I’ve been a buyer during this rotation out of tech stocks. I feel its silly that suddenly with a vaccine, digitisation and tech doesn’t matter. That airline, bank, and oil stocks suddenly boom.
Even with a vaccine, travel won’t come roaring back quickly. Travel will be expensive, crowded and a hassle when it first returns. Airlines, hotels, and cruises will be burning cash for months. The move towards online shopping and working won’t stop. So I’m happy to buy when the NASDAQ is down.
100 shares of AMD at $78.1
700 shares of Palantir at $13.37
60 shares of Square at $171.8
30 shares of Alibaba at $266
35 shares of Facebook at $289.1
70 shares of Paypal at $189.1
60 shares of Square at $187.5
Total: USD $70,000
Palantir is a bit risky as it has run up 50% in the past few weeks. But I find it has a lot of potential as a big data analytics company. People in the know seem to be saying that it is the most advanced software out there. Earnings are on Thursday and there might be a pullback, but as long as its not horrible I’ll likely be buying more
I have been putting some money towards digital payments, which I think will displace a lot of bank revenue. These are Paypal and Square. I myself use Paypal for purchases on this site. While Square is not familiar to our shores, its doing pretty well in the States.
I’ve continued to pick up more of my favs like AMD, Alibaba, and Facebook. My portfolio is a bit heavy on AMD, but I know they will have a blowout 2021. I follow the gaming and computing markets, and their CPUs are all selling out. Biggest ever launch. They will sell every chip and card they make.
I’m using just a fraction of the margin available to me. My stress test is that with a margin of $200,000, I’ll be able to tolerate a fall of over 50%. Margin would be about $150,000 now. I still can do another round of buying.
It’s definitely painful for the portfolio to go down 10% or so, but I’ve been training to instead look at it as an opportunity rather than a loss of net-worth. With these investments, I hope that its laying the ground for fantastic returns over the next few years.