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My Top 5 personal Buys during this Bear market

April 16, 2024
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Wiko Steyn
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Wiko Steyn

Core Fund Update 14

 

Over the past 6 months FU Investments have been building five demonstrative portfolios on FinMeUp, but today I want to give some insight into my personal portfolios, which includes: one for South African stocks, a Tax-Free Savings Account, one for Australian stocks, one for American stocks and then two funds that are managed by Investec. This diversification is essential to my risk management strategy and each portfolio plays a specific role towards my goal of financial independence. 

Most of my research and investing time is spent on American stocks where I keep a portfolio of 30 - 40 stocks. These are mostly tech and biotech stocks with a 5 - 10 year time horizon. I definitely consider this one of my higher risk portfolios. 

During this bear market, I have been consolidating some of my positions to focus on the opportunities that can give me the highest potential returns. Below I will present my top 6 buys for the last 3 months as well as some price levels.  Disclaimer: This is not financial advice and none of these stocks are buy recommendations. This is a high-risk portfolio and the author is fully aware that he might lose some or all of his money by investing in these companies. 

 

AMD

AMD ($58.44) is currently at levels we honestly did not believe we will see again. This is a fantastic semiconductor company, led by one of the most competent CEOs in the industry. It is facing enormous short-term headwinds, but the long-term secular tailwind should turbo-boost it higher if you can stomach the volatility.

Accumulation below: $60

DCA between: $60-$90

Caution above: $110

3-Year Price Target: $140

Risk (4/10) - A recession will cause a massive slowdown in the computer market but we feel this is mostly priced in at a forward PE of 15. A Taiwan invasion from China is now the biggest risk, which would have a significant impact not only on AMD but also on the market as a whole .

 

MercadoLibre

MercadoLibre is our favourite LatAm play. This leading eCommerce and Fintech company seems to be headwind resistant by producing staggering results and smashing Wall Street's expectations.

Accumulation below: $700

DCA between: $700-$900

Caution above: $1200

3-Year Price Target: $1450

Risk (5/10) - Will the current environment prove too difficult for Meli, with FX, geopolitical tension and a recession beating down on it? We will have to wait and see.

 

ClearPoint Neuro

This micro-cap medical device company has been executing superbly. ClearPoint Neuro is a global therapy-enabling platform company providing stereotactic navigation and delivery to the brain. Profitability is probably still far away but we are excited to watch this story unfold.

Accumulation below: $7

DCA between: $7-$10

Caution above: $16

3-Year Price Target: $22

Risk (8/10) - Key risks include dilution within the next year, disappointing data from partners, regulatory setbacks and key patent expirations in coming years.


Palantir Technologies

We still believe that this AI company has tremendous potential but the focus on profitability will be key during these tightened financial conditions. 

Accumulation below: $7

DCA between: $7-$9

Caution above: $15

3-Year Price Target: $19

Risk (8/10) - This controversial company still carries massive risk, from dilution from SBC to a slowing in government contracts.


Beam Therapeutics 

Beam is currently our top pick in the high-risk high-reward gene-editing space with its revolutionary base editing platform.

Accumulation below: $40

DCA between: $40-$50

Caution above: $70

3-Year Price Target: $110

Risk (10/10) - Beam has only started to enroll patients into its first clinical trial, so we are still very early and it will take years of patience to see how this one plays out.


Watchlist

  • Cloudflare
  • The Trade Desk
  • Tesla
  • DataDog


 

Portfolio Update Summary

We still have no idea when this bear market will bottom, so we stick to our plan by dollar cost averaging (DCA) into our favourite companies.

  • Buy $250 CRM at $149.69
  • Buy $250 TSLA at $222.91




Disclosure

This article is not financial advice and is based on the author's opinion. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk, and a financial product's past performance does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products. The $20K in the Core Fund is not real money and only a demonstration of a typical portfolio. This is an actively managed portfolio, where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.

 













 


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