Selling stocks isn´t something I want to do often, but let´s just make it simple: If you need money, sell. I purchased Target around $53 and sold yesterday at $59. Total profit was only 5%. I never intended this investment to be a buy and hold forever kind of thing. However, owning a stock for only 188 days is short. I admit that.
So why did I sell?
- While Target is soon to become a dividend king, the online sells only makes up about 5% of targets earnings. management is working hard to become better at this area, and are now growing e-sales with 20% yearly. However, it will take time before they can compete with Amazon and other retail stores. In short, there are better investments around, even in the retail sector too, where you don´t need to involve yourself in the battle against Amazon. I think the clue when investing in Retail is to find companies who actually are selling a lot online, such as XXL (norwegian) and Byggmax (swedish)
- As I said in my latest Dividend Income Update, I have a lot of stuff going on, and most happenings are expensive.
- Eye Surgery: $4000
- Moving and living in Tokyo for half a year: Maybe $10000?
- Travelling around for 2 months: Maybe $5000?
- Total: $19000
- For me, the single most important factor is to always have control. Right now, I have around $18000 in my savings account with 2.10% interest. Meaning, I can cover my expenses without any problems. This gives me comfort, and while having so much cash in a saving account might not suit you, it suits me. However, if I see that I can get by with only $12k or $15k, I will invest, but patience and doing nothing is also a skill we need to learn. Right now, I´m waiting for some answers if I can get the eye surgery payment done with a interest-free loan over 2 years, which would mean that I can invest around $1000!
I know that this post wasn´t the most exiting stuff that I´ve written. But, I wanted to emphasize that the battle between investor vs everyday challenges is real for me too. The future is complex and the only thing we can do is to prepare and make plans.
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