$100K Portfolio: Recent Changes and Promising Investments
Table of Contents:
- Introduction
- Portfolio Overview
- Performance Comparison with S&P 500
- The Philosophy behind the Diary Portfolio
- Transparency and Learning
- Mistakes and Wins
- Snowflake: A Short-Term Trade
- Crash after Earnings Report
- Tremendous Growth and Weak Guidance
- Coupang: Potential Long-Term Holding
- South Korean eCommerce Market
- Growth Metrics and Valuation
- Intel: Betting on the Comeback Story
- Cheaper Valuation and Growth Potential
- Comparisons with Competitors
- Tesla: Core Holding for the Future
- Volatility and Controversies
- Growth Expectations and Valuation
- Apple: Stable Compounder with AI Potential
- Services Segment and Shareholder Yield
- Next iPhone as an AI Phone
- Conclusion
- Resources
🔮 Cracking the Stock Market: Building a Winning Portfolio
Introduction
Welcome back to another episode of "Cracking the Stock Market," where I take you through my journey as an investor. In this week's update, I will be sharing the latest additions to my portfolio and discussing the reasoning behind each decision. So, let's dive in and analyze the performance, trades, and potential of the companies in my diary portfolio.
📈 Portfolio Overview
To provide some context, let's compare the performance of my portfolio against the benchmark S&P 500. Currently, my portfolio is underperforming, as it has only gained 1.25% while the S&P 500 has soared by 3.24%. However, it's important to remember that this journey has just begun, and short-term fluctuations shouldn't be our primary concern.
📔 The Philosophy behind the Diary Portfolio
Before we delve into the specific companies, let me reiterate the purpose of this diary portfolio. It is designed to mimic my real-life investments, acting as a transparent record of my trades and thought processes. It is not intended for editing, but rather to provide an opportunity for learning from both my mistakes and wins.
💡 Snowflake: A Short-Term Trade
One of the recent additions to my portfolio is Snowflake. I decided to buy the dip after the stock crashed following its earnings report. While the guidance was a bit weak, I was impressed by the company's tremendous growth. It is worth noting that Snowflake is not a long-term holding for me. It is purely a short-term trade until I am satisfied with the position.
💼 Coupang: Potential Long-Term Holding
Another company I added to my portfolio is Coupang, often referred to as the South Korean Amazon. This investment requires careful consideration, as I am still undecided about its long-term potential. Coupang is growing rapidly in South Korea and expanding to Taiwan. While it might be a short-term holding, the company's valuation seems reasonable and its prospects appear promising.
🔧 Intel: Betting on the Comeback Story
Intel has been a topic of controversy and disappointment in recent years. However, I believe in its potential comeback. By comparing Intel to its competitors, such as AMD, the valuation becomes apparent. Despite lagging behind in growth, Intel's comeback story and relatively cheaper valuation make it an attractive long-term investment opportunity.
🚗 Tesla: Core Holding for the Future
When it comes to Tesla, it hardly needs an introduction. As a long-time Tesla investor, I have witnessed the highs and lows of this remarkable company. While Tesla's short-term volatility and controversies may cause concern, it remains a core holding in my portfolio. The growth expectations, despite currently paying a premium, make it a compelling investment for the future.
🍎 Apple: Stable Compounder with AI Potential
Last but not least, I added Apple to my portfolio. As a solid compounder, Apple offers stability and consistent performance. With the recent news of Apple not pursuing the electric car market, I believe the company can focus more on its core offerings, particularly an AI assistant for the iPhone. The services segment, shareholder yield, and potential future innovations make Apple an attractive long-term investment.
💼 Conclusion
In summary, my portfolio consists of 11 positions, including cash reserves. While the market is at all-time highs, I take a patient approach in building my positions. It is crucial to remember that investing is a marathon, not a sprint. By analyzing each company's potential, whether for short-term trades or long-term holdings, I aim to create a winning portfolio.
🔗 Resources:
Highlights:
- The portfolio underperforms the S&P 500, but it's still early on in the journey.
- The diary portfolio provides transparency and learning opportunities.
- Snowflake offers short-term trade potential after a crash post-earnings.
- Coupang's growth in South Korea and expansion to Taiwan present a promising opportunity.
- Intel's comeback story and cheaper valuation make it an attractive long-term investment.
- Tesla, despite its volatility and controversies, remains a core holding for future growth.
- Apple's stable performance, services segment, and AI potential make it an appealing long-term investment.
FAQ
Q: How does the portfolio compare to the S&P 500?
A: Currently, the portfolio is underperforming the S&P 500. However, it's important to remember the journey has just begun.
Q: Is Snowflake a long-term holding?
A: Snowflake is a short-term trade. Once satisfied with the position, it will be sold as it doesn't fit the long-term portfolio goals.
Q: Why invest in Coupang?
A: Coupang shows potential for long-term growth in the South Korean eCommerce market and its expansion to Taiwan.
Q: What makes Intel an attractive investment?
A: Intel's comeback story, cheaper valuation compared to competitors, and focus on innovation and data centers make it compelling for the long term.
Q: Why hold Tesla despite its controversies?
A: Tesla offers significant growth potential and remains a core holding for future innovation in electric vehicles and renewable energy.
Q: What makes Apple an appealing investment?
A: Apple's stable performance, growing services segment, shareholder yield, and potential for AI innovation make it an attractive long-term investment.
