I sold 650 shares of Corsair at $33.49. resulting in a loss of 14% or about USD $3,500. Last night was actually a great night and all of my other holdings were deep in the green. But Corsair was in the red and it irritated me to all hell. I always sell my weakest holdings first, and last night’s poor performance just gave me an excuse to execute.
The takeaway for me is to only buy during market panics. I bought Corsair when the market was relatively calm, and it was off its peak by about 10%. Their last earnings report was amazing. I thought that was good enough and went in pretty quickly. It has been in the red ever since.
Corsair is still a good growth stock, and I believe it will continue to rise. But I need to be disciplined about reducing debt and take hard decisions. And the most consistent way of making money is to buy good stocks on deep red days. Few things are as effective. But in order to do this, I have to build up cash or reduce margin. My $294,000 margin on stocks is little higher than what I’m comfortable with, and I want to reduce it by at least $100,000. After Corsair’s sale, I have about $70,000 to go.
I’ll be trimming my holdings as and when there are good opportunities. Likely to take some profit on Amazon and reduce it by about $20,000. As a cash-like security, no real reason for it to be at $125,000. I’m also thinking about selling off all my Paypal. Its performance as a proxy for Bitcoin and other cryptocurrencies has been pretty bad. It’s been falling while the actual cryptos were making new highs. I also have few doubts in my mind that if crypto falls, Paypal will fall too. So a lose-lose situation.
Even though my holdings in AMD and Tesla are the highest and I have the most room to trim there, I don’t want to sell either of them. Both of them are undervalued in my view, and have exciting stories. I like to watch YouTube reviews on CPUs and GPUs, and its clear that AMD is killing Intel. It’s not even close, and Intel has become a laughing stock in the PC world. Despite that, Intel stock has been outperforming AMD’s this past year. It doesn’t make any sense to me. It’s a shame that the market is punishing AMD right now for no reason but really everything is in its favour. Painful to be an AMD shareholder at the moment, but I think our patience will be rewarded.
On the Tesla side, it just seems like every other day that they are coming out with something new or improving their line-up. I was actually interested in picking up a Tesla in Singapore. Their cars are very well-priced, going for about $112,000 brand-new, without COE. And it’s even cheaper considering that it will save a ton of petrol, one of the most heavily taxed items here. If you have easy access to a charger, a Tesla makes complete sense. The luxury car and upper-tier cars will be hit pretty hard once Tesla can scale here. The first shipment is already sold out, and there is a 6-month waiting list. I think this will be repeated across the world, and that’s why I hold the stock. I urged my wife to buy when it fell below $600, as I had run out of cash. But like most things, she doesn’t quite listen to me.
So monitoring these two stocks are just plain fun and interesting.
Showing last night’s portfolio as it was a relief to have everything doing well for once. Finally back up to $1.1 mil, and hopefully I can close out the year at $1.3 mil.
Hope everyone’s portfolio and week is doing well!