MSTR as a defined-risk trade for asymmetric risk-reward

Discussion in 'Crypto Assets' started by johnarb, Jun 16, 2024.

Thread Status:
Not open for further replies.
  1. Alright John, I'll add it to my 'reading list'. But if it does turn out to be a shit book, I'm going to trash it in front of you on this forum and never trust you again. :finger:
     
    #21     Jul 27, 2024
    johnarb likes this.
  2. vanzandt

    vanzandt

    Yeah. Like my 500 shares of CMG I bought at $42 and sold at $62

    So much of what you wrote in your post is so true. I'd have done the same thing.

    I think there's a lesson there for folks in their 20's that enjoy the game, be it stocks or cryptos. You can trade all you want, but if you know the story, parse off a little, buy what it is, and vow never to touch it for 30-40 years.

    Like say NVDA. Buy 20 shares. $2500. And forget you own it. And go trade your heart out on whatever if you like the thrill. But when you see a story you really believe in, even if its only 5 shares, whatever you can afford, do it.

    I knew the CMG story, and I knew it was gonna explode. Had I only put 50 shares in IRA, $2100, and vowed not to sell... 18 years later it's $125,000. What will it be 22 years from now? Never know, but $2100, you cats spend that on SBUX. Who cares if it goes to zero. But of course it won't if you know the story of what you're buying.

    Odds are JohnnyArb's grandkids will be filthy rich, as will he when he's in his 60's. Bitcoin is not going away.
     
    #22     Jul 27, 2024
    jbusse, johnarb, NoahA and 1 other person like this.
  3. But, this is a form of survivorship bias. Do not forget NVidia came so close to bankruptcy not too long ago. At one point, Apple was 30-days away from also bankruptcy when Jobs returned to pick up all the pieces.

    And Tesla literally came hours away from bankruptcy years ago.

    What about the many more who didn't luck out? The blue-chips from Lehman to Enron.

    Remember all those amazing nifty-fifty stocks that couldn't possibly go wrong? From Woolworth to Sears, Kmart, Consumers Distributing, Zellers, Kodak, etc...

    POOF...

    Let's not get too cocky here...
     
    #23     Jul 27, 2024
    jbusse, NoahA and Sprout like this.
  4. vanzandt

    vanzandt

    Well, NVDA was a generic pick for my post, not a reccy. I mean sure, there's plenty of examples of companies that went t/u. But I bet if you bought Sears in 1930 you'd have done pretty well by 1970. For every Enron, there's a Walmart. For every Kodak, an Amazon.

    You missed the entire spirit of my post. If someone thinks BTC is the next thing, then they should park whatever they can afford to let sit in it. That's what I was getting at dude. :rolleyes:
     
    #24     Jul 27, 2024
    jbusse and johnarb like this.
  5. nitrene

    nitrene

    When was this? NVDA has been a stock rocket since 2013. And it created the graphics market. It didn't even exist for the retail crowd before it started.
     
    #25     Jul 28, 2024
    vanzandt and johnarb like this.
  6. vanzandt

    vanzandt

    Yeah I was wondering about that too. I flagged it at around $70 (pre-split). It hasn't looked back.
     
    #26     Jul 28, 2024
    johnarb likes this.
  7. johnarb

    johnarb

    I think there's confusion with probably CRUS or maybe even AMD

    I looked into NVDA in 2009(?) because it's one of the few companies that was severely undervalued after the GFC, imho

    This is all from memory, just in case others jump on the specifics, nvda was around $3 to $6 per share, market cap was $300-500M, yahoo was showing free cash flow of $50-75M, NO DEBT - which meant no bankruptcy

    nvda was already the leader in PC gaming, and had good market share of the mobile graphics gaming and was entering mobile CPU market

    Personally, I was deep in debt in the 10's of thousands (CC alone) had to resort to payday or some type of advance salary loans on a pretty regular basis, which meant I could not purchase a few hundred shares of nvda, I wanted 1000, and I thought LEAPS was too short

    Anyway, nvda went up from the GFC crash just as many stocks did, I didn't follow it much, I believe it was still not properly valued for a long time, but with the AI boom, it has gone to the moon
     
    Last edited: Jul 28, 2024
    #27     Jul 28, 2024
    NoahA and vanzandt like this.
  8. vanzandt

    vanzandt

    Split adjusted, it was $2.38/share when I wrote this post. :banghead:

    https://www.elitetrader.com/et/threads/nvda.303875/
     
    #28     Jul 28, 2024
    johnarb likes this.
  9. johnarb

    johnarb

    The $3 to $6 per share I mentioned in 2009 was before 2 splits that I'm aware of 4x and 10x

    so split adjusted was NVDA at $0.075 to to $0.15 per share in 2009 with no debt and with free cash flow

    :D
     
    #29     Jul 28, 2024
  10. vanzandt

    vanzandt

    Yep, that looks about right

    upload_2024-7-28_22-11-51.jpeg
     
    #30     Jul 28, 2024
    johnarb likes this.
Thread Status:
Not open for further replies.