Closed my TLT short position

Bought back @94.43 the 6 TLT ETF units I had shorted recently, for a meager 16 dollar profit. The reason is because I did not have the opportunity to short much more at higher prices, and I do not like to keep small hedging positions unless I plan to add much more at current levels, which I wasn’t. I started shorting over 97 but it never went much higher to establish a solid entry. Keeping just 6 etf units is not much of a hedge.

There is quite some fear on the market so I might get the chance to short much higher amounts at higher prices if there is another fear shock, and if there isn’t then its no problem since in that case there will be not so much need to hedge.

So my point is that I will re establish a short position only if there is a panic attack on the market, in which case stocks will go down, and TLT will be, hopefully, as it has in the last years, be used as a safe haven and will go up providing a good and safe entry point. I say good and safe because given inflation and interest pressures much higher prices for T-bonds are, I believe, unsustainable.

3% in 2 weeks would have been an excellent return if I had shorted much more, but the right price for that was not reached.

At least with the 16 dollar profit I can pay this months commissions which was quite an active month for me.

Cheers!
jrv

About jrv

I was born in Spain and lived in Belgium, Chile, France, USA, Argentina among other places. Currently I am trying to settle down in a wild place. I am "retired", even though now I dedicate more hours "working" for my investments than I ever worked in the real labor market where I used to work in IT and Banking. I am a family man, I have a lovely wife, several sons and one step daughter. I have humble tastes, I like to stay home and read about companies and investments. I started investing at 25 before the internet bubble exploded. I did not know much about investing and liked technical analysis so my results were pretty bad. Fortunately I did not have much to lose. Some years later in 2006 bored of doing only real state investments and with quite a lot of money saved I opened an account in a cheap and excellent online broker and started again. This time I did not want to commit the same mistake, so I decided to follow a model. I heard that Warren Buffett was the best at making money via stocks so I started by reading a lot about him, all of his shareholders letters and several of the books that he recommended. I learned a lot, started applying his investing principles and reading a lot of 10K's. Digested news from lots of different sources. Basically I started buying very good and cheap companies and holding them for ever if possible and if nothing changed fundamentally. When the housing crisis started I was more than 75% cash. At that time I identified good companies at incredibly cheap prices so I invested most of my savings in stocks. In less than I year I doubled. By the second semester of 2009 I turned my software company into an investment vehicle and dedicated myself full time to it. My wife and I decided to change our lifestyle and moved from Belgium to the beach in a wild country. The goal was to keep fixed costs low in order to be able to live with a minimum 6-8% yearly return but specially to move away from the inhuman life of civilization and to have finally some peace and sunny weather to concentrate better on investing. Now I can think and study about companies 60 hours a week and I am doing great. I can finally do what I want full time and can proudly say that I have never been so happy, specially also with my just born 4th son, my other great kids and my sweet wife who supports me fully while I study most of the day and patiently wait for the opportunity to make a swing ! You can learn a bit more about my portfolio by viewing it at www.kuchita.com/view/sumo.php or you may learn more about me and my family by following the link "Author's site" from the menu above.
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