5G·

🥤 Coca-Cola Position Closed — And Reopened

Yesterday, $KO (-0,68%) reached a new all-time high, triggering my predefined take-profit order and fully closing the position.

That's exactly how my Blue Chip Fibonacci Portfolio works: entries and exits are planned in advance. No emotions, no second-guessing, just execution.

After the position was closed, I started building a new $KO (-0,68%) position. Why? Because Coca-Cola remains one of the highest-quality consumer staples stocks in the market, with a strong global brand, resilient cash flows, and a long history of rewarding shareholders.

✅ Position closed according to plan

✅ Profits realized

✅ New position initiated

✅ Long-term thesis remains intact

Now let's see what the next chapter brings.

#trading
#profit
#long
#tradingstrategy
#cocacola
#ko
#stocks
#usa
#mikeupegui

22.10

Coca-Cola

Venduto a 95,23 USD

36 Commenti

jkb92@jkb92

Could you explain your notion of selling and directly buying again, in particular at ATH?

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Poor Dad@PoorDad

@jkb92 Maybe he'll buy $PEP 😋

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Keineui@Keineui

@jkb92 I think there was already a discussion about this from him, and I didn't get it back then either...

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Mike@MikeUpegui

@jkb92 For me, this is primarily a matter of risk management. When $KO reached my pre-set profit target, the position was sold in accordance with my rules. This allowed me to realize a profit of just under 35%.
The fact that I subsequently bought back in simply means that, in my view, Coca-Cola remains a high-quality company with a sound long-term investment thesis. That’s why I’m starting a new cycle with a correspondingly small position size and new entry and exit levels.
The goal of my strategy is not to predict tops or bottoms, but to systematically lock in profits, free up capital, and at the same time remain invested in high-quality companies.

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jkb92@jkb92

@MikeUpegui But then why don't you just sell off part of your holdings?

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jkb92@jkb92

@jkb92 That aside, $KO is overbought on a monthly basis. Combined with the fact that it’s at its all-time high, I can’t imagine a worse time to buy. At some point, the gap between $PEP and $KO will most likely close.

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Stocktective@Stocktective

@MikeUpegui And the bottom line of the strategy is to interrupt compound interest? I’m not afraid of taxes like some yield junkies, but I don’t really get it in this context either. If you buy the security right back and plan to hold it forever, isn’t it really inappropriate or unnecessary to pay taxes?

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Mike@MikeUpegui

@PoorDad $PEP I have that in my portfolio, too. It's currently down slightly: -1.45%

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Robinhold@robinhold

@MikeUpegui taxes + speads on buy/sell, there is no clear win here, I tried to understand your explanation, but if you plan to buy anyways you could just check monthly/quarterly your sell orders and when you are close, you can make you mind and cancel sell order and set new target if you still wanna keep the stock, no need to sell and buy and expose yourself for taxes and speads.

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Fabian Frey@fabfrey98

@MikeUpegui I don't get that. That triggers a tax payment every time and interrupts the compounding 🥲

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Fabian Frey@fabfrey98

@MikeUpegui I don't get that. That triggers a tax payment every time and interrupts the compounding 🥲

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Visualizza tutti 11 ulteriori risposte

🏊🏻‍♂️ • 🚴• 🏃‍♂️ Endurance Life@MozartsGeist

☝️Naughty boy!

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Solitair@Solitair

I can understand selling positions in the red and buying back for tax reasons but this makes no sense to me. 🤷‍♂️

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Mike@MikeUpegui

@Solitair Yeah, but it's not a tax strategy for me. Realizing gains and cashing out profits is actually one of the goals of my strategy. I deliberately accept the taxes and potential loss of compounding in exchange for a rules-based approach to profit-taking and risk management.

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Amine@Amine

Mike, your system is merely a mechanism for destroying capital. I sincerely hope no one follows your lead!!!

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Mike@MikeUpegui

Don't worry, nobody is forced to copy my homework.

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Mav83!@Maverick4831

That really makes a lot of sense…

No way!

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Mike@MikeUpegui

We can agree to disagree 😄🍻

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Nuno F.@Nunalho

What?!? CRAZY

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Mike@MikeUpegui

Maybe... but at least the strategy keeps the trading interesting 😄🚀

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Marty0292@Marty0292

And no compounding

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Mike@MikeUpegui

@Marty0292 True, but that's by design 😄 My strategy prioritizes realizing gains and cashing out profits over maximizing compounding. I accept the trade-off because disciplined profit-taking and risk management are key parts of my approach in my Blue Chip Fibonacci Portfolio.

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TomTurboInvest@TomTurboInvest

@MikeUpegui I still not get the point, where is the „riskmanagement“ 🤔You immediately reopen the same position. Riskmanagement for the tax authorities is the only riskmanagement I see, You pay taxes before the “risk” arrive and the profit shrink and tax income disappear.

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Stocktective@Stocktective

@TomTurboInvest I did understand it that way that he isnt re-opening the whole 100% Position back to back since the ask price is too high, so if thesis is intact he maybe buys back 60-80% of the original position? Maybe less, so in that sense hes following his strategy and its a risk adjustment, lowering the exposure to this very specific position. But i still cannot wrap my head around the theory to close the whole position, you can follow the principles with only selling the part which underlines the risk theory and reduce accordingly while saving alot of money on unneccesary taxes. Maybe thats a pure psychiological concept, but i either wouldnt want to waste that money without a clear reason. If all of the capital is deployed otherwise, sure makes complete sense but throwing money away for free is questionable at least

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Mike@MikeUpegui

@TomTurboInvest @Stocktective Fair points from both of you. Let me clarify how I look at it. The risk management in my strategy is not primarily about avoiding taxes or maximizing compounding. It's about limiting the exposure by lowering the position size, realizing gains, and reducing concentration risk once a predefined target has been reached. When a take-profit level is hit, that investment cycle is considered finished. The profit becomes realized cash, not just a number on a screen. After that, I reassess the company and decide whether I want exposure again. @Stocktective: You're right that I don't necessarily rebuild the exact same position size immediately. The new position is smaller because I'm starting a completely new cycle with new entry, accumulation and exit levels. As for the argument that a partial sale would be more tax-efficient: I completely agree. From a tax and compounding perspective, selling only part of the position is probably the more efficient approach. My choice is not driven by tax optimization. In fact, I'm not afraid of paying taxes at all. Realizing gains and cashing out profits is one of the explicit goals of the strategy. It's simply the framework that helps me stay disciplined, systematically realize profits, manage the exposure and keep emotions out of the process.

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