I think you were right to re-balance your portfolio.[You still have twice as many as me!].In my recent sell down I sold 20% of our share portfolio.I did not sell any HNZ ,so HNZ now make up 18.2% of our portfolio.
As you point out The Rural person will keep paying for the tractor.As a great deal of HNZ lending is to "the productive" sector I see few bad debts there.At a presentation I went to they said they had fewer problems with motor vehicle finance than housing.
" Guy needs his car to get to work,no work,no income."
For us as investors we are buying a very good company,at near asset backing,with strong earnings growth,with good equity and liquidity.We are buying a company on one years future earnings [$34 to $37mil],paying a good dividend.Not what it may,or may not earn in five years time.
We are not buying an un profitable company,that may grow earnings,that may become profitable,that may require more funds from shareholders,that has only one source of income,and that has no prospects of paying a dividend in the foreseeable future.
Plus we have the safety of HNZ being accountable to The Reserve Bank.
All makes good sense to me.
As Buffett would say "when the tide goes out,we will see who is swimming without their trunks on."