I think it was both. As you know, I had been getting increasingly nervous about multiples on many stocks for quite a while (as I remember you had been as well).
I (very fortuitously) started selling soon in the new FY, before the proverbial hit the fan. Was this purely lucky timing? I'm not sure. I think it safest to assume that it was.
When the correction really hit, I kicked myself that I hadn't done so more aggressively. But it is so hard to go against a party that's in full swing! (even for a grumpy curmudgeon like me, I hate to admit...).
Nevertheless, I suspect that if my portfolio had not been so heavily exposed, I would have done nothing. So, in no particular order (because I don't know the order), this is what drove my actions:
Stretched valuations.
Abundant over confident talk by Buffett devotees about high prices always being justified by quality, blah blah.
My increasing anxiety about the domestic housing and credit cycle, and seeming complacency about such, especially with looming uncertainty due to RC.
A sense that value was emerging in pockets of global markets, and the opportunity this presented to diversify ("robustify") my portfolio.
The fact my portfolio was heavily exposed to domestic discretionary and building expenditure.
DLX Price at posting:
$6.57 Sentiment: None Disclosure: Not Held
