Have been observing the market, in particular Palantir. It’s seen about a 30% drop from its peak of $38. There are two reasons for the drop, which are the 4Q earnings release and the ending of the lockup period where insiders can sell their shares.
Palantir I believe is one of those stocks which can be a multi-bagger in the years to come. I know how difficult it is to integrate information and turn it into useful insights. Palantir’s main competition is companies building their own internal systems. This is usually a disaster, due to a lack of expertise and politics. Much better to buy it from experts.
Palantir’s main losses came from stock compensation for their employees, which is understandable to reward them for staying all these years. I’ve read through some of their Linkedin profiles. Pretty much all high achievers from what I can tell. It’s required to get the best people in this sort of business. One good data scientist is worth a whole team of average data analysts.
In the short-term there will be plenty of ups and downs, but in the long-term its hard for me to imagine that Palantir is a poor investment.
With the lockup expiring last night, I took it as the best time to scoop some up. Added 500 shares at $25.85. ARK was buying yesterday and today, which gave me a bit of assurance that the most successful fund manager of our times thinks these prices are a bargain.
I’ve also picked up a bit more Paypal. This would be my Bitcoin proxy. Haven’t decided to buy actual Bitcoin, and I’m more likely to wait for the next significant dip. I’m also too grouchy and old to learn a new platform. In the meantime, quite comfortable to hold Paypal. Added to my existing investment with 40 shares at $290.61. Total investment is now about USD $37,800, which I think is “meaty” enough.
Have been holding some reserves for these sort of opportunities. I will be breaking my own rules about having a margin maintenance of at least 250%, and it will dip a bit lower after these purchases. It shouldn’t last long, and I’m thinking about raising cash by selling stalwarts like Amazon and the S&P 500 ETF.
Despite the recent market slump, I still see a positive environment for the next few years. Probably not the kind of gains seen in 2020, but still very accommodating, especially for innovative stocks. The risk factors are higher taxes and interest rates, but these won’t be implemented anytime soon. So in the meantime, keep buying and holding.