Immediately after the opening bell, you sell 100 shares of Broadcom stock for approximately $367. After the transaction, the Jim Cramer Charitable Trust will own 415 shares of Broadcom stock, reducing its percentage of the portfolio from 5.3% to about 4.3%. We made plans on Friday to reduce our position once the trading restrictions were lifted. The stock is having a solid week, headlined by the chipmaker securing a long-term custom accelerator and networking supply deal with Alphabet through 2031. The company also expanded its supply agreement with Anthropic to 3.5 gigawatts of TPU capacity starting in 2027. Last week’s 18% rise in stock price gave Broadcom the largest position in the portfolio. Historically, we have managed our charitable trusts to ensure that no single position becomes too large, using a threshold of 5% or more as a general guideline for appropriate size. This is the same discipline we used when we cut Goldman Sachs last week. Goldman fell in premarket trading after missing out on much-anticipated fixed-income trading revenue, even though it reported better-than-expected revenue and earnings per share in the first quarter. I’ll explain more about Goldman later. While we still have a positive long-term view on Broadcom, we are downgrading it to a 2 given the recent stock price rally. This sale represents a gain of approximately 319% on the Broadcom stock purchased in September 2023. (Jim Cramer Charitable Trust is long AVGO. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you can receive trade alerts before Jim makes a trade. trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
