Selling This Stock

Jun 20, 2026

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Selling a stock is way harder than buying it.

The opportunity costs are potentially much higher.

The stock can only go down 100%, but the upside you might miss out on is unlimited.

Sell alert! Why this expert is calling time on NAB and Westpac shares

In general, there are 4 possible reasons to sell:

The facts no longer support your thesis, or the initial thesis was just plain wrong
The position has grown to be so large that you can’t sleep well at night.
A more attractive opportunity deserves the capital
The price gets so far ahead of the business results that future returns have been pulled forward already - this is by far the hardest to determine, and we try very hard not to sell based on price alone.

Today, we’re selling a stock for reason #1 - the facts no longer support the thesis.

We’ll use the proceeds from this stock to add to some undervalued stocks we already own, and to build our cash position for future buys.

Ready to find out what changes we’re making? Read on!

Locking In 10 Years of Dividends

We initially bought this major position back in May of 2025 and scaled it up to a full position by October. Since then, the stock has rallied significantly and is up more than 30% over the past year.

As it stands today, we are sitting on a gain equal to roughly 10 years’ worth of the company’s current annual dividend payment.

While the business has performed well, the shifting political and regulatory landscape has changed the original thesis.

At the same time, the stock’s valuation has gone past its historical average.

When political risks rise and a core thesis changes, we don’t hold on just for the sake of holding on. It is time to secure that 10-year dividend gain and redeploy that capital into ideas where the wind is at our backs.

Where We Are Reinvesting the Capital

On Monday, we are taking those proceeds and adding to three high-conviction businesses we already own.

These are strong companies, but short-term market fears have given us a great entry price.

1. The Low-Cost Market Compounder

The Situation: Macroeconomic headwinds have temporarily slowed down this entire space, causing weaker competitors to close up shop or sell out to private equity.
Why We’re Adding: This company boasts the lowest operating costs and highest profit margins in its industry, allowing it to aggressively take market share during tough times. Management still firmly believes this business has room to double its retail sales, and we want to build our position before the economic cycle turns.

2. The Wide-Moat Innovator at a Historic Discount

The Situation: The market has severely punished this stock due to a temporary lull in its product launch cycle, creating a massive disconnect between its price and its long-term earnings power.
Why We’re Adding: This undisputed market leader has a massive pipeline of potential blockbuster products that will face zero competition upon release. It is currently trading at its lowest valuation level ever, and company insiders have been buying up shares with their own money.

3. The High-Yield Dividend King

The Situation: Broad market anxieties over artificial intelligence replacing software, combined with a cooling labor market, have dragged this incredibly resilient business down.
Why We’re Adding: The switching costs for this company’s platform are massive, once an enterprise integrates them, leaving is a massive operational headache. Thanks to the recent sell-off, this iconic Dividend King now locks in a rare yield of over 3% for us.