Abstract: Explain the reasons of buying US stock Paypal (PYPL), Visa (V) and MasterCard (MA) and sold Tesla (TSLA) and Nvidia (NVDA) and share my views.
Transaction detail
What I want to share with you today is the transaction I made on October 27. The details are as follows:
Bought stock
- Paypal Holdings Inc (US stock code: PYPL)
- Quantity: 3 shares
- Bought price: US$234.75
- Commission fee: US$0.36
Image source: https://seekingalpha.com/symbol/PYPL/chart
Bought stock
Image source: https://seekingalpha.com/symbol/V/chart
Bought stock
- Mastercard Incorporated (US stock code: MA)
- Quantity: 2 shares
- Bought price: US$335.98
- Commission fee: US$0.35
Image source: https://seekingalpha.com/symbol/MA/chart
Sold stock
Image source: https://seekingalpha.com/symbol/TSLA/chart
Sold stock
- NVIDIA Corporation (US stock code: NVDA)
- Quantity: 3 shares
- Sold price: US$249.205
- Commission fee: US$0.36
Image source: https://seekingalpha.com/symbol/NVDA/chart
Reasons for Selling Tesla and Nvidia
Tesla and Nvidia broke new highs once again, making these two companies the top one or two holdings of the overall portfolio, accounting for more than 7.5% each. Although I did not set a single stock holding upper limit, I personally don’t want to depend on any single stock. For any individual company, irrational situations may happen in the market at any time, and the development strategies and operations of individual companies may not always be satisfactory, therefore I think it is necessary to moderately diversify. In short, everyone’s risk attitude is different. If you want to have a long-term ideal return in the stock market, it is very important to establish a strategy that allows you to hold stocks with peace of mind. For me, there are more than a dozen stocks in my portfolio for which I feel quite comfortable, and I don’t have a heavy position in anyone of them, and Chinese stocks account for a bit more than 20%. This proportion makes me feel very comfortable. I think this is the key to enable me to hold my portfolio for a long time so that there is enough time for my companies to grow.
So yesterday I decided to slightly reduce the positions of Tesla and Nvidia to increase my holdings of the following three stocks.
Reasons for buying Paypal, Visa and MasterCard
These three stocks experienced substantial declines yesterday, dropping by 3-6% respectively. In contrast, comparing the soaring share prices of Tesla and Nvidia, I think it is a good idea to exchange them into these three financial stocks. It can make the ratio of my shareholdings more balanced, instead of focusing entirely on semiconductor and electric vehicles fields, but increasing holdings of these more traditional financial stocks that I have confidence in.
Paypal’s share price after giving up the acquisition of Pinterest is still much lower than before the acquisition news, so I think it is a good opportunity to increase its holdings; on the other hand, I think Visa and MasterCard will have a good business after opening border travel in various countries. So the current decline also provides a good opportunity to increase their positions. In short, I am also very confident in the long-term development of these three companies.
Comments and sharing
If you have any questions, please feel free to leave a message or comment below, I will reply you. Or if you find anything incorrect in the article, please let me know and learn from you. If you find it interesting or it may help you in any sense, please share with other people.
