Sold Wabco (WBC) to Raise Cash in Case there is a Recession

posted Sep 6, 2016, 3:46 PM by Intelligent Investor   [ updated Aug 2, 2019, 4:01 PM ]
The signs of a recession are getting stronger, so I've decided that I needed to raise cash. Out of all the stocks I own, Wabco (WBC) seems to be the weakest link. The stock's volatility is high, the P/E ratio is at 30 which is expensive, and it doesn't pay dividends. On a separate note, Berkshire Hathaway's recent 13F filing shows they've reduced its exposure to Wabco. So, I basically just sold Wabco at the around the same price I bought it. I just broke even on this trade. The only lost I had is $40 bucks on trading fees. Oh well, better safe than sorry. The main concern is that if a recession does come, then I'll have some cash to put to work.

Note: Over the long term, I believe Wabco (WBC) will do very well.