20 shares of Tesla at $498
20 shares of Tesla at $450
17 shares of Nvidia at $577
$15 shares of Nvidia at $523
Total: USD $36,914
These transactions were completed mid-week, just before the drop on Thursday and Friday. They are trading 10% – 20% lower today. Ouch.
I think my investment thesis is still intact though. Tesla should go into the S&P 500 by the end of Sep, and when that happens, it sparks huge demand for their shares.The biggest buyers will be the passive ETFs, which need to quickly re-balance to add what will be the 7th largest company in the index.
I have also bought more Nvidia. Digitisation, gaming, and AI didn’t stop because of a silly drop in the stock price. Nvidia announced their new generation of graphics cards and the gaming community is freaking out. It’s the greatest generational leap in performance, without a huge price jump. It will sell very well. I’m comfortable to have Nvidia be a large portion of my portfolio, after Amazon and AMD.
It definitely leaves a sour taste in the mouth to have bought in just before a crash. But it can’t be helped, and it’s impossible to predict. Overall, it’s still better to be invested than not.
This is also a good test of my risk management strategies. My margin is quite high at around 200%, meaning the portfolio needs to drop over 30% before I get margin called. In addition, I can call upon $50,000 in cash reserves. If things get real bad I can sell my S&P 500 ETF (which has no margin value) and Temasek bond. So I should have decent buffers.
I might be more quiet on the transactions side as most of my ammo is used up. But I do surprise myself sometimes. I’ll be sure to let you guys know.