Libor Vasa @liborvasa: "Dear Followers, Dear Copiers, Although June..."

Czech Republic

Dear Followers, Dear Copiers, Although June did not bring any single major event with a direct negative impact on the portfolio, investor sentiment shifted noticeably throughout the month. Growing concerns about the return on the enormous investments being made in artificial intelligence led to a rotation within the technology sector. It appears that many investors are moving capital away from companies investing heavily in AI with the expectation of future profits and toward companies that are already benefiting from the AI boom today—primarily semiconductor and chip manufacturers. As a result, the Magnificent Seven experienced one of their sharpest monthly declines in recent memory, and this was reflected in the portfolio as well. Overall, the portfolio declined by almost 7% during June. Naturally, no investor enjoys seeing a month like this. At the same time, I don't consider it a reason for concern. Market volatility is a normal part of long-term investing, and periods like these are exactly when discipline matters most. Falling prices create opportunities to buy quality companies at more attractive valuations, and that is how I approached the month. Because I had kept part of the portfolio in cash following profitable exits in previous months, I was in a good position to open several new investments. On June 8th, I opened a position in $AMZN (Amazon.com Inc), followed by $AAPL (Apple) on June 9th, $META (Meta Platforms Inc) on June 15th, and $GOOG (Alphabet) on June 23rd. All of these companies had been affected by the broader sell-off, and I believe I was able to purchase them at attractive prices. At the time of writing, $AMZN remains down by about 0.5%, while the other three positions are already showing gains ranging from 3% to 5.2%, suggesting that the sell-off may have been temporary and that market confidence is beginning to return. I also opened a position in $SPCX (Space Exploration Technologies Corp) on June 23rd. Following its IPO, the stock rose rapidly before giving back much of those gains. That created what I believed was an opportunity to buy the company stock at a valuation closer to its intrinsic value. So far, the decision appears to have been the right one, with the position already showing a gain of more than 9%. Looking ahead, I hope the weakness we experienced in June will gradually reverse and that these newly opened positions will continue to appreciate. At the same time, I remain fully aware that further declines are always possible. Temporary drawdowns are simply part of equity investing, and they are something every long-term investor must be prepared to accept. I wish all of my followers and copiers a wonderful summer, and I hope you enjoy your holidays and vacations. Best regards, Libor Vasa

Not investment advice. The author may have financial interests in the mentioned instruments.