What I’m Trading: Peter
Industry: Financial Services
Age: 33
Location: Sydney
Portfolio size: Mid 5 figures
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How much of your income do you put into the market?
I’m not assigning a % of income to invest. I generally take the approach of researching a few themes, then shortlist a group of stocks and invest on that basis. If there is fluctuation in the price, I’ll either invest more or wait.
Where does the rest of your money go?
I’m saving as much cash as possible waiting for the right opportunity. The rest is assigned to exorbitant costs associated with living in Sydney!
How much time do you spend on your investments / portfolio each week?
It would be hard to define and exact amount. Research is really ongoing, This comes in many forms, daily news, podcasts, blogs, market reports, market announcements and talking to friends.
What’s in your portfolio right now?
Facebook, Square, Amazon, Shopify, Alibaba, Blackstone, Starbucks, Gilead Sciences, IDP Education (ASX), RedBubble (ASX)
How are your returns?
US Based 25%
ASX Based 57%
What are you watching? Why?
Given the time I’ve put into assessing my current portfolio, I am only watching these stocks and considering further investments when prices correct. Most are correcting at the moment, so I’ll just wait and see what happens over the next few months.
A major theme I’m watching is “Food” but I’m still researching companies.
What’s the best trade you’ve ever made?
I bought Square at $27.52.
I’d admired the company for a long time. Love their product, brand and marketing. It wasn’t until Stake launched that I had considered Square an investment.
I bought RedBubble at $0.64. I think the business is extremely well managed but misunderstood hence undervalued. Trade is up 165% on current price.
And the dumbest?
I partially sold down my position in Amazon once it broke through $1000. Ouch.
Do you have a trading strategy you follow when making decisions? If so, what is it?
I try to only invest in companies that I understand.
I generally start researching a company when I like their products or if I have an interest in their business model. I then spend most of my time reading their annual reports, market commentary and assessing their competitors to determine value.
Is there anything you’re trying to improve about your strategy?
Patience and thinking long term.
I’m currently reading The Intelligent Investor by Benjamin Graham. I’d recommend it to all. I think it is important to take comfort knowing markets are always going to be up or down and holding investments for the longer term is where real value is made.
How did you first get in to trading?
My grandfather was a keen trader in the stock market and passed on a love for investing. As an early investor in Woodside Petroleum and Hardman Resources, he had a particular interest in mining and oil companies.
Do you remember the first stock you bought?
Yes, the first stock I purchased was Citigold Corporation. ASX: CTO, A gold exploration company based in Charter Towers in Queensland. The share price has fluctuated significantly over the past 15 years; the company being unable to effectively manage the capital required to fully explore their major project.
Any lessons you’d give to someone who’s never invested or traded before?
First, start with a few beginner books on investing. Learn some fundamentals and terminology.
Second, download as many analyst reports from Bulge Bracket banks as possible and read through how professionals analyze companies. The actual content and numbers are not important but understand the recurring themes of how analysts look at what is important.
Finally, start small. Open an account on Stake and invest small amounts to get a feel about what the process looks like. Gradually build up as your confidence increases.
Who do you lean on for advice with trading?
While confident in my own ability, I talk mostly with friends and colleagues. I never invest into anything recommended to me from friends without undertaking my own research. I have found most people are short term focused and concerned with hyper-growth rather than long term value investing.
If you were to buy a US stock or ETF right now, what would you buy?
AMAZON 🚀
If you are thinking long term, Amazon. AMZN is off 12% on YTD high. The investment case for Amazon is diversity in revenue sources; AWS, Amazon Prime, Advertising, Home Devices and recent acquisitions like Pill Pack and Whole Foods. Amazon is also expanding its footprint globally.
Of particular interest is Amazon’s focus on India. It already has 30% of the online market, valuing the business at $16B. GMV is forecast to reach $70B by 2027. To give this perspective, Shopify, seen as a growth stock globally is at $27B GMV.
ICYMI: make your own decisions
This is not investment advice, just my opinion. It doesn’t reflect any opinions of Stake. I’m as fresh to this as the next person off the street. Do your own research and make your own decisions. That’s where the fun is anyway.
