Thursday, February 26, 2015

Sold Boston Beer

Investing is all about being objective and not letting your emotions take control of the situation. Yesterday, I sold a small position in Boston Beer (Ticker: SAM) in my retirement account because of its revenue short fall. Even though I still generated a small gain of ~ 13%, the paper gain was obviously much higher at one point. I enjoy their product (Angry Orchard) and was planning to hold for a while, but fundamentally it was a really bad quarter and they had to guide down for 2015. I listened in on the earnings call and I didn’t like what I heard as the company was facing more competition, decreasing market share (Angry Orchard), slowing growth, higher transportation costs, etc… Also this stock was selling at a high valuation. This was in contrast to Constellation Brands (Ticker: STZ), which was and is firing on all cylinders with its beer biz. Constellation Brands has had a great run and continues to be my largest holding.


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