To be honest by mid-year 2019 I was feeling quite confident in my portfolio returns. Crypto was doing ok at the time, had some bounce back in some of the beaten down stocks I had bought into at the beginning of the year, but very quickly after I wrote my mid-year post the portfolio took a turn. Crypto went down as I was hoping for which provided opportunities but also oil took a dump as well. Overall the back half of 2019 was very frustrating, some of which I will discuss below.
To end 2019, my portfolio returned 21.86% compared to the S&P’s 30.43%. So, losing 4.64% in the back half of the year while the S&P kept on trucking was quite frustrating, but I also think a few good things occurred. Here is my portfolio as of year-end 2019:
Second Half Moves
As much as I talk about being a long term investor, I did some moves in the second half, one kind of regrettably.
Sold completely out of Tyler Technologies and Rosehill Resource Warrants. First, the Rosehill Resource Warrants, this was just a straight up bad decision to buy them in the first place. I have no business in investing in commodity type businesses, I thought they could simplify their cap structure and ultimately divest their water assets bringing some relief to the shareholders. Ultimately lost my faith in management so I decided to bail, admittedly too late. Second, Tyler Technologies, still very much love the company and somewhat regrettably sold to purchase shares in Mesa Laboratories.
Sold some Markel and Mr. Cooper to purchase some of the undisclosed position. I don’t want to reveal the undisclosed position for two reasons.
- I think the stock will trade poorly for the next few years and I don’t want anyone to chime in telling me I made the wrong decision
- Along the lines of number one, I intend to make this a much larger position so I don’t want to be influenced by what others think.
I did make some smart buys. Crypto went down during the second half so I tried to add to those positions when I thought it was a good price. I do feel like purchasing Mesa Laboratories and the undisclosed position are good buys particularly since I think they are companies that I can dollar cost average into even at today’s prices.
I think my primary concern is continuing to try and control my emotions. Currently I’m convinced that Mesa Laboratories and the undisclosed positions are my bread and butter for the next few years, but that means I have to stay convinced of that for the next few years. If data changes sure I’ll change my mind, but if data stays the same but I’m just a little envious of others returns or something else, then I need to stand my ground.
Please review the disclaimer, and please do your own due diligence. I’m not that great of an investor.