TPO Portfolio: How We Plan To Invest 10% Of Our Capital?
Plus, Oracle’s ER Quick Review
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Yesterday, we had sent out a note to all where we had reiterated our “buy” ratings on both Oracle ORCL 0.00%↑ and Broadcom AVGO 0.00%↑ before their earnings.
📉 So far, we have heard from Oracle, and unfortunately the stock is down -10%+ after hours, as the second consecutive quarter of revenue misses coupled with raising full-year capex spooked investors 😨.
3️⃣ Meanwhile, on the macroeconomic front, the Federal Reserve lowered its overnight borrowing rate for the third time this year by a quarter percentage point, putting it in a range between 3.5% and 3.75%.
📈 In addition to the rate decision, the Fed also announced it will resume buying Treasury securities, following up on an announcement at the October meeting that it would halt its balance sheet runoff this month.
💸 The central bank will start by buying $40B in Treasury bills, beginning Friday. From there, purchases are expected to “remain elevated for a few months” and then likely will be “significantly reduced,” amid concerns about pressures in overnight funding markets.
👉 In this post, we will provide some of our initial thoughts on Oracle post its Q3 earnings and what needs to happen from here to revive investor confidence in the stock.
➕➕We will also outline our updated investment strategy with fully transparent capital allocation plans for the TPO Portfolio (TPO=The Pragmatic Optimist) that we launched at the end of September with an initial capital of $30,000.
✂️ Earlier this week, we had trimmed one of our existing positions from the TPO Portfolio booking a profit of 27%. At the moment, we have invested close to 73% of our capital across our high conviction names from the AI Stock Rec Tracker that contains updated price targets, ratings, and conviction scores across stocks under our coverage.
💰With our latest plan that we outline in this post, we aim to bring our total capital invested 💰 from 73% to a little over 82%, while keeping 18% in cash. We believe that as long as we hold the 50 DMA for the S&P 500, we will continue to head closer to the 7000 level.
👇Note, in line with our investment action plan provided below, we have just executed a series of Live Trades, that you can see in the chat thread below, as well as in the Live Trades tab in the AI Stock Rec Tracker.