This article was first sent to Jim Cramer’s CNBC Investing Club members. Get the latest updates directly to your email subscribe here.)

Our position was vacated in Estee Lauder(EL), 100 shares sold for $365.67. After the trade, Charitable Trust was unable to maintain a position at EL.

Estee Lauder had been purchased by us earlier in the year because we considered it one of the most important reopening play, due to our conviction that people desire to feel their best once they are out of their houses and back in social situations. Also, we thought Estee Lauder was one of the main beneficiaries of Covid’s loosening restrictions like travel and mask mandates.

The thesis came out exactly as expected. Estee Lauder reported strong results for its last quarter. It saw strong double-digit growth across categories such as skin care, perfume, makeup, and travel demand.

EL is still a good reopening play. However, it’s important to remember that the omicron version has been rapidly spreading. Estee Lauder has a primary market in duty-free, so the future slowdown in travel could make near-term results a bit optimistic. The potential return to mask mandates, and the restrictions on social gatherings could further complicate the near term earning story.

Our patience and commitment to long-term investments mean that we can handle any temporary setbacks in our earnings stories. This is the problem. Estee Lauder trades at an all time high. This is unlike many stock markets right now. Shares falling 5% from peak could be argued that Covid uncertainty was price in. Despite the premium price-toearnings multiple, EL managed to weather recent volatility.

Our goal is to not be greedy in uncertain times, so we are going to sell our Estee Lauder stock near the peak for a gain of around 22%.

While we are unable to exit the company today, Estee Lauder remains a strong and well-managed business that is long-term winner within its industry. We will monitor the stock closely for any pullbacks at levels that provide a higher risk-reward ratio.

This sale also frees up space in the portfolio to accommodate a new potential name. This is an example of one the many portfolio management techniques we described last Thursday in our inaugural Investing Club meeting. Every portfolio manager should limit the amount of stocks that they have at any one time. This is something we strongly believe in. If your portfolio is constantly adding new stocks without taking any off, it could lead to you cutting down on the daily homework necessary to manage your portfolio. If we want to buy something new — and we are always on the hunt for new ideas — we are going to part with something in the portfolio that has a less attractive risk-reward.

Separately we would like to bring your attention the huge move currently underway at United Parcel Service (UPS). UPS enjoyed a good day on Wednesday, after Citi raised its rating for the stock to purchase and raised its price target from $250 to $250. This was partly due to Carol Tome’s conviction in her “Better, not Bigger” strategy. Positive action continues through Thursday with shares moving higher, as investors focus on businesses with solid fundamentals that trade at reasonable earnings multiples. UPS might also trade higher as many anticipate what they hope will be an “not as terrible as feared earnings release”. FedExAfter the closing bell, tonight’s (FDX).

Although we aren’t trying to call the FDX quarter on their quarterly, the inconsistency of their track record, and difficulties with cost management have led us to want to be more protective when dealing with UPS. This is especially true with UPS stock rising nicely these past days. If we could trade, 100 of our 725 UPS shares would be trimmed.

As a reminder, we are restricted from trading any stock that Jim mentions on TV for three full days following the mention. Although we cannot make the trade for the Charitable Trust, our restrictions will never prevent us from telling the Investing Club what we would buy or sell and when we would do it.

My Charitable Trust now has an official home at the CNBC Investing Club. This is where I share my market intelligence and every move that we have made for our portfolio. Action Alerts Plus has ceased to be affiliated with my writings and the Charitable Trust.

 You will be notified by Jim Cramer if you subscribe to CNBC Investing Club. Jim may then make a trade. Jim will wait 45 minutes to send a trade alert, before buying or selling stock from his charitable trust portfolio. Jim may wait 72 hours to execute a trade if he has discussed a stock with CNBC TV. See here for the investing disclaimer.

(Jim Cramer Charitable Trust has been UPS for a long time.