Sneaky Falcon Enterprises, LLC has sold 12.7 shares of CVS Health (Ticker NYSE:CVS).
Another stock we mindlessly held on to, with no real exit strategy. Although we ate a loss, we had a better use in mind for the cash just wasting away in CVS.
CVS shares were sold for a price of $65.41 resulting in $825 in cash (after commission). The sale resulted in roughly a $330 loss, or a return of -30%. Those numbers look a little better when you factor in the dividends we’ve collected over the last 2.5 years, but whatever.
The thesis going in was that healthcare was a good place to be, and CVS was a pretty safe bet given their scale and diverse business. That thesis may still hold true over the long term, but with so much uncertainty around the merger with Aetna, not to mention the proposed debt required to make the deal happen, the stock has just been punished since we bought in.
We may look back and see this as a huge missed opportunity to load up on more shares once all of the healthcare consolidation shakes out. For now, CVS no longer fits into our go-forward portfolio strategy, and so it’s time to say goodbye to one of our oldest current holdings.
Sometimes we actually buy things that don’t suck. Visit our portfolio page to see our other investments.