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