I sold Take-Two, bought Kraft Heinz shares!
Check out my latest transaction within my US TOP 3 portfolio and its current state.
I started my US TOP 3 portfolio on January 7th as a fullfilment of one of my New Year's resolutions. The other two were not to drink alcohol outside of weekends if not necessary and limit coffee to absolute minimum
So I it was a bumpy ride so far, but nodoby was telling it was easy! First everything went perfect and I was up on every 3 positions and then unexpected miss of Take-Two earnings expectations happend and the price tumbled. I look through the report and I was appalled at CEO explanations of such a dissapoiting both result and outlook for the next quarter. Basically, all they did was boasting on how great they were. I gave them a chance for a few days but when the price went down again I did not think twice and I dumped all my 25 shares on Friday.
I was especially surprised how little net margin they had in the quarter of the biggest blockbuster hit in the history - Red Dead Redemption 2. Perhaps most of the possible profit went to exhausted developers and greedy management in the form of bonuses.
Ok but I never cried over the spilled milk so today I decided to get back to action and bought 62 shares of demolished shares of Kraft Heinz. Everything what would go wrong, actually went wrong in terms of this company - miss of earnings expectations, dividend cut and even SEC investigation on top of that! And the price tumbled as much as 27% on Friday!
Warren Buffett said in today's interview by CNBC that he did not absolutely have any intention of selling stake in Kraft Heinz and still thought it had a valuable brands and that it was still a wonderful company.
So is it a classic catching a falling knife?
Well, time will tell us but as I am a loyal pupil of the great Sage of Omaha I go with his strategy based on the fameous saying "be greedy when others are fearful". And now everybody's definitely scared to death in terms of Kraft Heinz. Maybe even they stop buying ketchup? just kiddin...
Current state of my US TOP 3 portfolio (click to enlarge):
I marked closed transaction of Take-Two in red as it brought 13,8% loss in USD terms ans 13,3 in my country curency (PLN).
In USD terms I am still up above 10% on the whole portfolio.
What is next? Nobody knows but at least I am trying.
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Best investing regards!
Albert "Longterm" Rokicki
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