Sold my USG bonds

Just saw that my limit order to sell was activated. It sold out 3030 US$ worth of USG bonds at 101% of face value on the 7th September. Those are the same bonds I bought last September at 77% face value for 2300 US$. They appreciated substantially and gave some nice interest in the meantime. The profit, including transaction costs, with the 2300 US$ invested was 710 US$ due to bond appreciation plus 186.9 US$ in bond interests that equates to 39% in a bit less than a year.

All my USG stocks positions are also sold, I have nothing invested in the company. I was not comfortable holding the bonds with a 6% yield considering the risk and the alternative of having a Rabobank savings account that gives 2.5% in Euros. I prefer to have a riskless 2.5% Euro fixed return than a risky USG 6% yield in dollars. This contributes to reduce my dollars exposure and increases the cash available for other alternatives, like for example Dell, which I have been gradually adding to lately, including today.

For those who trade bonds this site is great: http://www.investinginbonds.com/advsearch.asp. You can input the cusip where it says corporate bonds (in my case the cusip number was 903293AR9) and see all the trades, including mine (7th Sept, sold at 16:56). The level of detail is outstanding. Another good site I use to see how much bond exposure (debt) a company has is this one: http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=usg

Cheers!
jrv

PD (Interactive Brokers trade log): SLD $3K USG Bond 6.3 11/15/16 IBCID46953122 101.000 USD SMART SEP 7 16:56:21 6.06811 6.02261 5.00

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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