Is it ok to brag?

In this post, I am going to do the one thing people really don’t like about stock-traders: I will tell you, that I bought a stock at the absolute bottom. This was more luck than skille, but I’ll tel you the story how a got a REIT at a yield on cost above 20 % which now is trading at a yield on cost less than 8 %.

In February I started to sell some of my biggest index funds. I was worried about the market, and I was right.

After the market started to take a downturn, I began buying stocks again. I made some bad calls, especially regarding oil stocks, which I thought had hit the bottom… then the crisis between Russia and Saudia Arabia hit. Bad news!

Buying at the bottom

But! I continued buying stocks all trough March and April, and now I can look back, and see that I managed to buy three stocks and the very day, the market hit this years bottom: March 23rd.

On that day I bought these three stocks:

  • Boeing @102
  • Carnival Cruise Line @8,67
  • Ellington Residential Mortgage @3,66

Boeing currently trade around 175, Carnival around 15 and Ellington around 10.

These are some great returns in under 6 months!! But I haven’t sold the stocks.

Ellington has continued to pay dividends, which means I actully get a yield on cost of more than 20 %.

Ellington Yield on cost the last 6 months. Gues where I bought 🙂

I still believe in the buy-and-hold strategy. I love to pick up stocks at discount prices, and that is excactly what I did with these buys. I have bought stocks at a regular basis since January, but in the last month or so, I have done it in a much slower pace because I believe the market is highly priced.