08.23.2021 Portfolio Update +
“Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.”- Mark Twain
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First thing I wanted to let everyone I did not delete my social media accounts. There were some confusion with some really caring folks, but I’m okay and to elaborate that I just sign off (log out) of all my social medias for weekends now to recharge and then Monday through Friday tweet tweet tweet! Although my intake of Instagram dropped dramatically after I started not using social medias on weekends (I’m guessing that’s for the better!).
I am working on a new little project that hopefully will be done by next week 🤞 or so.
I have started a different substack for deep dives only!
It’s called Water Shallow Research (originally I wanted to call it shallow waters research to make a play on words a la opposite of deep dive but that google email was taken 😥).
It’s not complete yet, but if you want to show support it would be great if you would check it out and maybe subscribe? :)
More details to come soon…
Now onto the newsletter!
Here is the breakdown of this week’s newsletter:
P&L Snapshot + Account Details
Portfolio Update
Importance Of Proper Allocation
Uncorrelated Correlated Risks
Weekly Munches
P&L Snapshot + Account Details
Portfolio Update*
*I’m NOT a financial advisor and everything on this substack and these posts are of my personal opinion and this is for entertainment and educational purposes only. Please do your own research and your own due diligence.*
I think this is the smallest screenshot I have had in a while or ever. Feels weird looking at it being so “tiny” without a lot of options.
I got filled on 2 put options on $OPFI at $10 (ouch!) and it is still my biggest “loser” if you want to call it that.
Interestingly enough I checked my profits per company and my largest profit right now is with $OZK (not realized) at around $7,000ish and I see that $OPFI is my biggest loser right now with around $7,000ish (not realized) and yet when I started buying $OZK when I had (at that time) less $50,000 (or so) in this portfolio so it is encouraging to think of the profits that should be coming in later years that are to come!
Stocks + Options
None of my call options got filled so I received all of the premium and my shares remained with me. Those that I was hoping to get called away I might sell some off to keep a little more “cash” on sidelines.
Other than that not much was happening in my portfolio. There is the whole CCP crackdown thing with Chinese stocks aka $BABA but that is not my problem (at least right now).
Importance Of Proper Allocation
I was listening to one of the episodes from Money Under the Mattress with Mitchell on Twitter and Jake on Twitter and them talking about owning certain companies and discussing importance of allocation and have ten stocks got me thinking (again).
I’m currently holding 15 + 1 call option and tell you the truth trying to keep track of them (the way I want to) is really hard while having crazy work schedule and being a father x2. So whenever I think about do I really know all of the companies I own in and out (I’m honest with myself) I know I do not, but I think I should definitely be learning and digging deeper even after I’m invested which I must confess I do a lot less now although the amount I’m investing is getting bigger!
Maybe I could of even prevent my losses although probably not to the extend I really wish to, there is still a lot of the unknown unknown.
So I have a point with this segment? Not really, except that before I add more companies under my belt…I should definitely make sure I know all ins and outs of my other companies or at least to the extend that serious retail investor can.
Uncorrelated Correlated Risks
Which brings me to the last point I wanted to discuss. My uncorrelated and correlated risk with companies.
The way I see there are 15 companies that I own and some are under the same kind of risk (be it if 💩 hit the fan) what do I mean?
Lets start with government risk
$VMD $CVS $OPFI $FB (should probably include $TWTR but government doesn’t really care about Twitter 😆 as much as Facebook or Google or other big tech)
Al though all four are not really related (except for $VMD and $CVS) they are because government can to some extend come in and mess with any of the four line of business ($FB= break up/regulatory, $VMD=losing contracts/license, $CVS similar or worse as $VMD, $OPFI=regulatory changes etc.) and it’s possible (although small change) all four happening at the same time.
THAT IS NOT GOOD!
Continue with $VMD and $CVS are both highly depended on Medicare/Government and right now $VMD is having some issues with Government and although $CVS is not there at all (at one time there were fears of Medicare For All or opioid crisis etc), nothing is stopping from it somehow getting targeted.
To get to the point I know I’m talking about chance and probabilities but I believe before investing in any companies, we need to make sure their risks are not correlated directly or indirectly with any other companies that you are invested in for the maximum “margin of safety” type.
Maybe all of you know this, but to me it was a light bolt moment and that’s because I can be too quick to get excited about investing in a company that on surface looks good via stats or story, but when you add second or third level thinking…things can get freaky!
Let me know if anyone agrees or disagrees or have any comments regarding this segment. I would love to hear from others to know what I’m talking about makes sense or not.
I’m here to evolve and learn and hopefully we can do that together!
Ps. Sometimes I feel like doing YouTube videos rather then writing all of this would be so much easier 😅
Weekly Munches
For this week here are some things to munch on…
The king of buy and hold - (Article)
Mazwood Memo #6 - (Substack Article)
The $WWE / $SPOT tag team, part 1(Spotify)- (Substack)
Burford Capital: Pioneering Litigation Finance - (Interview)
Peterson Capital Management Annual Meeting 2021 - (YouTube)
Thank you for reading all the way to the end. I really appreciate your time.
I hope you enjoyed this post and I would love to hear your feedback (be it positive or negative)
Lastly, I would really appreciate if you could share my newsletter (this post) with one person.
Sincerely,
Mr Zaye
P.S. Check out my LinkTree ⬅️ .
P.S.S. Don’t forget to ❤️ if you enjoyed it.
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