Trade Alert: Trimming Some Into The Trillion Dollar Euphoria
Big day for many of our positions so let’s recap some of today’s action along with anything else that stands out to me.
QCOM ramps big, up about 15%, after a big earnings beat and guidance raise. Turns out 5G is gonna be big for the company. Sound like something we might have expected? Yea. Anyway, I trimmed a little bit of my common QCOM in the hedge fund just to be disciplined. Holding most of it steady.
Nikola is up about 15% too, to new highs since we turned from shorts to longs on this name around $10 a couple months ago. I had trimmed some from the hedge fund yesterday unfortunately and am going to take some profits part of the call options that have kicked in nicely today.
The big movers today includes our long-held NVDA, which we’ve owned for five and a half years and which is up today about 4x what those who bought it with me back when I sent out the original Trade Alert on it in 2016 when the stock was at a split-adjusted $8, which makes me think of a point I should make to myself and you all.
I often talk about how my job is to get us into investments that are creating Trillion Dollar economies before they become apparent to the mainstream. NVDA is now a worth three-quarters of a trillion dollars. The assets in this country that are worth a trillion dollars include several that we got in long ago:
Apple: Today worth $2.7 trillion. AAPL was worth $0.006 trillion when I sent out the original Trade Alert about buying it to my followers at TheStreet.com back in 2003.
Google: Today worth $2 trillion. GOOG was worth $0.023 trillion when I sent out the original Trade Alert about buying it on the day of its IPO.
Amazon: Today worth $2 trillion. AMZN was worth $0.3 trillion when I sent out the original Trade Alert about buying it.
Facebook: Today worth $0.9 trillion. FB was worth $0.045 billion when I sent out the original Trade Alert about buying it.
Tesla: Today worth $1.3 trillion. TSLA as worth $0.03 trillion when I sent out the original Trade Alert about buying it.
Bitcoin: Today worth $1.5 trillion. BTC was worth $0.002 trillion when I sent out the original Trade Alert about buying it.
Nvidia: Today worth $0.75 trillion. NVDA was worth $0.02 trillion when I sent out the original Trade Alert about buying it.
Microsoft: Today worth $2.2 trillion. I’ve owned MSFT off and on over the last twenty years. Didn’t make me much money and I might have even lost money trading around in MSFT over the years. My bad.
I guess I got us — and more importantly, have kept us — in 7 out of the 8 assets that have become part of a new Trillion Dollar Club that didn’t even exist and actually sounded hyperbolic when I first started talking about these trillion dollar potential market caps and multi-trillion potential economies. My bad on not having us in Softee this whole time, but see that’s where the lesson lies here. All of our big money has been made when we sit on our hands — not trading. I’ve quoted Edwin Lefèvre, author of Reminiscences of a Stock Operator, from back in the early 1900s before:
“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine–that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.”
Now that said, I do think the markets feel very bubbly again and I’m wondering if the most likely move is lower again, maybe another 5% pullback or maybe something more serious. I don’t know yet. But I do not favor chasing this current momentum on this day at these levels. I continue to focus on the next multi-trillion dollar economy that will create the next batch of trillion dollar valuations. And I think that’s The Space Revolution.
So in sum: Mostly sit tight, but please, oh, please do not be on margin or be greedy or forget to trim a little bit along the way. Yes, even TSLA must be trimmed sometimes.
And let’s find the next trillion dollars out there.
