Have done a bit of trimming of my portfolio. Dropped positions in Alibaba and Microsoft as I feel there are better growth names.

Sold:

  • 70 shares of Alibaba at 265.10
  • 40 shares of Alibaba at 265.02
  • 50 shares of Microsoft at 213.12

The US government is set to vote on demanding oversight over the accounts of Chinese companies. I think it will pass, given the mood against China. While some would argue that even if they don’t comply, there is a three year compliance period. Hence, there shouldn’t be any concerns.

Nonetheless, I feel the risk and reward have been altered, and I’m fine to leave at this point. Took a 5% loss, or about USD $1,720. This fits my style of taking small losses early when the stock doesn’t go up. An increase of stock price after I bought it, even if small, helps me to build conviction. Alibaba wasn’t doing that, so I sold.

I only had a small stake in Microsoft, having suffered some FOMO when I sold my entire stake earlier. This is something I often do, buying in again when the stock price goes up and I realise my selling thesis was wrong. I have done this with Amazon, Tesla, and Nvidia before. I was afraid of doing the same thing with Microsoft. However, it has been stuck for a while, and I don’t think there is too much upside now. Small loss of about USD $50.

Buy:

  • 300 shares of Palantir at 29.62
  • 40 shares of Paypal at 209.58

I bought Palantir at classic bad timing, at the peak of the day. After I got it, it fell 14%. It recovered since, but still an easy couple of thousand could have been saved. Sometimes you are lucky and sometimes you are not. Not much can be done, as we won’t know when things will turn. Still, I believe Palantir is a multi-bagger, and I feel comfortable with a larger position. My average cost is about $17. Besides, the memes on Palantir alone make it worth the while.

I added to the position on Paypal as it has been going well. It takes me a while to warm up, and I tend to start small positions first while I’m getting to know the stock. Once I have some small short-term success, I keep adding more.

An order for Square was put in as well, but I discovered it had expired unfilled. This is why I tend to put in high bids, so I don’t waste time and money. I have a small window to make trades before needing to put my kid to sleep, so I have to rush sometimes. Wasted a few hundred dollars.

Stock market is losing a bit of steam and some big tech names have been trading sideways. Still, I’m not too concerned. There can be months of lull periods, before another explosive move up. The catalysts are quite positive, even if others might not realise it. Just stay invested.

8 thoughts on “Stock Transactions Dec 2020

  1. Would be curious to know your selection process for your portfolio, especially Palantir (maybe in a new post?).
    Didn’t think much when Palantir was listed up in your article, but it popped-up in some screeners as a stock with very high option premiums, and is also a small part of the ARKW etf portfolio.
    I myself stick to indexed ETFs for safety & stability, and I’m curious that you are heavy into individual stocks.
    I am sure you would have given much thought to your strategy and have put in place safety nets.

    1. Hi portalsoma

      I mainly invest in things that I liked, so I started in Amazon and Google. I also consume a lot of investment news, including FT, CNBC, and forums. Discussions on Youtube and Reddit got me started on Palantir and Tesla. I read up on them myself, and felt what they did was important. I have a lot of respect for Ark too, so I pay attention to what they buy.

      Your ETF strategy is not wrong and quite likely to beat my stock picks over time. I tell my friends and family to buy ETFs. I definitely won’t tell them to go into Palantir. Too much volatility and they don’t have the risk-on mindset I have. The reason I can take risk is that my portfolio is large and my expenses are low. So life doesn’t change if my portfolio goes down 30% or 50%, I just need to draw $2k a month for a comfortable lifestyle. Another substantial chunk of my monthly income comes from insurance. I can afford to sacrifice stability to get better returns in the long-term.

      Margin-wise, I only use $200,000, which is a fraction of what I can actually use. And I can pay it off immediately with my fixed income portfolio, which is quite stable. So I think my risks are managed well.

      Thanks for commenting!

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