Saturday, December 29, 2018

NVIDIA in - Last ETFs out

There has been considerable changes in portfolio due to recent downward slide in stock market.

  • Increased technology stocks exposure
  • Have now concluded selling all ETFs

I am long term bullish on the technology stocks over pretty much any other sector and felt that the recent series of slides and crashes offer a good point to increase our exposure into U.S. technology stocks and semiconductor stocks in particular.

NVIDIA (NASDAQ: NVDA) is the latest addition to our portfolio. Both current P/E and forward P/E of NVIDIA have come down to below 20 (source: Finwiz.com). It seems like a reasonable multiple given the 'E' or earnings part of the ratio will hold.

Adding NVIDIA is part of my plan to increase our semiconductor exposure while hedging bets over larger amount of companies than before. Right now, especially the 'commodity' end of semiconductor stocks offers significant short term risk and drama while market speculates over timing of the cycle bottom and how deep it will be this time.

Overall, the share of U.S. technology stocks in portfolio have increased now significantly over last few months with addition of Apple (NASDAQ:AAPL) and NVIDIA and additional investments into some of our existing semiconductor positions: Micron Technology (NASDAQ: MU) and Western Digital Corporation (NASDAQ: WDC).

These moves have been mostly funded by exiting all ETF positions. Thus, the performance of the portfolio is now down to 26 individual stocks out of which 10 largest positions make up over 60% of the entire portfolio.

More about the portfolio after we get year 2019 going..

Wednesday, December 5, 2018

New position: Apple Inc.

I have iniated a position in Apple (NASDAQ: AAPL) recently.

The stock has definitely trasformed from growth stock to a value stock and at the current level (closed in Dec 4th at $176.69) should in my mind offer a good entry point for a long term investor.

Apple has the kind of products, services, brand and pricing power that most other companies can only dream about. That pretty much sums up the "why" of the investment along with the price tag.

In terms of current valuation & financials we are looking at

  • Forward Price per earnings est. 12,0
  • Price per free cash flow 16,7
  • Return on Equity 48,7%
  • Cash per share $13,90
  • Dividend yield est. 1,65%
  • Long term debt / Equity 0,87
  • Quick and current ratios both at 1,1
All above based on data extracted on Dec 5th 2018 from Finwiz.