Hello! Welcome back to the Middle School Investor newsletter! I am sending out this week's newsletter a day late because I got my booster shot on Friday and I did not feel well yesterday.
In the past month, the overall trend of the stock market has been to go down, especially Nasdaq(the technology companies). However, there can be some days when the stock market can go up. Thursday was one of those days. I used that opportunity to sell some stocks. I sold stocks that are risky to own at the moment, stocks with high growth and no profit. Today, the share price of some of the stocks I sold went down even lower while some went higher.
At a time like this, it is important not to panic. The profitable stocks with good dividends tend to do better when the stock market is not doing well, so I like to keep these stocks in my portfolio. Some investors make the mistake of selling profitable stocks and buying stocks with no profit when the market goes up for a day. When that happens, you should do the opposite.
I made a few trades last week (most of them were on Thursday).
Dutch Brothers: Sold 6 at $42.17 Dutch Brothers(BROS) is a great company with good growth and a bright future. I expect the price to go down to the thirties in the near future. I sold a few shares so that I would not have too many shares of BROS now so that I can buy more when the price goes down.
Rivian: Sold 2 at $65.03.
As mentioned in the previous newsletter, Rivian(RIVN) is a company with very high growth and no profit. The price of Rivian has gone nowhere but down for the past few weeks. It is not a good time to own Rivian. Thursday is one of the few days when the stock price actually increased and I used the opportunity to sell a few shares.
Splunk: Sold 4 at $120.13
The main reason I trimmed my position of Splunk(SPLK) is because I had too many shares. I sold a few shares so that I could use the money to buy other stocks, or buy more SPLK when it is at a better price.
Twitter: Sold 5 at $38.37.
I trimmed my position of Twitter(TWTR) at a similar price to what I bought it at because I just started a position and I expect the price to go down soon so that I can buy more later.
Sentinel One: Sold 5 at $44.46.
I sold Sentinel One(S) for similar reasons as Rivian. They were both overpriced and their prices are falling down rapidly.
Roblox: Bought 1 at $68.34.
Have I mentioned that Roblox(RBLX) is one of my favorite stocks to do well this year? The metaverse is very popular, especially among kids. The popularity of the metaverse started because of video games. Roblox is one of the few video game companies. Even among the video game companies, Roblox is unique and widely used. The future is technology and the metaverse. Roblox is a long term stock with high growth.
Unilever: Bought 10 at $46.66.
Unilever(UL) produces basic items we use everyday such as toothpaste, shampoo and even ice cream! Earlier this week, Unilever wanted to buy the consumer products of Glaxo for a price of 50 billion. As 50 billion was too much money, the stock price went down 15% that day. I used the opportunity to start a position in UL at a good price. The share price recovered after that day. UL is also a good stock to own at the moment because the company is profitable, they pay a good dividend and the stock is not in Nasdaq. Their products are essential and will always be needed.
Thank you for subscribing to my weekly newsletter! I will be back next Sunday!