3 UK stocks that Fools have recently sold

We don’t hide the fact that ‘selling’ is part of the investment equation. Three Fools recently waved farewell to these UK stocks…

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

There are different reasons for investors deciding to sell shares in some of their UK-listed stocks. It might be because the original long-term investing thesis has changed. Perhaps it’s due to seeing better value elsewhere.

Let’s find out why these three Fools parted ways with some of their investments.

boohoo Group

What it does: boohoo Group designs, markets and sells clothing, shoes, accessories and beauty products in the UK and abroad.

By Paul Summers: As much as I hate to admit defeat, I recently dumped my shares in battered fast-fashion firm boohoo (LSE: BOO). 

My timing may turn out to be spectacularly bad. A cut in interest rates this year could bring buyers back to the growth stock. The company also owns a truckload of recognisable brands, such as Debenhams, where trading may improve.

However, I misjudged just how much of the threat rivals like Chinese juggernaut Shein would become when I bought. Tellingly, younger and far more stylish members of my own family no longer visit the company’s site. Questionable corporate governance has long been an issue too.

One saving grace to all this is that I previously banked some great profits on boohoo shares. But this latest experience has served as a fresh reminder that nothing lasts forever and that staying diversified is essential as a retail investor.

Paul Summers has no position in Boohoo Group.

Rightmove

What it does: Rightmove operates the UK’s largest property search platform.   

By Ben McPoland. I don’t often sell stocks but towards the end of last year I offloaded my holding in UK stalwart, Rightmove (LSE: RMV). It was just before the shares plunged in response to CoStar Group acquiring rival UK property website OnTheMarket. Obviously I had no inkling this sell-off would happen and thought it was a bizarre market overreaction.

Anyway, the share price has now rebounded and we’re back to a 1.5% dividend yield. Revenue and profits have been averaging around 6% since 2017, and I eventually found this underwhelming.

The new(ish) CEO has promised to get that ticking upwards. If so, that should help the share price, which has stagnated for the last four years.

Now, I should say that I still think Rightmove is a terrific company. It has around an 85% share of the UK property search market and boasts incredible profit margins.

Perhaps greedily, I just wanted more bang for my buck (or pound sterling). So I used the cash to invest in Ashtead Technology for faster growth and Legal & General for the ultra-high-yield dividends.

Ben McPoland owns shares of Ashtead Technology and Legal & General but has no position in CoStar Group or Rightmove.

Rolls-Royce Holdings

What it does: Rolls-Royce designs, develops and manufactures aircraft and helicopter engines, combat jet engines, large commercial aircraft, unmanned aerial vehicle engines, and nuclear reactors.

By Harvey Jones. I mostly buy dirt-cheap, high yielding UK dividend stocks that I plan to hold for years and years. My purchase of Rolls-Royce (LSE: RR.) in October 2022 was a rare exception. It was cheap, yes, but wasn’t paying a dividend (and still isn’t).

I decided that after crashing by three quarters, its stock was ripe for a recovery. People were flying again after Covid lockdowns yet the Rolls-Royce share price was still idling on the runway.

It looked risky, though, and I only bought a small stake. Sadly. One year later, I was up 179%.

I needed some ready cash in October and decided to take the win. I felt Rolls-Royce shares had flown too far.

They jumped another 30% in the month that followed, but I’m comfortable with my decision. 

The group now faces headwinds as new CEO Tufan Erginbilgiç battles to drive up prices despite pushback from key customers Emirates and Thai Airways. If the stock dips, I’ll hop on board because I think the longer-term outlook is positive. It’s just overpriced today. Next time, I’ll buy it for keeps.

Harvey Jones has no position in Rolls-Royce Holdings.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

The Motley Fool UK has recommended Rightmove Plc and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Top Stocks

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Best US stocks to consider buying in December

We asked our freelance writers to reveal the top US stocks they’d buy in December, which included two Share Advisor…

Read more »

Investing Articles

Best British dividend stocks to consider buying in December

We asked our writers to share their top dividend stock for December, including two Share Advisor 'Ice' recommendations!

Read more »

Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Smart young brown businesswoman working from home on a laptop
Top Stocks

5 FTSE flops Fools think have further to fall

These FTSE 350 companies haven't fared too well. And unfortunately, five of Fool.co.uk's freelance writers don't have much confidence in…

Read more »

Investing Articles

5 growth stocks under £1 Fools believe will soar

Not all of these growth shares are penny stocks, since -- at the time of writing -- all their market…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Best US stocks to consider buying in November

We asked our freelance writers to reveal the top US stocks they’d buy in November, which included a Share Advisor…

Read more »

Midnight is celebrated along the River Thames in London with a spectacular and colourful firework display.
Investing Articles

Best British value stocks to consider buying in November

We asked our freelance writers to reveal their top value shares, including a Share Advisor 'Fire' stock first recommended almost…

Read more »

Edinburgh Cityscape with fireworks over The Castle and Balmoral Clock Tower
Investing Articles

Best British dividend stocks to consider buying in November

We asked our writers to share their top dividend stock for November, including two insurance companies...

Read more »