Long-term growth stock portfolio (2021-11-19)

In terms of US stocks, four financial stocks in positions fell across the board,  Visa (US stock code: V), Master Card (US stock code: MA), American Express (US stock code: AXP)and Paypal Holdings Inc (US stock code: PYPL) declined 5.29%, 6.54%, 4.59%, and 7.02%, respectively. This was mainly due to market concerns that the growth prospects of these payment financial services can not be sustained. On the one hand, some new payment methods such as buy now pay later or companies like Square will seize their market share. On the other hand, it will also be pressured by retail giants such as Amazon, which will affect their profit prospects. The stocks of other holding companies in my portfolio have generally risen, especially the leading technology companies continue to rush upwards, Tesla (US stock code: TSLA), NVIDIA (US stock code: NVDA), Advanced Micro Devices Inc (US stock code: AMD), TSMC (US stock code: TSM), Apple (US stock code: AAPL) and Amazon (US stock code: AMZN), rose 9.99%, 8.6%, 5.13%, 4.69%, 7.06% and 4.27% respectively. Fortunately, thanks to the continued strength of big tech stocks this week, which offset the decline of financial stocks, the value of my portfolio continued to rise this week. Year-to-date returns have outperformed the S&P 500 index, but short-term returns are actually not very important to me, unless there is an urgent need to cash out investment in the short term, otherwise investment should focus on long-term returns. The year-to-date return has exceeded 27%, which can be said to have exceeded my expectations. If it were not for the drag of Hong Kong stocks, the return would be even more impressive. But to be honest, I think it’s impossible for a year’s return of 27% to last for a long time. It may be a bit disappointing. However, based on my investment experience for so many years, in the long run, this investment return will inevitably return to the mean. Even if you can attain 27% return for two years instead of one in the long run, it would be excellent. I remember that I used to play options through high-risk methods to obtain high annual returns, but in the end, some small probabilities or black swan events always happened to make  you lose all your the annual profit or even suffered a few-year-profit loss overnight. All in all, I only hope that I can apply what I think is the right way to strive for higher returns and increase my assets in the long run.

In terms of Hong Kong stocks, Tencent (HK stock code: 700) was relatively good, rising 2.23% throughout the week. Alibaba Group Holdings Ltd (HK stock code: 9988) performed very poorly, dropping by 14.22% throughout the week. Due to the poor quarterly result, the market’s attitude towards Alibaba has obviously become extremely pessimistic, and it is expected that this company will not see rapid growth again. Of course, the management also stated that they will focus on business that is conducive to social development in the long-term. It is no wonder that the investment community is pessimistic with such an uncertain statement, but from a long-term perspective, I personally believe that Alibaba’s long-term business development will remain solid. But to be honest, compared with U.S. companies, Chinese companies have undoubtedly more restrictions on company development due to some unfavorable factors that are affected by policies. Although U.S. companies are also affected by policies, the degree of extent is undoubtedly different. So I will have to control the bets placed on Chinese stocks.

In terms of options, there is currently only one short put of China Evergrande (HK stock code: 3333) with exercise price at HK$2 and expiration on November 29. There are still one weeks before expiration. The stock price of Evergrande is turning stable this week. The option value tends to zero now. Given the current situation of Evergrande, it seems that this short put will most likely become waste paper by the end of the month.