Something Feels Off in My Portfolio-A Learning Moment in Which I Can Lay a Plan Out Pt. 2
Okay, Tottenham is getting pounded by Liverpool right now, which hurts for a variety of reasons, so I guess now is not a bad time to finish up my article from yesterday. To summarize, in case you missed my article from yesterday, I feel pretty great about everything in my portfolio, except for three companies that I have felt increasingly iffy on: Block, Disney, and the one I am about to talk about, GigaCloud Technology.
With Block, the numbers are decent, but internally, I feel bad about the company. I just have a gut feeling that the price is too high, that their competition like Pay Pal will destroy their ecosystem, and that I should take the 48% profit that I feel I have stumbled into.
With Disney, I think I just need to cut bait. I have held this company for five, almost six, years now, and I have continued to wait and have faith, but I think I have run out of faith, and it is time to get honest. This company has some great internal qualities, infinite IP, a super strong backbone from the parks/cruises, and a very popular streaming service that is expected to continue growing and to continue to bring in growing profits, but I do not think they will overtake Netflix, and I do not think the company is wildly undervalued. I think that I have become a little too, I don’t know, okay with its presence in my portfolio. I have failed to re-evaluate my holding of this company adequately.
And finally, GigaCloud Technology. GigaCloud is a very recent purchase. I bought the stock only a week ago, and in that time, its price has somehow fallen even further, dropping about 12% since I purchased it. And oh my lord, Tottenham just conceded a fourth goal. Anyway, GigaCloud Technology is a stock that I know is undervalued, now even more so. They are a company that I think can really grow, and even though their price has fallen considerably, I feel better about them than I do either Block or Disney.
Oh my lord. YOU HAVE GOT TO BE KIDDING ME. We just conceded a fifth. THIS STUPID TEAM.
As I was saying, GigaCloud Technology is a stock I do not feel bad about owning. It is underperforming the market and dragging my portfolio down a bit right now, and it may even be a value trap, but there is too much upside. And this is not even a blatant, greedy money-grab, where I am just gambling that this small-cap stock will double in value. There is genuine intrinsic value in this company’s operations. Their B2B operation and digital marketplace are genuinely stable and growing. This is a company worth a shot, at the very least.
So, what is my plan?
Here is my master plan:
I have been thinking a lot about this, and I think I am going to sell out of all my Block. It has been a profitable, albeit short ride (12 months almost exactly). I sold out of a chunk a while ago, after the stock popped, but I just do not feel good about the company, and I am going to trust my instincts. If the stock doubles in the next year, so be it. I will see what lessons can be learned. With that money, I am going to buy a bit more GigaCloud, probably adding about 25% to my position.
Then, I will sell a chunk of my Disney, not all of it, and buy more of ServiceNow or Ferrari. ServiceNow only makes up about 10% of my portfolio, which is probably a bit low for a company I rate so highly. Ferrari is a great company at the price that I originally bought it at. I also might just buy TQQQ because all of these prices are so high. We’ll see.
I do know that I will be selling all of my Block and putting that money into GigaCloud and another stock in my portfolio, and then doing the same with my Disney.
Okay, now I’m feeling a little better, even though Tottenham is still getting mercilessly destroyed.
