Investor Gremlin here to talk about the second time a stock of mine doubled in value over its initial purchase cost. Today, my shares of Westlake Chemical (WLK) broke through the 100% barrier, becoming the second stock in my portfolio to do so. My position in WLK was initiated at the end of 2016 using rollover 401k funds in my IRA. Of all the companies in my IRA WLK was added as the "large percentage / low yield grower." In addition, WLK represented the first materials company in my portfolio overall, which is now augmented by my recent acquisition of Sonoco Products (SON).
Overall the ride with WLK has been pretty wild. My 45 shares were worth $2500 at the end of last year, and now are worth more than $4500 (original investment was $2270). I have had a few friends tell me 'time to sell.' I disagree, I am here for the income primarily. The capital gains are nice, but I currently do not see the upside in selling without risking future payouts. I see WLK continuing in its prosperity, and that the price run up is due more to sound fundamentals as opposed to rampant speculation.
What do you think of WLK?
- Gremlin
- Long WLK and SON
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