Treasury Wine Estate’s Share Price Dives, Again!

Let’s face it, I have never been good at timing the share market. When I buy is usually a good time to sell, and vice versa.

Yesterday I seem to have inadvertently made an accidentally smart choice where I sold 900 of my 1000 Treasury Wine Estate shares at $7.78. Today, TWE shares dropped as low as $7.39 at one point, and currently are at $7.57.

The reason for the sale of most of my shares is that I do not really see them as having great long term growth prospects, and think that most of my capital is better invested elsewhere.

I did keep 100 shares for the same reason I invested in TWE in the first place – because I buy a lot of the product and I want to attend the well catered AGM in October. I just no longer think that owning more than a marketable parcel in this company is worth my while.

I partially offset my capital loss by selling my Wesfarmers shares which have done well since December when I bought them. I then put the proceeds of these sales, along with yesterday’s Rural Funds Group dividend, into 10,000 more shares in WAM Capital. The dividend yield on this listed investment company is around 9%, although it does not show much dividend nor capital growth.

My reasoning is getting large dividend payments from rather boring companies that go nowhere is better than getting small dividend payments from fun companies which are not doing so well.