Adjusting my portfolio.

I write these post for those people who come by this blog and to help me remember and adjust my way of investing.. During the writing of this blog I learned a few lessons and have kept track of my decisions.  With the way the market has been changing, I have recently adjusted my portfolio much more.  I have gone from buy and hold to more of a buy, hold, and adjust.

My new method is not about buying and holding the same investment forever but about investing for the long run and adjusting my portfolio in a way that best meets my opinion of the future.  Most of my investment are still held for years at a time.

here are my recent changes.. You can see all of my changes here.. http://www.insomniacinvestors.com/p/portfolio.html

I recently sold 30% of my Netflix investment.. Selling at 271 a share.  The gain was  900% from my original investment.  The reason for selling was more a tax move.  I believe netflix will be very volatile in the near future.. I actually sold in order to pay capital gains tax on long term gains and am looking for a short term adjustment.  I repurchased shares at 221 and have actually reduced my initial cost by selling high and buying low with Netflix's own gains..

I recently sold my Visa options for the actual Visa stock..  The options gains were 58% in only 9 months.  I purchased the options during the months Visa was very volatile due to the debit card ruling.. I now believe the stock is safe to own and we want to take advantage of the dividend payment and not lose the time factor options have.  Visa continues to be my biggest investment and it has appreciated 11.13% while the market has declined 1.39% during the same period..

On 7/29/11 I sold 30% of DB to hold in cash..(Maybe I should have sold 100% but hindsight is 20/20) Now I have reinvested those funds by adding to my MCD position.  MCD delivers solid earnings, great dividends, and a high margin of safety.. Riding out a European bank right now is a hairy roller-coaster ride.

I did a cardinal sin with my L Investment (Loews).  I let a big gain become a small gain.. I was guilty with NE (Noble) of the same crime as the market went up and came crashing back down, but both paid dividends and the gains were measly, but that is much better than a loss.  I am 15% cash at the moment though I'm  actively looking for another buying opportunity..

Currently my interest is in GS, MS,BAC, BRK-A, KSS, ROST,  and ANAT once again..  All of these seem discounted and at great value..

found this interesting video on diversification..
http://www.marketwatch.com/video/asset/cuban-on-investing-diversification-is-for-idiots/233AE43E-9DA3-40A3-8F6B-9DC23DD82BEF#!233AE43E-9DA3-40A3-8F6B-9DC23DD82BEF