[Premium] Topping up for Digital War

I’ve continued to add more Crowdstrike into the portfolio. Unlike Facebook, Google, and Amazon, there doesn’t seem to be a threat from their governments. Rather, governments and MNCs are urged to build up their cybersecurity tools and people. I like that there won’t be political attacks or calls to break up these companies. Cybersecurity will do just fine in both an extended pandemic or recovery environment. The trend of remote work won’t end, and there will be millions of laptops that will need better security.

Bought 80 shares of CRWD at 209.93, bringing my total investment to USD $35,000. I’m comfortable with the size of bet, which is big enough to move the needle.

I had also considered to deploy my funds into ARK ETFs, especially the one focusing on genomics. But I found out from my broker I can’t buy it on my app, and have to call in to place the order manually. And it won’t show up on my portfolio. I found this pretty annoying and decided not to go ahead.

Instead of ARK ETFs, another way I can play is to buy their top conviction holdings for genomics, which are CRISPR Therapeutics or Pacific Biosciences of California. But I hesitated because I have no idea what is good technology here. With Amazon and Google, I use their products and have a decent understanding of how they make money. With gene-editing companies, its impossible. I can’t try it out. Not even a professional knows what will actually work, and most biotech companies are destined to fail. While Cathie Woods has tempted me with the promise that Genomic stocks will outperform Tesla, I may sit this out. As I don’t have capital infusions, I have to sell existing holdings to buy.

But it is harder and harder to find things I can sell. I have a lot of love for the companies in my portfolio like AMD, Tesla, and Amazon. Despite their large position (about USD $420,000), which makes it the most obvious to to sell down, I think I will come to regret it. AMD and Tesla are poised to scale and take over their respective markets. Amazon is practically an AAA cash-like security at this point. Most the world can collapse but Amazon will still be here.

I think I can let go of Paypal and Square, but they are going through a correction now. I’m ok to wait and observe. At my margin valuation of about 250%, its not a desperate need to reduce margin and I should be fine in a correction. Here’s why I’m confident that the way I manage my margin is prudent and enduring.

Hope everyone had a profitable year and I’ll see you in 2021.