Hobson: The Trouble With Vodafone

THE WEEK: Morningstar columnist Rodney Hobson regrets not following his instincts and getting rid of his entire Vodafone stake when the firm exited the US

Rodney Hobson 8 March, 2019 | 9:24AM
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Selling half your stake in a company is a tactic I have rather scorned over 30 years of writing about stock market investing. The only excuse is when you need a limited amount of cash. If you’re selling shares, presumably you fear they will fall, so why not sell the lot? If you think it’s still a worthwhile investment, why aren’t you hanging on to the entire holding?

I made the shillyshallying mistake of going half and half when Vodafone (VOD) sold out in the US, potentially its most profitable area. I should have followed, to its logical conclusion, my view that the mobile telephony giant would struggling to carve out a new niche, as has proved to be the case. Vodafone shares have fallen from 252p four years ago to around 135p now but the real dive has come in the past 15 months.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.