Sold share in Gannett (GCI) for 27 percent profit
In January of 2015, I became part owner of a Brazilian Utility company: Companhia Energética de Minas Gerais S.A (CIG) for $4.51 a share. The company controls 12% of the utility market in Brazil, a country with $4 trillion in GDP. The company with a decent dividend yield looked conservatively priced. I sold it in May 2015 for a 16% return because I realized that holding it violated one cardinal rule of sound investing: one should understand the company he purchases. I attempted to understand how the company made money and what were the key variables affecting growth by reading its 10-K report but could not quit dissecting the company’s myriad of joint ventures and affiliated companies.