When Opportunity Knocks, Part 2

June 19, 2024
Wiko Steyn
Wiko Steyn

Core Fund Update 7: #17 of 20 stocks added.


Earlier this week we bought The Trade Desk when it fell more than 20% on what seemed like unrelated news. Our position is now up 27%.  Every now and then an opportunity like this presents itself - to buy a great company at a discount.

Nvidia is a name that needs no introduction. Like other tech growth stocks, it has exhibited share price weakness over the last several months due to various macro headwinds and sector-specific headwinds like chip shortages and turmoil in the cryptocurrency mining industry. These headwinds will probably continue for a year or even more, but if you have a 10-year time horizon, few companies have a brighter future. AI, deep learning, gaming, self-driving cars, robots and virtual reality - if you envision a future where these technologies are ingrained in our everyday life, we can guarantee that many of them will be powered by Nvidia. 

An interesting anecdote about two of our favourite semiconductor stocks, Nvidia and AMD, is that they share more than just the same sector. The CEOs of the two competitors are actually related. The grandfather of Lisa Su (AMD) is the uncle of Jensen Huang (Nvidia). This makes them 1st cousins once removed or something like that. What is more important is that these are two of the best CEOs in the industry and there is no doubt that this is one of the primary reasons why both companies have executed superbly over the last couple of years. After Nvidia's earnings on Wednesday, we bought some shares on the dip.

Portfolio Update Summary

Our Core Fund is green for the first time in a while. We will reiterate that most of what you are seeing in the market today is macro driven. This is a great time to consolidate and only allocate money to your highest conviction stocks. Our Core Fund Scorecard ensures that we only buy quality companies which should survive the short term volatility and come out stronger on the other side. We have used 50% of our money and picked 17 of 20 stocks thus far. Dollar-cost averaging is a proven strategy and we will continue to deploy it until we have allocated our entire $20000. At that point, we might start introducing some hedging strategies to lower our risk. Along with our new position in Nvidia we have also added to our favourite cloud stocks, Datadog and MongoDB, and our quality biotech pick Illumina.

  • Buy $500 NVDA at $165.41
  • Buy $250 MDB at $224.37
  • Buy $250 DDOG at $86.78
  • Buy $250 ILMN at $242.20



This article is not financial advice and is based on the opinion of the author. 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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