Libor Vasa @liborvasa: "Dear Followers, Dear Copiers, May brought..."

Czech Republic

Dear Followers, Dear Copiers, May brought another positive result for the portfolio. Its value increased by 1.38%, further offsetting the losses accumulated during the first months of the year. The broader market, however, experienced an even stronger growth. At the beginning of the month, I closed my position in $AAPL (Apple) with a gain of 11.77%. The trade developed largely as expected, and the return was sufficient to justify taking profits in accordance with my long-term strategy. Later in the month, on May 21st, I opened a new position in $NVDA (NVIDIA Corporation). At the moment, this position is showing a loss, and I am considering increasing it. Despite the company’s extraordinary growth over the past few years, I do not believe its potential has been fully exhausted. The recent results were strong, and in my view, some investors have simply become accustomed to perfection, expecting even better numbers. Those expectations seem somewhat unrealistic to me, especially given the scale of the company’s recent success. Unfortunately, the portfolio’s growth did not keep pace with major indices such as the $SPX500. This is largely a consequence of decisions I made earlier this year to close positions that subsequently continued to rise. A particularly notable example is $INTC (Intel), which I closed on April 23rd. Shortly afterward, the stock price surged dramatically, at one point nearly doubling from the level at which I sold. It is tempting to look back and regret such decisions, but I think it is important to remember that at the time there was no certainty that the upward trend would continue. Closing a profitable position was fully consistent with my long-term strategy. Investing is not about predicting the future perfectly; it is about making reasonable decisions based on the information available at the time. For that reason, I do not regret the trade. Looking ahead, I would not be surprised to see some correction in technology stocks that have experienced particularly strong gains in recent months, such as $AMD (Advanced Micro Devices Inc) or $SNDK (Sandisk Corp/DE). Should that happen, new investment opportunities may emerge. The portfolio is currently in a good position to take advantage of such opportunities, with sufficient liquidity available for future purchases. I wish all followers and copiers a pleasant start to the summer and, hopefully, a successful few months ahead. Best regards, Libor Vasa

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