Friday 27 June 2008

Revamped US stock portfolio

I sold off most of my US stock portfolio last month, just retaining my Microsoft shares and the one 'B' share of Berkshire I'd recently bought. Today I placed an order to buy another 9 BRK.B shares at market price, which should be filled overnight. That should leave around USD$18,000 in my Comsec-Pershing brokerage account, which I'll transfer back to my Australian bank account on Monday. I'll keep the cash sitting in my credit union high interest account, so that it's available to pay the monthly interest on the margin loan accounts that aren't prepaid this financial year. It will also be handy to have some ready cash available in case there's a severe stock market crash one day soon, and I need to avoid a margin call.

My US stock portfolio will now just consist of 10 Berkshire 'B' shares and a few Microsoft. Since the brokerage fees charged by Comsec-Pershing are so high, this will be a "buy and hold" portfolio from now on. Hopefully Warren Buffet is able to pick up some bargains amongst the sub-prime casualties, and Berkshire will continue to perform well over the next 10-15 years. We'll see.

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