Sold Stryker (SYK) today at $56.81, just below my Intrinsic Value calculation of $57 per share. This gave me a 46% return since Stryker was purchased in May 2009 (8 months), not including the dividends collected also.
According to John Hussman, the market may be in the process of forming a new high just before significant losses just ahead. I’ve been hoping that a few more of my stocks would hit their Intrinsic Value prices so I could sell off at a possible top in the market. I intend to hold all the remaining stocks thru any downturn, as I feel comfortable knowing their true ‘Intrinsic Value’. The commodity stocks in the portfolio could fall harder than the overall market, but I (as Hussman) believe that inflation will drive these stocks much higher in the future. The portfolio is now over 50% cash so would weather any downturn much better than the overall market.
As an aside, my take on Hussman’s view is that he sees parallels to the 1973-74 Bear Market. A very nasty bear market before inflation takes over, just like the 1970’s. Not a good stock investing environment (unless you’re in commodities, or unless you bought stocks near the 1974 lows). In that regards, I have a long watch list of stocks that would be great buys at 30% discounts to today’s prices.