We've made further adjustments to our US portfolio. If the share in our portfolio of any position goes above a certain threshold, we tend to consider selling some of that position in order to realize gains. At the same time we free up cash that allows us to increase a different position or to start a new position.
Brown-Forman (BF.B) had a good run and we sold some of the shares. We bought them in October 2016 at USD 46 and sold them at USD 69.22, a gain of 50.5% in about 16 month which is not a bad result. BF.B is a dividend aristocrat and we believe that they continue to be a good story. Liquor may have ups and downs but long term human mankind always gave in to the craving as history teaches us. They increased the dividend again in fourth quarter of calendar year 2017. On 23 Feb they declared a special dividend of USD 1.00 per share and also a 5 for 4 stock split. The dividend of USD 0.158 declared on the same day is already adjusted for the stock split, so is equal to the USD 0.1975 amount pre-split. BF.B has been paying dividends for 77 years and has increased the dividend in each of the lasts 33 years.
After realizing gains with selling some of our shares in Microsoft (MSFT) and AbbVie (ABBV) and after also selling our entire HCP Inc (HCP) position we used the proceed and some cash to start a new position with Alphabet Inc Class C (GOOG) at a price of USD 1,115.77. Alphabet with Google being it's biggest subsidiary and cash producer has a healthy growth rate of over 20% year-to-year. They are particularly strong in the artificial intelligence (AI) space and are also making very good progress in cloud computing. Obviously the other big guys in these markets are no push-overs. However, with the amount of cash Google produces and with the vast amount of the data they already have and continue to collect they have a lot of training data to make their AI technologies smarter as this additional data comes in. We believe GOOG is a great opportunity to participate in the commercial success of these exciting technologies.
Happy investing!
Disclosure: We hold shares in BF.B, MSFT, GOOG and ABBV. We do not hold a position for HCP. We have no plans to change any of these positions or create new positions in the first 48 hours of publishing this post.
After realizing gains with selling some of our shares in Microsoft (MSFT) and AbbVie (ABBV) and after also selling our entire HCP Inc (HCP) position we used the proceed and some cash to start a new position with Alphabet Inc Class C (GOOG) at a price of USD 1,115.77. Alphabet with Google being it's biggest subsidiary and cash producer has a healthy growth rate of over 20% year-to-year. They are particularly strong in the artificial intelligence (AI) space and are also making very good progress in cloud computing. Obviously the other big guys in these markets are no push-overs. However, with the amount of cash Google produces and with the vast amount of the data they already have and continue to collect they have a lot of training data to make their AI technologies smarter as this additional data comes in. We believe GOOG is a great opportunity to participate in the commercial success of these exciting technologies.Happy investing!
Disclosure: We hold shares in BF.B, MSFT, GOOG and ABBV. We do not hold a position for HCP. We have no plans to change any of these positions or create new positions in the first 48 hours of publishing this post.
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