Sold last of Ventas, sold small position in J&J

Quick update, I've been doing some selling. Last week I sold the remainder of my Ventas (NYSE: VTR) shares. Shares just kept getting higher and higher, and I had some very substantial gains, so I took them. I also did the same thing with a small position I held in Johnson & Johnson (NYSE: JNJ).

Here is what I plan to do: I plan to leave about half of the proceeds in cash, and reinvest the other half, with some additional monthly contributions, into Phillips 66 (NYSE: PSX). It was either Phillips 66 or Schlumberger. I haven't taken this action yet, however.

Added Shares of Ventas Inc

Last week I added more Ventas Inc (VTR). To an account that I manage. I've been trying to build a large position in this medical building REIT, and this action was part of that plan. With Ventas yielding 5.3% and considerably below its average valuation, I think this one is worth buying more of. I will likely add more Ventas to another account when possible. As I've mentioned before, I have also been working to diversify away from energy. My portfolio is a lot more diversified than it was before, but I still have a ways to go. This is part of that move. 

Some Major Moves This Week

This week I made some big moves in an IRA that I manage. I liquidated two positions and rearranged the proceeds into three. Here is what I did:

1. Sold all shares of Home Properties (NYSE: HME). I've held onto this apartment REIT for several years, but the company recently sold out to private equity at $75 per share. When I sold, shares were $73 or thereabouts. Home Properties was already a little above fair value, and with the mini-pullback, last week there were a good number of stocks well below fair value, so it was really time to sell. I got in at the $50s and am happy to have logged a nice capital gain in addition to the generous dividend.
2. Sold all shares of Occidental Petroleum (NYSE: OXY). I originally got into Oxy believing that there was significant upside from the breakup of that company. Then the oil crash happened. I expected Oxy to rise to $140 some. I got in at $100 and now it's under $70. I chalked it up as a victim of the bear market in oil. Time to put money in better places.
3. I put roughly 40% of the proceeds into Kinder Morgan Inc (NYSE: KMI). I never thought this pipeline would yield 5.6%, but sure enough it now does, and I increased my position in this company by 60% or so. Kinder Morgan Inc is now the second largest holding in my portfolio just behind AT&T.
4. I put the other 40% of the proceeds into Ventas Inc (NYSE: VTR). I've been adding to my Ventas position here overtime. While Ventas isn't the screaming deal Kinder Morgan is, this name is still undervalued and I am happy to get that dividend at 4.8%-4.9%. I'll take it. Ventas is now my third largest position in this IRA.
5. I put the remaining 20% of proceeds into ConocoPhillips (NYSE: COP). If I'm going to be in an E&P, it might as well be the best one. I doubled my position in Conoco and it is now the fourth-largest holding in this IRA. 

 I made these moves to either shift into better value or cut out of a thesis that was not working. All-in-all, this move significantly increases my dividend income as Kinder Morgan, Ventas and ConocoPhillips each have yields significantly higher than that of Home and Oxy. 

I Bought Ventas Yet Again

To anyone who may regularly read this 'finance journal,' I apologize for being boring. Well, actually, no, I don't apologize for it. Finance is often at its best when it's not exciting. 

Anyways, on about the 26th of June I went ahead and bought Ventas (VTR) yet again for an account that I manage. This senior living medical REIT yields over 5%, and as long as that yield stays there, I will continue to not only recommend this stock but will buy it as well.

Some other 'runners up' that I gave serious thought to were:

ConocoPhillips (COP) and Kinder Morgan Inc (KMI). However, all of my portfolios are still overweight energy, and so I went with Ventas. 

Opened a new position in Ventas

I know I'm sounding a bit like a broken record, but one of my biggest investing goals over the last few months has been diversification. I've been caught horribly offsides when crude oil prices plummeted, as well more than half of my portfolio was energy related. I thought I had diversification because I had some oil, and some gas. I had some upstream, some midstream. Well, I was proven wrong as the whole energy complex went crashing with the price of Brent Crude. It was a lesson I shouldn't have had to learn, because as any good investor knows, diversification is the only free lunch. I ignored it and got killed.

But switching my energy positions now would be akin to selling at the bottom, which would have meant committing yet another cardinal sin. Instead, I've striven to 'build around' my mistake by reinvesting dividends and new cash into non-energy investments when those investments become reasonable enough.

Today I opened a new position in Ventas Inc (NYSE: VTR). Ventas is a senior-living REIT that pays a solid, growing dividend, and I'm happy to have it in my portfolio once again. I sold all shares in another account back when Ventas was a lot higher, as my journal should reflect. This is a solid business with a very long runway for growth. It is reasonably priced right here, and I get the added benefit of medical-sector diversification.

Sold Ventas, Public Storage. Piled into AT&T

Today I sold off two of my REITs: Ventas (NYSE: VTR) and Public Storage (NYSE: PSA). These REITs are all up on lower interest rates more than they are up for fundamental reasons. Both REITs are well above their historical price/FFO ratios. I had 20%-30% gains on both of these and I decided to cash those in.

I took the proceeds from both and plowed them into AT&T (NYSE: T), which is yielding a healthy 5.6% and is below its average price to earnings. AT&T is now the largest holding in an IRA which I manage for a family member (Kinder Morgan Inc. is #2).