Summary
Highlights
The speaker's portfolio was up 1.31% over the past week, outperforming the S&P 500, which was down 2.42%. Year-to-date, the portfolio is up 64.36% compared to the S&P 500's 11.42%. The video will cover upcoming earnings, Friday's market events, and investment strategies. The S&P 500 recently experienced a significant drop, erasing $1.2 trillion in 40 minutes, leading to a spike in the VIX volatility index.
Next week features major earnings reports from financial institutions (BlackRock, JP Morgan, Goldman Sachs, etc.) and semiconductor companies (ASML, TSMC). The speaker increased positions in Rubric (16%), Shift4 (20%), and Oscar Health (8%). They also took profits from Ion (selling half, which was up 200%) and Intel call options (up 520%), citing a need to not be greedy and to increase cash reserves.
Call options carry significant risk, as demonstrated by Pagaya and PayPal options dropping 34% and 30%, respectively, in one day, despite some still showing triple-digit gains overall. The speaker plans to use increased cash to potentially buy more Oscar, Rubric, and Shift4, and might add to PayPal options with longer expiration dates (January 2027) once market conditions stabilize after potential trade wars and recessions.
Referencing Peter Lynch, the speaker emphasizes not being married to any stock and views diversification differently. Instead of spreading thin, Lynch suggests buying all equally attractive strong stories and then actively managing them, selling those that falter and increasing positions in those that strengthen. The speaker applies this to their portfolio, considering cutting certain positions (like Duolingo) to increase exposure to stronger conviction stocks (like Oscar).
Friday's market dip was influenced by trade tensions and tariff threats, but an analyst suggests it's a typical Trump playbook, leading to negotiation. The market was due for a correction, having risen significantly. Drawing from the book 'Just Keep Buying,' data shows that dollar-cost averaging generally outperforms waiting for dips, suggesting that continuous buying, even during volatility, is a more effective long-term strategy for most investors.
The speaker encourages investors to reflect on their reactions to market volatility: Did they panic? Did they stick to their plan? Did they take profits from significantly rising stocks or become greedy? He admits to previously being greedy and learning from past mistakes. The key message is to have a plan, not panic during volatile times, and continually buy good companies at good prices.