+ Porsche Automobil Holdings — POAHY.<\/p>\n
+ Simon Property Group, Wynn Hotels, and Park Hotels. “Bought all six months ago. Hey, I’m a real estate guy.”<\/p>\n
+\u00a0Stink bids are happening… DIS, AAPL, SBSW, SLV will work if things keep tanking XLK, EES, ARKK….20-30% lower?<\/p>\n
+ NVTA — Invitae Corp.<\/p>\n
It’s wonderful that virtually all of these names have done so well recently.<\/p>\n
What I learned from these names:<\/p>\n
+ Your day-job really helps. You can see and feel which companies in your industry are doing well.<\/p>\n
+ Alternatively, reading, reading and reading. But start small. There are too many gotchas lurking.<\/p>\n
+ It’s insane to go after “hot” stocks without understanding why they’re hot and what can cause them to get cold fast.<\/p>\n
My background is technology. That’s an industry I sort of understand. I look for companies whose products deliver a serious advantage to their customers, and, most importantly can deliver them by using the cloud. In other words, scaleability without serious incremental costs. In\u00a0 short, they use AWS (Amazon Web Services) or other cloud software and service provider.<\/p>\n
As you can see from the list of stocks we own, I favor companies I understand. And I favor companies which get constant “buzz,” e.g. Apple, Salesforce, Amazon, Microsoft, Netflix, etc. I don’t favor companies I don’t understand, like Palantir. And I don’t favor industries I don’t understand, like cannabis and bitcoin.<\/p>\n
What went wrong at Archegos<\/strong><\/span><\/p>\n It borrowed huge amounts of money from gullible banks to go long on several stocks, but one in particular — Viacom.<\/p>\n It was a good idea — until it wasn’t. Here’s three months of Viacom. It just didn’t keep going up. Shucks!<\/p>\n Archegos had $15 billion of capital, and borrowed $65 billion to buy a total of $80 billion of stock. Archegos didn’t buy stock as you and I know it. They bought swaps, which are sort of like derivatives.<\/p>\n The selling of swaps is very profitable for banks. And the greediest, dumbest of them all, Credit Suisse, figured that that business was manna from heaven. It wasn’t. They just took a $4.7 billion hit and some of the management idiots lost their jobs and their bonuses.<\/p>\n Banks that got involved in the Archegos debacle included all the majors — with the BIG exception of the best managed big bank around — JPMorgan Chase.<\/p>\n![\"\"](\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2021\/04\/Viacom.jpg\")
\nWhen Viacom started tanking, the banks made margin calls. Archegos couldn’t pony up the money. So the banks rushed to sell stock. They hoped to sell before the other banks who had loaned Archegos money could sell. Sort of a like a race to the bottom.<\/p>\n