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How To Lose $400 Billion In Three Days
Nvidia melted into America's ridiculous heat wave on Monday, when the shares suffered a third straight daily decline.
Jump off the nearest roof, I know. When you hit the scorching-hot pavement, your viscera will sizzle like a fried egg. Sssssssss.
When companies get as large as Nvidia, small-ish moves -- pedestrian pullbacks -- are huge in market-cap terms.
Nvidia's three-day skid put the shares into a technical correction, but more to the point, the company's worth ~$400 billion less tha
Yesterday, I sold 90% of my Nvidia position and bought SPY. I now have just under 50% of my portfolio in SPY.
My next “swing for the fences” will be in nuclear.
Now we know who was responsible for Nvidia’s $208 billion one-day rout.
Haha. I sold at a 410.59% profit, so for this “Forrest Gump” style investor- I decided to move to the safety of SPY (another haha). I
I have one additional stock that I would like to pare down, but it is in a taxable account, so that makes it harder for me to do.
I know the feeling about working around taxes. At 80 everything I have is taxable. Some years ago I put together a little DIY fund of eight pharma stocks. My biggest purchase was 1000 shares of LLY at 30. It also proved to be the best. I got nervous when it hit 400 and I sold a bit to trim the position. I started giving it away to charities when it hit 500. This year I gave my daughter and her husband some to tide them over while they both are job seeking. I gave them some other stuff with unrealized losses to erase their gains, their only income this year, in all likelihood. The market is tough for senior techy managers. Lilly hit 900 today and I still have some left, 8% of what I started with, worth more than twice what I paid for the whole position initially. People who ride these hot stocks up may like them, but some folks who held to the top have tough decisions. I still have six of the eight pharmas I started with. ABT more is slated for donation this year, lousy dividend.
Awesome story, Mr Lucky. 🙂
I know there was a breakthrough in nuclear fusion technology about a year ago. I figured nuclear fusion would crowd out fission, solar and wind as the source of power over the next 10 years. I did some research and all nuclear fusion tech was in private hands. The best I could find for investing was that you need lithium to make nuclear fusion to work. I bought stock in a bunch of lithium producers and lost a bundle.
I bought SMR last year after it tanked- but I had no conviction and sold it at about what I paid for it.