We're exiting a financial already on its way out and adding again to our newest stock

CNBC Finance

3 min read

We're making more two trades. We are exiting our position in BlackRock , selling 35 shares at roughly $1,050 each. In addition, we are buying 90 shares of Cardinal Health at roughly $224 each, increasing its share count in the portfolio to 260 and weighting in the portfolio to 1.5% from 1%. These moves are helping us reposition the portfolio with a more defensive tilt, while preserving our sizable cash position. We added to our Alphabet position early Tuesday. Now, we're swapping out the rest of our BlackRock position, making our second sale in as many days, to buy more Cardinal Health. The net result of these three trades will be neutral to our cash position and return us to slightly over a 15% weighting in the portfolio. As discussed in Monday's trade alert, we're moving on from our BlackRock position because of pressure on the private markets industry. While pressure has been mounting for months, peer Blackstone allowing investors to redeem a record 7.9% of shares from its private credit fund is the latest sign of distress. (Blackstone is a different company and trades under the ticker symbol BX.) BlackRock's private markets business is not its primary fee driver. But we had owned it on the belief that private markets would become more mainstream among retail investors and increasingly find their way into 401(k) plans. Recent weakness across the industry could create resistance to that broader adoption. From Tuesday's exit, we will realize an average gain of about 7% on stock purchased between February and April 2025. We're taking a portion of our BlackRock cash proceeds to add to our newest name , Cardinal Health. We view the broader market pullback as an opportunity to buy more of this drug distributor and medical supplies provider that generates nearly all its revenue inside the United States. With the market increasingly concerned about a potential inflation spike driven by rising energy prices, we're adding to this defensive, economically resilient health-care company, which stands to benefit from the aging U.S. population. (Jim Cramer's Charitable Trust is long CAH. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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We're exiting a financial already on its way out and adding again to our newest stock

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