Monday, November 19, 2018

Very greedy now, more Nvidia

I am feeling very greedy now.
Nvidia just crashed to US$152 per share, and I doubled my holdings.
There were concerns about cryptocurrency crashing, and demand for graphics card will dip.
But I made the decision based mainly on its PE.
TTM PE is around 20.
I am buying for the future, as machine learning will grow even more in future.
And graphics card is needed to power it.
The previous time I bought Nvidia was at US$230.
So I have averaged down the share price to around US$191.
My only concern is AMD.
They have a new CEO that seems to be doing a good job.
She is Lisa Su, and she is challenging Intel and Nvidia for processor and graphics card.
I might buy some AMD when it is close to US$15 per share.
But I think the demand for graphics card is good enough for 2 major competitors.
Currently AMD is not making profit, but their sales is very impressive.
Sales is around US$4, which is one quarter of their share price.

At this time of my aggressive buying, I need to balance if the market crashes.
It is still not in a crisis yet, but I only have enough fund in my Ameritrade to buy 2 more shares.
My bank account still have enough to buy around 6 lots of my Singapore shares.
But note that my 1 purchase value of Singapore share is around 3 times of my US share.
Taking into consideration I will have additional funds from my year end 13th mth bonus.
I should be doing ok in terms of keeping bullets.
And also recessions last for 6 mths to 1.5 years, so during that time I can accumulate more cash.
I also have the option of selling my precious metals to fund, but only in the event that silver price goes up during the crisis.
I also have the option of borrowing money from bank, as the current job I am in seems quite stable.

So I will be greedy while others are fearful, but keeping an eye on my warchest if crisis really hits.


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