Selling SKF

I sold SKF today at a loss of 10% - gave a market order to sell before the market opened. From +10% to -10% in 3 days illustrates the power of leverage. It was a good learning as it reminded me of what I learnt from the Motorola fiasco two years ago.

I think financials are now out of the gate - sentiment is as imporant as reality, the big writedown cycle is most likely over and the regulators are on the case. I have bought KBE at $41 - it is the financials ETF. Plan to hold it for long unless it suddenly jumps to 47 and above.

I also bought Philip Morris International at 16x 08PE and it is now the largest position I have. I like cigarette companies as the free cash flow generation is huge.

Another lesson - buying/selling at open doesnt make sense on a day like this, wait for 30 min for the initial rush to pash through and one can get 1%-2% better for sure.