Abstract: Explain the reasons of buying US stock American Express (US stock code: AXP), and selling Nvidia (US stock code: NVDA) and AMD (US stock code: AMD) and share my views.
Transaction detail
What I want to share with you today is the transaction I made on November 26. The details are as follows:
Bought stock
- American Express Company (US stock code: AXP)
- Quantity: 4 shares
- Bought price: US$157.46
- Commission fee: US$0.35
Image source: https://seekingalpha.com/symbol/AXP/chart
Sold stock
- NVIDIA Corporation (US stock code: NVDA)
- Quantity: 2 shares
- Sold price: US$317.33
- Commission fee: US$0.35
Image source: https://seekingalpha.com/symbol/NVDA/chart
Sold stock
- Advanced Micro Devices Inc (US stock code: AMD)
- Quantity: 4 shares
- Sold price: US$154.49
- Commission fee: US$0.35
Image source: https://seekingalpha.com/symbol/AMD/chart
Reasons to sell Nvidia and AMD
In order to further balance the position allocation, it was decided to reduce their holdings again, Nvidia and AMD, the two companies that currently account for the highest proportion of positions. Since other companies that I am interested in increasing have also begun to experience significant declines, I decided to slightly reduce the holdings of these two stocks that are currently still in high valuations in order to release funds and wait for opportunities to increase the holdings of other stocks, including purchase of Alibaba on the same day.
Reasons to buy American Express
American Express’s business performance has always been very stable. Its main business is a one-stop credit card payment business. Although most of my holdings are technology companies that I think have long-term growth potential. Apart from technology companies, I really like and am very optimistic about the credit card payment business. It has high profit margins and high demand. It is also believed that it will be difficult to be replaced within a foreseeable future. Last time in August, I reduced my holdings of American Express and switched to Paypal. Although in the perspective of stock price it was such a failure, Paypal has performed very poorly since the position was opened. However, in the long run, I think Paypal is also a strong growth driver. In any case, the share price of American Express has experienced a significant drop this time, so I hope to increase my holding of it, so that my four financial payment stocks will account for almost the same proportion.
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.
