I will take advantage of the uptick in the market and Chinese stocks in particular to sell Noah Holdings (NOAH) from the Growth Portfolio.
Noah is a brokerage firm in China that focuses on wealthy investors. Much of the portfolios consist of bonds, which have fared well during the Chinese stock market crash we are in. Still, I think the decline will do two things to Noah’s business. First it will lower asset bases which in turn lowers fees the firm charges its customers. Second, investors will be resistant to investing in this unsure environment.
After the 2000 and 2008 US stock market crashes it was tough to get new investors to take the leap of faith to invest in stocks. I know this first hand.
I purchased NOAH on 5/14/13 at $16 and will sell today at $25. The stock hit an all-time high of $34 in May and was $30 at the end of June. My 2015 Fair Value on the stock is $28. The holding is one of my smallest positions.
I will also reduce my exposure in Vipshop (VIPS) and YY (YY) but will continue to hold these stocks for now.
