I did a BABA analysis a few months ago. I don’t like Chinese stocks because of all these geopolitics and continuous tensions between the US and China that are impacting them the most.
Yeah, I learned the same mistake investing in Chinese stocks a few years ago and sold them around 2 years ago, took the loss as a lesson, and moved on. It’s very hard to predict these geopolitical issues. They’re super cheap for a reason = geopolitical risks. We can’t really use the traditional way of valuing stocks when we look at Chinese stocks. It doesn’t work. Their capital market is highly influenced by geopolitics and regulations.
Great video, watched it on the train in the morning. Nvidia has and seems to continue to be the Nr.1 play this year. At this point I'm seriously thinking about Nvidia+some mag7+SOXX only as a portfolio variant ^^
Yeah I like AI and semiconductor businesses the best. In this market, most tech companies need to partner with Nvidia. Nvidia sells the picks and shovels to AI companies. It’s more like Magnificent 1 + everyone else:) I also like SOXX, SMH and SOXQ semiconductor ETFs, but most semiconductor stocks are overpriced now.
Honestly, considering how far nvdia is ahead of the game and that most major tech companies go to them instead of other companies I do feel like they might take first over microsoft for a while
Possible. It’s Nvidia vs everyone else. Now many Nvidia’s competitors (AMD, Intel, Broadcom, etc) are collaborating to develop platforms (eg an alternative to Nvidia’s proprietary NVlink that connects all the AI GPUs together, AI software) to compete with Nvidia because they don’t want Nvidia to have the entire AI accelerator market.
Other than the shift of funds, why did you sell off Adobe when you pointed it is currently undervalued, and it’s one of the stocks that you were willing to hold/ invest?
Good question. There are several reasons. 1) I mentioned in the video, I wanted to use the capital to invest more in Amazon. Like Microsoft Azure and Google Cloud, Amazon AWS will likely benefit a lot from the current AI boom. 2) Recently, I noticed some of the SaaS businesses (eg Salesforce, Intuit Inc, Service Now) and Cybersecurity companies are reporting lower billings and lower revenue guidance than expect, and one of the biggest reasons is that CIOs are shifting their IT spending from enterprise software to more AI spending, so that’s going to affect many SaaS businesses in the short term. I bought Adobe many times before when it was even more undervalued, and sold Adobe several times before to take the gains. After selling some Adobe to take the gain, I still have Adobe in my other accounts, but I want to have less weights on SaaS businesses going forward. 3) It’s just my strategy to focus more on businesses that will be benefit the most from AI now, and have less weight on SaaS businesses now.
No problem. In the video, I mentioned the intrinsic value before and after the stock split. Nvidia will have a 10 for 1 stock split, so just divide my intrinsic value estimate by 10 after they split the stock. Not advice, but I want to buy more if it dips below my intrinsic value. Of course the lower the price, the better.
@@TheIntelligentInvestor Thank you for your video; I've subscribed and liked...I want to support you. Your investment philosophy is similar to mine: Hold fewer positions but hold top quality/difficult to enter companies and watch them like a hawk...as opposed to someone very young I spoken to about 5-6 years ago who complained about low returns from MFs - something I used to be in but about a decade ago I decided that I can do better, in large part b/c MFs are overly diversified.
Thanks John, most MFs underperform vs the S&P 500 over the long run because 1) they over diversify into hundreds of stocks where many of them are mediocre businesses, 2) high management fees, 3) bad picks from the fund managers, 4) managers are encouraged to match the index instead of trying to beating it. I learned that it’s much better to focus on few top holdings (the best businesses that are most profitable that we understand the most) instead of many stocks we don’t even understand. That’s also how many the top investors (eg Warren Buffett) beat the market over the long term and make a lot of money.
@@TheIntelligentInvestor That's correct. Although I don't like many of Buffet's holdings such as KO, See's Candies, etc...I agree with Buffet, as well as other top hedge fund managers' philosophy to hold fewer positions and watch them like a hawk. My other influence was from Stanley Druckenmiller and when he worked for George Soros, making a $billion by shorting the pound. Soros had said that if you believed in something and you're very certain of it, you must 'back up the truck', meaning buy as much as possible. And this led me to profit from two of the biggest gainers in my investments (AAPL, NVDA).
👏👏👏👏👏If you like my channel and want to support it, here is how you can help (My Patreon Blog): www.patreon.com/IntelligentInvestorChannel
I truly value your content…thank you for researching so thoroughly on big tech.
Thx Ben I appreciate your support.
Thanks Victor
Your videos are very informative. Thank you!
Thanks for supporting!
Thank-you for the video!
Will you be interested to do an analysis for Arm holdings? A high growing tech stock, keen to hear your perspective
Yeah it’s on my list. I’ll analyze ARM soon.
Excellent! Thank you 🙏
Lovely video as akways, thanks Victor! Will you looking to do a stock analysis on BABA too? Thanks!
I did a BABA analysis a few months ago. I don’t like Chinese stocks because of all these geopolitics and continuous tensions between the US and China that are impacting them the most.
@@TheIntelligentInvestor I must agree with you, as my BABA has been crushed b/c of China's President or aka Winnie the Pooh. Hahaha.
