Finally I sold my General growth properties last week. I bought it around 67 cents and finally sold it around 21 dollars. As many of you know that General growth propertie is second biggest mall owner is US. It has liquidity problem in 2009 and the stock tanked from 60 dollars to 67 cents. While I was searching for deep value, I found GGP. When Bill Ackman explained that it will go to atleast 15 dollars, stock started rallying.
Here are few learnings
- you will always find buyers for good business
- In a restructuring game, hedge fund titans like Bill Ackman can really change the game. He really helped the stock price by not selling this cheaply to Simon propery group
- you could also buy the bonds (probably was a safer route). I did not use that strategy
- Finally patience and it almost tanked 50% couple of times and you need to have a strong stomach
- Understand the valuation so that you don't need to sell when it is a two bagger or 3 bagger and wait until it reaches if fair value
- Only when there is a lot of uncertainity in market, you will find good values
I am totally spoiled now and I hope I will find atleast a 10 bagger in next 5 years
Here are few learnings
- you will always find buyers for good business
- In a restructuring game, hedge fund titans like Bill Ackman can really change the game. He really helped the stock price by not selling this cheaply to Simon propery group
- you could also buy the bonds (probably was a safer route). I did not use that strategy
- Finally patience and it almost tanked 50% couple of times and you need to have a strong stomach
- Understand the valuation so that you don't need to sell when it is a two bagger or 3 bagger and wait until it reaches if fair value
- Only when there is a lot of uncertainity in market, you will find good values
I am totally spoiled now and I hope I will find atleast a 10 bagger in next 5 years
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2 comments:
You sold your GGP for 21 dollars recently? Hard to believe, the stock hasn't traded anywhere near $21 even before the HHC spin off. No doubt it's been an incredible CH11 recovery story. I got in at $0.45, sold half when it hit $4 and kept the other half riding long - still own it today and I kick myself for having sold half at $4!
yeah, it was an unbelievable ride. Almost felt like selling several times, but as the only reason I did not sell because they had good properties. I think there is still some upside atleast another 20% upside but I need to get out as I thought it reached most of the value
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