My position in Unilever (UL) in the Fat Pitch Financials Portfolio was sold yesterday. Unilever traded up recently on news it is selling off its marinades to McCormick (MKC). The price of UL shares had become richly valued, and I started getting concerned that a margin of safety no longer remained. The 9,000 shares in the FPF Port were therefore sold for $36.30 yesterday, November 14, 2007. My net proceeds were $326,714.20.
I originally purchased these UL shares way back in September 21, 2004. It was actually the first stock I purchased after having started this blog. I have found it very hard to part with this stock since it has been the oldest and highest returning position so far in the Fat Pitch Financials Port.
According to Marketocracy statistics, my Unilever position produced a total return of 110.77%. This year alone the stock returned 33.59%. Taking into consideration the timing of dividends and the holding period for my position in Unilever, I just calculated my annualized rate of return on Unilever to be 28%. I am very pleased with the performance of this pick.
I’m currently building up another position in the stock of a small restaurant chain. I write more about this pick shortly. In addition, I’m researching several other potential value opportunities. If I get some free time, I’ll try to share some of my work so far.
Disclosure: I no longer own any of the shares mentioned in this post.