Showing posts from December, 2021

Worst Case Scenario of Pledge-Sell-Farm

With regards to my most recent strategy post - Pledge-Sell-Farm - someone by the nick of Corgitator actually wrote a long comment in InvestingNote  as per quoted below as well: "High conviction =/= high returns because hey, even the best investors make mistakes. In fact, it's the high conviction ideas that you get wrong which kill your portfolio (i.e. It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so). And if one is that certain that the company will definitely do well (nothing is definite though, investing is after all just a handicapping game), then just buying LEAPs on those companies will make you way more than writing puts and reinvesting the premiums in blue chips. Also, the strategy is what I call picking pennies in front of steamroller strategy (just like all naked option writing strategies and their variants). Your hit rate will be high, but when you do make a mistake, the damage is immense. Imagine this scenario:

New Strategy: Pledge-Sell-Farm

If you do not have FAANG in your portfolio, I guess your portfolio will be in the red. And it is damn red, like mine. In 2022, I believe the US market will also have significant volatility due to the tapering and potential interest rate rise. It may just continue to be range-bound. Many of us that invested in growth stocks will continue to be bag-holding. For those, like me, who also invested in the China Giants, will not know how long we need to be bag-holding as well. So what am I going to do? In 2022, I have decided to use part of my portfolio on this strategy where I will "Pledge, Sell and Farm".  It is a strategy that I innovated after watching Chicken Genius YouTube Video below. If you have not watch it yet, here it is.  Chicken Genius YouTube Video Screenshot The main idea is as follows: Pledge - Pledge a group of companies in our portfolio to ourselves for 1 year , which we do not mind liquidating if required after 1 year. If this sound stupid, the idea is just to t

Why Is The Market Down-Trending?

Before I start writing on the topic, I just liked to inform you that I had probably written my 2 MOST extensive and in-depth articles on a company on Medium - and that is definitely on my highest conviction company - Digital Turbine Inc (APPS).  Please read Part 1 and Part 2 here. A warning to you - these are over 10 mins read. That is how long it is. One important point that was not written and I just found out lately from their latest interview with Oppenheimer is that Digital Turbine is currently working with Meta on SingleTap! This will be amazing! Nevertheless, I will greatly appreciate if you could follow me on Medium as well. Thank you. Back to the topic... I have been wanting to write this post because this will remind the future me of my answers - whenever this question pops up in my head. When there is much fear in the market, there is always a few recurring questions - like "Why a particular company share price has been down trending?", "Why the economy so