Yeah, I learned the same mistake investing in Chinese stocks a few years ago and sold them around 2 years ago, took the loss as a lesson, and moved on. It’s very hard to predict these geopolitical issues. They’re super cheap for a reason = geopolitical risks. We can’t really use the traditional way of valuing stocks when we look at Chinese stocks. It doesn’t work. Their capital market is highly influenced by geopolitics and regulations.
@Theintelligentinvestor thanks for your explanation! Would agree with you that geopolitical risks is indeed very hard to predict or even value. Cheers
Thanks!
Thank you my friend.
Nice one!
Like your videos as always. Will you be studying about healthcare stocks aside tech?
Thx for the suggestion. I tried analyzing healthcare stocks before, but they are outside of my specialty.
Great video, watched it on the train in the morning. Nvidia has and seems to continue to be the Nr.1 play this year. At this point I'm seriously thinking about Nvidia+some mag7+SOXX only as a portfolio variant ^^
Yeah I like AI and semiconductor businesses the best. In this market, most tech companies need to partner with Nvidia. Nvidia sells the picks and shovels to AI companies. It’s more like Magnificent 1 + everyone else:) I also like SOXX, SMH and SOXQ semiconductor ETFs, but most semiconductor stocks are overpriced now.
@@TheIntelligentInvestor Thanks for your thoughts!
Very clear 👍
Thx!
Honestly, considering how far nvdia is ahead of the game and that most major tech companies go to them instead of other companies I do feel like they might take first over microsoft for a while
Possible. It’s Nvidia vs everyone else. Now many Nvidia’s competitors (AMD, Intel, Broadcom, etc) are collaborating to develop platforms (eg an alternative to Nvidia’s proprietary NVlink that connects all the AI GPUs together, AI software) to compete with Nvidia because they don’t want Nvidia to have the entire AI accelerator market.
What do you think of MCO/SPGI?
Great companies but overpriced. S&P Global is better because it has both the index business and the credit rating business.
can you talk about arista network next please?
Thank you very much,. Love your contents
Thx for the suggestion, I’ll try to look into it, but no guarantee I’ll make about it.
Other than the shift of funds, why did you sell off Adobe when you pointed it is currently undervalued, and it’s one of the stocks that you were willing to hold/ invest?
Good question. There are several reasons. 1) I mentioned in the video, I wanted to use the capital to invest more in Amazon. Like Microsoft Azure and Google Cloud, Amazon AWS will likely benefit a lot from the current AI boom. 2) Recently, I noticed some of the SaaS businesses (eg Salesforce, Intuit Inc, Service Now) and Cybersecurity companies are reporting lower billings and lower revenue guidance than expect, and one of the biggest reasons is that CIOs are shifting their IT spending from enterprise software to more AI spending, so that’s going to affect many SaaS businesses in the short term. I bought Adobe many times before when it was even more undervalued, and sold Adobe several times before to take the gains. After selling some Adobe to take the gain, I still have Adobe in my other accounts, but I want to have less weights on SaaS businesses going forward. 3) It’s just my strategy to focus more on businesses that will be benefit the most from AI now, and have less weight on SaaS businesses now.
Thanks you Victor for making this video ❗👍 What's the best price for after NVDA split?
No problem. In the video, I mentioned the intrinsic value before and after the stock split. Nvidia will have a 10 for 1 stock split, so just divide my intrinsic value estimate by 10 after they split the stock. Not advice, but I want to buy more if it dips below my intrinsic value. Of course the lower the price, the better.
The gamers are so pissed at NVDA for neglecting them. AMD better not fumble the ball
Yeah, it’s all about the money. Nvidia makes so much more from its data center business now. Time to support team Red!
Are you from HK?
The prices for these positions are in Canadian dollars - threw me off initially. Okay.
Yeah, I’m Canadian, so I have to buy US stocks with CAD.
@@TheIntelligentInvestor Thank you for your video; I've subscribed and liked...I want to support you. Your investment philosophy is similar to mine: Hold fewer positions but hold top quality/difficult to enter companies and watch them like a hawk...as opposed to someone very young I spoken to about 5-6 years ago who complained about low returns from MFs - something I used to be in but about a decade ago I decided that I can do better, in large part b/c MFs are overly diversified.
Thanks John, most MFs underperform vs the S&P 500 over the long run because 1) they over diversify into hundreds of stocks where many of them are mediocre businesses, 2) high management fees, 3) bad picks from the fund managers, 4) managers are encouraged to match the index instead of trying to beating it. I learned that it’s much better to focus on few top holdings (the best businesses that are most profitable that we understand the most) instead of many stocks we don’t even understand. That’s also how many the top investors (eg Warren Buffett) beat the market over the long term and make a lot of money.
@@TheIntelligentInvestor That's correct. Although I don't like many of Buffet's holdings such as KO, See's Candies, etc...I agree with Buffet, as well as other top hedge fund managers' philosophy to hold fewer positions and watch them like a hawk. My other influence was from Stanley Druckenmiller and when he worked for George Soros, making a $billion by shorting the pound. Soros had said that if you believed in something and you're very certain of it, you must 'back up the truck', meaning buy as much as possible. And this led me to profit from two of the biggest gainers in my investments (AAPL, NVDA).