Yesterday I asked if my portfolio setup was good to put 300k into: post
Here’s my portfolio that I’ve tweaked a bit:
BRK- 20%
FB- 8%
GOOG- 8%
VOO-7%
MSFT- 5%
CRM-5%
DIS-5%
MU- 4%
F- 4%
QCOM- 4%
ADBE- 4%
AMZN-4%
ATVI- 4%
SQ- 4%
PYPL- 3%
NVDA- 2%
U- 2%
TWLO- 2%
BABA- 2%
AMD- 1%
ETSY- 1%
SHOP- 1%
The consensus was if I have to ask Reddit for advice then I probably don’t know enough to be picking stocks:
I do not intend to blindly follow advice from random strangers on reddit. I just wanted to have a dialogue and gain some insights on my investing strategy.
I wanted to see how my portfolio held up to criticism. Rather than criticism of my stock picks, I was told they’re all illegitimate because I haven’t done enough research.
I did not pick a bunch of random stocks then ask Reddit if they’re good. I read up on each one, checked the prices and some fundamentals, then decided to add it. I am certainly no expert. No retail investor is an expert. However, I’ve been investing since 2018. I still have a lot to learn. But the saying goes: just pick good companies. I believe I’ve picked mainly good companies, some slightly risky but at a lesser value.
Here’s my thesis for some that have gotten a lot of hate:
BABA- this is by far the most hated stock and it reflects in the price. The business itself is solid and growing. The Chinese vice premier has agreed to work with regulators to prevent delisting. Much of the regulatory crack down on baba via anti-trust has passed. They’ve been fined hugely, Ant group IPO ruined and Jack Ma is out. The CCP would not go far enough to completely ruin baba. While their actions seem devastating, it shows they’re not willing to bankrupt BABA when they easily could have. The CCP’s power is a result of the massive economic growth they’ve undergone. Citizens are being lifted out of poverty and kept content enough to tolerate the CCP. It is in the CCP’s best interest to maintain this growth as it is why they’re still in power. They will not shoot themselves in the foot invading Taiwan or cracking down on VIE structure. Covid lockdowns will eventually blow over as they have around the world. Lockdowns are always temporarily. Plus stimulus money is pumping.
PYPL and SQ are somewhat similar with cash app and Venmo. However SQ is more for in store payments while PayPal is for online things. I figured it can’t hurt to be in both in case one does poorly.
FB’s ad business is still highly profitable despite apples privacy rules. Their stock is beaten down, siting at a good value. Plus instagram and WhatsApp are huge thriving platforms. The Metaverse is the cherry on top. Their edge in making VR tech puts them way ahead of the curve. Zuck is great with capital allocation.
CRM is used at my work and it’s a great platform. I’ve heard from other people that use it, they can’t live with out it. Businesses get sucked into the CRM eco system. With it having a wide moat and high user retention, rising earnings, it think it’s a better to have a larger stake.
Beating the market is unachievable for 99% of people:
I think this is misleading. People can beat the market. 13 year olds can beat the market. It’s really about picking good companies. Brands and names you know and use. Things you can attest have good products. Aside from my justifications on those few tickers I selected to explain, almost everything in my portfolio sells a product I’ve used.
Unity has an amazing unreal engine 5. The platform is unmatched for game development. I’ve played many quality games developed through their platform. While they have that 100 million dollar AI problem, that does not reflect the longterm success of the company. While they retrain the AI, they will be able to expand and improve their existing tech.
Sorry I’m summarizing a lot because I’m just trying to show I know their products.
Adobe- photoshop, premiere pro, creative studio. All amazing software.
Ford- I’ve driven fords all my life!
QCOM- their chip is in my phone
PYPL- I use Venmo and PayPal all the time.
SHOP- it’s easy to create stores and I’ve sold some products on here. Very user friendly with great customer support.
I could go on.
Lastly,
My portfolio is tech heavy in a market that is hostile to tech.
That’s the point!!! I don’t want to be in consumer staples which have ran up a ton and barely dropped. Tech, with more room to tank, is becoming cheap. Investing during a recession is the best time to invest. It’s not worth buying stocks that have barely pulled back, that defeats the whole purpose of buying the dip. Yes, I am catching a falling knife. That’s why I will DCA. I will likely tolerate large losses before things turn around. That’s ok. The moment things turn around, these stocks are nearly guaranteed to rip higher than my average. They always bounce back. Even if some don’t, tech as a whole will recover. Meaning a majority are going to bounce back, canceling out any duds.
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