Last week, I eliminated my entire position in George Risk (RSKIA).
This position was about 20% of my portfolio. It is now 0%.
My average sale price was $8.40 a share.
My average purchase price had been $4.66 a share (back in 2010).
I held the stock for about 6.5 years. So, the stock price compounded at about 9.5% a year while I held it.
George Risk also paid a dividend. The yield was rarely less than 4% a year. So, my total return in the stock was about 13% a year over my entire holding period.
My return in George Risk was not better than the return I could have gotten by simply holding the S&P 500 for the same 6.5 years.
However, the stock was cheaper than the S&P 500 when I bought it. I believe it remains cheaper than the S&P 500 today.
Right now, George Risk’s dividend yield is about 4.2%. And the stock has $6.36 a share in cash and investments versus a share price of $8.40 a share.
I didn’t sell George Risk because I no longer like the stock. Rather, I sold George Risk to make room in my portfolio for a totally new position.
I try to only buy one new stock a year. So, when I do finally buy this new position – it’ll be a big moment for me.
I’ll let you know once I’ve added the new position.