Sell Costco out of Jubak's Picks to raise cash

12/28/2012 5:10 pm EST


Jim Jubak

Founder and Editor,

On December 26, I wrote that raising some cash in the uncertainty over the U.S. fiscal cliff made sense. Yesterday, I wrote about how to decide what to sell to raise cash and recommended selling Costco Wholesale (COST) out of Jubak’s Picks

My reasoning? Two weeks ago I posted that I thought I’d got most of the gains out of owning Costco Wholesale (COST) that I could expect for a while, especially after a $7 a share special dividend, but that I would hold on for a bit further into December since, on December 12, the market seemed to be trending upwards. Holding on now for an upward trend that seems to have vanished doesn’t make sense. A stock like this is a good source of cash right now.

I’m selling with a 2.1% gain since I added the stock to the portfolio on October 24. Add in the $7 a share dividend and the total return comes to 9.4%.

Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund, may or may not now own positions in any stock mentioned in this post. The fund did not own shares of Costco as of the end of September. For a full list of the stocks in the fund as of the end of September see the fund’s portfolio at

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