๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐ฟ๐ผ๐๐ (๐ฎ๐ฌ๐ฉ๐ โ ๐ฎ๐ฒ๐ฉ๐ ๐๐ผ๐)
๐ Down 1.53% last week!
โ Our biggest portfolio contributor so far being $IDT (IDT Corporation) at a change of 75.08%!
๐ฐ Portfolio Up 1.72% MTD
๐ก ๐๐ผ๐๐ ๐๐๐๐: The moment everyone was waiting for finally occurred last week. $NVDA (NVIDIA Corporation) reported โ and it beat on both revenue and earnings! Whilst this news excites the market we can see clear evidence of over exuberance. For example, during their latest earnings report Nvidia announced a 10-1 stock split, which has been met with over excitement in anticipation of further increases in stock price. But what is a stock split? Well, itโs in the name. When a stock priced at $1,000/share receives a 10-1 stock split, each owner of each share will receive 9 more and the share price will drop to reflect the issuance of these new shares (bringing the share price down to $100/share). This process make a companies shares โmore accessibleโ to the retail investor, without making any change to the companies fundamentals what so ever. Not something a long-term investor should care about.
๐ก ๐๐๐๐ ๐๐๐๐: News such as the above will likely continue to flame the fire of excitement this week, however I would like to leaving you with a much needed warning. You can pay too much for a good thing! There is no doubt that Nvidia and other such companies are fantastic businesses, and yes I would very much want to own them someday, but with current valuations (such as Nvidiaโs PE ratio of 62), we can expect either very little long-term return or a short sharp drop in share prices. Neither of which are risks we should be willing to take.
Please consider following or copying me and feel free to ask me any questions! It's going to be volatile year but be patient and we'll see what the coming years will bring us.
www.etoro.com/people/davidbumpstead/portfolio
For articles and insights into value investing and my investment strategy please visit www.amalgamated-value-investing.com/$SPX500$NSDQ100$UK100$GER40... Show More
