Apple’s AAPL +0.09% on a tear. Fusion-io’s FIO on a tear. Google’s GOOG +0.13% been steadily rallying for a long time now. Lindsay LNN +1.55% too. Which means four out of the Revolution Investing portfolio’s five largest positions have been rocking higher and propelling our portfolios to new places.
Here’s a chart of those four stocks over the last 90 days (which consists of about 65 trading days):
And guess what — having 15% to 45% gains over the last three months means that these stocks and many others in our long portfolio are probably starting to get a little bit ahead of themselves. Remember when we were buying Apple calls back when it was more than $100 lower than today’s quote? Same with Google. Heck, just two weeks ago, I told you guys that Apple was about to break out and head to $700. Not quite there yet, but…
Sell when others are greedy and wait til the markets panic again next time to get aggressive about buying.
As for me, I’m going to go ahead and sell down some of my Apple and my Google today. For Apple, I’ll trim by selling a little bit of the Apple common. I’m also going to sell up to about half of my Google calls, which will still leave it a top 3 position. Apple will remain my biggest position, but I’ll have locked in some very size-able gains from my most recent purchases on this one.
Facebook’s FB +0.11% the big loser in the portfolio right now, but even that one I remain rather confident about if you’ve got a time horizon of at least a couple years out. I don’t know where it will bottom and as you guys have seen, I’m willing to be very patient before adding any more to it.
I know a lot of you are very happy about your portfolio’s performance of late. That’s the time to trim a little bit. Next time you nauseous and cry over your portfolio, that will be the time to get aggressively long again.
Little tweaks to the portfolio like this over time contribute to long-term outperformance.
To learn more about how to trade your positions up in any market, I invite you to check out my new book, Everything You Need to Know About Investing, where I explain how that works in easy-to-understand language.
Cody Willard writes Revolution Investing for MarketWatch and posts the trades from his personal account at TradingWithCody.com. At time of publication, Cody was net long Apple, Google, Linsday, Facebook, and FIO. Follow Cody on twitter at twitter.com/codywillard. Cody’s new book, Everything You Need to Know About Investing, is available in digital and in paperback.