To The Moon

Lets face it, nvidia has had an incredible run up in recent times. The pull back to $1.15 should be taken in context. Its not a big deal unless like me, you got in late. But the hatchet job deepseek did on nvda seems to still looms as some commentators continue to use the fake news to try to keep the price down. Eventually reality prevails, politics and big money wins as well and in my humble opinion $NVIDIA(NVDA)$ will start pushing $150 again. The market sheep will push the negative sentiment for a few more weeks... you know, tech bubble about to burst. But the reality isn't hard to spot. Massive capx expenditures in mag 7. Would they be doing this if they didn't have a clear vision of the future?

Im tapped at the moment so can't buy more nvidia. To buy more id have to sell down positions in $Rocket Lab USA, Inc.(RKLB)$ And or $SoFi Technologies Inc.(SOFI)$. Nope no can do, because even though i am overweight in both, I understand them way more than nvidia. I will need to understand nvidia as well as I understand the other two, and im not there yet.

I know that the market always tells you diversification is the only way. Tried that for years with average returns. Now i was a student and then a teacher of strategic management for well over a decade. Studied many corporate diversification strategies, ooo like colgate's decision to make colgate pasta. Yes they seriously went into packaged foods. Himmm how did that work out? Well from a manufacturing perspective and a standpoint of leveraging core competencies kinda seems reasonable. But seriously colgate mac and cheese? Im just thinking my cheesie Mac tastes like toothpaste, yuck.

So intensification is a different approach. You just know everything about just a few stocks and only invest in them, more risky? Potentially yes, it requires you to pick winners. Diversification means picking alot that you know a little about. Win some loose some. 

Last year i decided to change my approach. In my retirement account im in index funds like the S&P 500. Highly diversified and representative of 75% of my portfolio. The other 25% was in my brokerage account and it was also diversified max of 5% in any stock, and i was mainly in dividend stocks. Then I discovered the unicorn. A company so amazing that it couldn't possibly exist. So i sold down all my positions and just bought the one stock, and lots of options too. As the year progressed I discovered a few other growth Stocks that i was slow to pull the trigger on but did well all the same.

So how did my retirement fund do? Up 17%, not bad for a massively diversified portfolio. And my brokerage account with tiger? Second pick shows that, up almost 1200%. So thats a pretty astounding vote for intensification over diversification.

Will i be able to do that this year? 1200% is pretty crazy. The point im raising here is that conventional wisdom works if you follow it, and you will do just fine. To do exceptionally well you must take risk, thinking outside your existing paradigm but also having a well considered plan to achieve greatness 

May your tiger trades be ever in your favor 

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