Reasons why I sold Magna.
- Trump threatened German car makers with a 35% import tariff.
- Magna supplies crazy amounts of parts to German car companies.
- This threat brings uncertainty
- Uncertainty is an investor’s biggest enemy
- I made enough money and am happy
Original purchase price was 20 shares at a price of $52.12
Sold 20 shares at a price of $57.20.
Locked in a profit of $102 or 9.79%
It’s not a huge profit, but when you put in terms like percentages, near 10% is an awesome profit for some unknown uncertainty. How good, keep up the good work.
Thanks for the positivity BHL
It’s a small profit on a small holding but like Warren Buffett says, rule #1 Never lose money.
I’d rather lock in a sure profit than take a gamble.
Ben Graham says to sell if there is a regulation change or a lawsuit based on uncertainty.
I tend to agree 🙂
Thanks for the update – it’s hard to know what will happen with Trump given all his rhetoric. But I agree that erring on the side of prudence is probably the right decision.
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It’s a tough call to be honest.
It’s a very small position and I might re enter at a later date when things settle down a bit.
Great site btw Jay, you have some great info.
I’ve decided to hold my MGA stocks for now. Trump said a lot of things. Campaign promises rarely lead to anything, especially once Trump see how inefficient DC is. But, you bring up a valid concern. Once a see a wall start going up on the border, then I’ll take him seriously ;-). We’ll see what happens.
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Don’t get me wrong IH, I still think MG is the BEST car parts company in the world.
I honestly hope Trump relaxes his import stances. If he does I will jump right back into MG even deeper. I was planning on raising my stake in MG before all that talk 🙁