Buying Berkshire and Verizon stock, selling Activision as move toward quality – L. Eriksen (BRK.B, VZ, DOV, ATVI)

Author: Leif Eriksen
Covestor model: Performance With Protection
Disclosure: Long BRK.B, DOV, and VZ

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I have fared slightly better than the S&P 500 so far in 2011, thanks to strong showings from a handful of stocks including QCOM and ATHR (acquired by QCOM in January).  As numerous market watchers have stated ad infinitum, the market is suffering in the near term from being somewhat overbought.  If I were a trader, I suppose I would try to take advantage of the expected volatility.  I’m not, so my current strategy can only be described as “steady as she goes.”

In preparation for expected volatility, I’ve done some recent portfolio strengthening by adding high quality holdings such as BRK.B, DOV, and VZ while shedding smaller, more volatile holdings such as ATVI, EXAR, and TTWO.

I believe the market will move towards quality as the year wears on and volatility will take a toll on smaller issues.  However, as always, I’ll be on the lookout for special situations that have the potential to deliver an exceptional return.

Until next month, many happy returns.