[WEEK 28/52]: Dates, Datacenters, Dogs, and Daring Discounts
Feels like things are starting to click! I expect to turn profitable in July, highly profitable!
Hi Everyone,
For those of you who care, driving back up to Tampa for another date with her!
And then 5 of my friends are driving up Friday and we’ve rented a BNB for July 4th.
Hoping you all had a wonderful weekend.
In today’s edition we have a few cool treats.
A 75 minute podcast with myself and my two friends. Hemant and Chase. H and Chase are two of my best friends from Draper University (shoutout Tim Draper and Adam Draper))
My Good DEED of the week! I helped my house cleaners get a new dog for free!
Overview of our fund performance this past week (tough week for markets, but I’m optimistic!)
Podcast: Finance Friends, ep. 1
“Chase Builds a Datacenter.”
You may catch our convo here.
Chase lives in Arizona and has strong connections within Real Estate and land permitting.
So he’s the perfect person to be building a new datacenter. He found the power generation partner, and the datacenter operator, and he’s bringing the land and permits.
You can see their rendering below.
Provide a caption (optional)
And thanks to Kinder Morgan (KMI 0.00%↑ ) he’s going to have a natural gas supply which enables them to generate power right one site. 100’s of MWs.
You can see the three circular dome buildings are the power generation station, and the smaller units to the left are the cooling racks and GPU units.
Really cool what he is up to! I suggest you watch the episode.
Free Dog, anyone?
Every single time my house cleaners come over (not that often!! I am clean!!!), they play with my dog for 25 minutes. They love my dog.
They always ask me if I ever know where to find a similar type of mini doodle.
Well! I got word of a doodle that needed a home. So we figured out a way to get them a dog for free!!!!
This morning at 9:30 AM we connected them to their new pup, and they all look so happy!
Aw amazing day! :)
Alright Dates, Datacenters, Dogs… enough with the D’s.. let’s start talking M’s!
Fund updates below.
Fund Performance vs SPY
On 6/16 I started tracking myself vs the SPY 0.00%↑ each day.
I was mostly cash up until 6/16, and then assuming a pullback because of the 10+ week bull run, and because it’s end of Q.. I decided now was my time to take my shot.
And so I’ve been buying the SPY dip.
We formed a double helix.
I made a handful of mistakes this past week. Primarily, bought MU and MRVL and SMCI near the local top. I knew it wasn’t a great price, but let FOMO get the best of me. This has become more rare. That being said, I’ve fully recovered on
MU 0.00%↑ , and MRVL 0.00%↑ looking like it’s next.
It was tough... I almost sold.. but rather than panicking out of them... I bought the dip when it felt most painful. I scooped up some MU below $1,100.. which feels like a great move now, but felt awful at the time. And because of that perseverance, it’s canceled out my losses.
However, SMCI just had their office raided by the Taiwanese government an hour ago. So that’s crushed the stock today. If I had not bought more prior to this, I’d be a buyer.
Their growth, Elon partnership, and company history would suggest it’ll be volatile, but worth it for me.
That being said, if this turns out to be worse than I expect, I’ll sadly have to cut losses. But I don’t feel we’re at that moment yet.
-_-
My plan going into the last week was to get ahead of the July 1st re-balancing that wad sure to occur. And, it did. Most hedge funds have allocation requirements, and so at the end of a quarter they must get back to target allocations.
So if they had bought NVDA 0.00%↑ at $195 in April, and it grew to $240 by June 20th, then that profit likely puts them over allocation. Therefore, forced selling must occur at the end of the quarter to rebalance. And since all of Semi’s have run up hard this past Q.. that means a lot of forced selling in tech/semi.
My thesis on 6/16 was to buy that from them. And so, that’s what I’ve been doing all week.
I’m very nervous. But it’s better to buy into weakness than strength IMHO. MU rallied hard today, looks like it stabilized. And I expect MRVL or/and SMCI to do something similar by Weds.
We also have a short trading week, as Thursday is 1/2 day, and Friday is American’s 250th birthday!
Besides my AI mistakes.. I also made some smart moves.
I’ve been in Dave since $240, it’s now $350. And my investment into LNG 0.00%↑ is seemingly smart now that AI power gen is so necessary. A lot of my other boring names worked also, like LLY 0.00%↑ + HHH 0.00%↑ + CRK 0.00%↑
Key Lessons
I’ve spent a ton of time refining my investment process, I continue to simplify it.
Leading with common sense, and then pairing it with one main filter, “this is a really great price.”
If I don’t think it’s great, or if I think it’s an ‘okay price’ then just pass. And, wait.
After studying 100’s if not 1000’s of company financials in depth, I’m starting to get a good feel for value. I should be able to make decisions based around, “is this a great price, or not?”
The challenge I got myself in to is that some of the ones I purchased above a great price, have now re-traced to a great price. And so I can either invest more, do nothing and hope it turns up, or cut losses and say that’s a mistake which should cost me.
I’ve made no significant moves in the last few days, because I’m trying to remain Zen. I might’ve paid a bit too much for some of these AI ones, but also if the growth continues, then they’ll all pop on next earnings call.
Arguing with Grok
I was DM’ing my deck to randoms on X, and got temp. banned for ‘spam.’
I then had to argue with Grok for the next 3 days.. aka, argue with ‘customer service’ to let me back on. You have no clue how frustrating it is trying to chat with an AI who will not listen. But we got it done! We are back!!!! FOLLOW HERE!
Can’t stop, won’t stop.
~Don
