VIDEO: What's Up With Our Recent Flurry of Trades?
Chris explains how while we are not traders, we will always be opportunistic with the portfolio.
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In today’s Daily Rundown video, Chris Versace discusses the flurry of portfolio activity over the last few days, including TheStreet Pro portfolio's two newest positions and register ringing.
As part of that, he explains the difference between being an active but opportunistic long-term investor, and a stock trader.
Transcript
CHRIS VERSACE: Hey, folks. Chris Versace here, Wednesday, August 7. In today's video, I want to discuss the number of actions that we've taken over the last few days. I know you've seen the alerts, but just to quickly recap, we've added to our positions in Amazon, Microsoft, Marvell, Bank of America, Morgan Stanley, and Universal Display, but we also called up the shares of Meta Platforms and, more recently, Eaton from the bullpen into the portfolio. And we also locked in some simply big gains-- massive gains, if you will-- on the shares of Lockheed Martin, and did the same following the post-earnings pop in Axon shares. So I hope you've been able to digest those trades, understand our rationale for making the moves that we did.
And I realize that it's been quite a bit over the last couple of days. We've simply done far more than we usually do. But we also have to realize that the recent market pressure has brought out opportunities to build exposure, in some cases seed new exposure, and do some harvesting if we want to stick with the planting metaphor. The idea here is that as opportunities have presented themselves, we want to take advantage of them, both to plant capital for future growth but also take advantage of extreme price movements in some cases that have led the shares to become overbought. And this is all part of the portfolio management process.
Now, that said, do I expect this level of activity to continue? Because we're active long-term investors, I don't. We're not traders. And for folks who haven't heard me describe the difference, when I say that we're active long-term investors, what I'm talking about is that we actively do the homework to identify and reaffirm our rationale for owning select positions for 12, 18, maybe 24 months, so that the thesis has enough time to breathe, to unfold. That's really the big difference.
Traders-- very short-term oriented. We don't take positions for a couple of days, a couple of weeks, in some cases, extreme cases, hours at a time. So we're going to remain active long-term investors. But as you saw over the last few days, just because we're long-term focused doesn't mean that we can't or won't be opportunistic, especially when the market environment serves up the opportunity to buy quality companies with solid prospects, and they're on sale.
Great example of that was today's pickup of Eaton. We identified that in the bullpen back in late April. We recognized the growing power pain point, as I like to say, from the expected build-out of data centers, but also the EV charging network, and overall, continued growth in electricity consumption. We waited, and we picked our spot using the recent pullback in the marketplace to pick up Eaton shares at a price point that, to be candid, we didn't think was possible back when we added them to the bullpen. But patience pays off, but so does being opportunistic and being ready to strike when the moment is right. That's why we have the bullpen.
And if you're thinking, Chris, we've pulled up Meta from the bullpen, you pulled up Eaton from the bullpen-- are we going to start rekindling some things for the bullpen, maybe making some new additions there? And I would say that as we go through the month of August, I would be surprised if we don't see one, maybe two other of land in the bullpen. No promises. Because remember, we want to have the right opportunities, and we use the bullpen to identify opportunities. But just because it's in the bullpen doesn't mean that it will graduate to the portfolio.
Sometimes it takes a lot a bit of time, just like we saw with Eaton. But there are also times when we don't see the right risk-reward opportunity, and a position may not make it into the bullpen. So please, don't think that just because something is in the bullpen, it is guaranteed being called up to the portfolio. That is not the way it works.
But in short, today's video is just a message to you saying what you've seen over the last few days, while far more active with them we tend to be, it is all part of the process in managing the portfolio that evolves for the road ahead. And with that, I would say part of our ongoing process means that we have more comments to get out to you-- Builders, Firstsource, Vulcan Materials, Labcorp. But there's also some insights that we're going to want to share from other earnings reports that have been published over the last 24 to 48 hours. Here I'm talking about Interparfum, GlobalFoundries, and a few others.
So with that, I'm going to end today's video here. But because we have more comments coming your way, some of you can probably guess what I'm about to say, but I'll say it anyway. Please be sure to check your alerts, check your emails. We want to make sure you're getting our most recent thoughts and insights. And if we happen to make any other moves with the portfolio, we want to make sure that you are right there with us.
Thanks for watching.
