Downside protection by following SI/AMC

Welcome back Mooers

In today discussion, we will discuss about whether if the portfolio of top investors can continue to beat the stock market in times like high inflation, Ukraine crisis and global supply chain disruption.

Last year December 2021, in one of my post to an event organized by $Futu Holdings Ltd (FUTU.US)$ MooMoo, I wrote about how retail investors, such as Mooers, can clone the portfolio of SI (Star Institution), also known as AMC (Asset Management Company). Mooers can check out the event in the following links. Both posts by @Team moomoo .

Mooer's insights: How can we make the most of Institution Tracking
https://www.moomoo.com/community/feed/107528706064789

What?! Key to a Fortune Is within My Reach Now?
https://www.moomoo.com/community/feed/107092371046405

Also, I shared with the MooMoo community an example on how to clone the SI portfolio. Mooers can check them out in the following links.

Making the most out of Star Institution (SI) by cloning them.
https://www.moomoo.com/community/feed/107433033793542

Making the most out of Star Institution (SI) by cloning them. (Example 1)
https://www.moomoo.com/community/feed/107440101589398

Based on the WhaleIndex100, we understand that 100 stocks commonly held by SI return 157.76% in a 5 years timeframe. We also understand that S&P 500 return 108.8% for the same period.

Although SI perform better than S&P 500 for that 5 years time frame, we should also understand that SI portfolio does not always make a profit, as what my friend @Panda2102 told us in her post. Mooers can check out her post below.

Can dumb money follow the smart money to the moon?
https://www.moomoo.com/community/feed/107444920648086

However, we can always learn from them as my friend @Jamesim shared with us in his post. Mooers can check out his post below.

It's better to follow everyone's footsteps than to walk alone
https://www.moomoo.com/community/feed/107438671331734

Mooers who are following SI trades should also know that the stock price stated in the Form 13F may not be the same at the time when Mooers are performing their trades. This is best described by one of MooMoo Accredited Investor @HopeAlways as below.

Moreover, the AMC has already executed its trades by the time it filed Form 13F, which implies that the stock may not be a good investment by the time the document was filed as it was when the trade was made. Despite these caveats, the information found on Star Institutions allow us to see what stocks different funds have added to their portfolios and what they have unloaded. Either way, this could be a useful way to at least begin thinking about investing ideas.

Do checkout his post below.

Using Star Institutions Wisely
https://www.moomoo.com/community/feed/107438933409802

Lastly, there is one advantage when following reputable AMC's trades, that is some forms of downside protection for our portfolio in such high volatility period.

Higher volatility, Higher risk, Higher rewards
https://www.moomoo.com/community/feed/107813634375686

This bring us to this question: would you let AMC (a.k.a. SI) manage your money?

Hmm ... maybe Mooers are also interested in the following posts?

A small talk on whether should congress members trade stocks
https://www.moomoo.com/community/feed/107779926458374

Let Warren Buffett & Cathie Wood manage your money?
https://www.moomoo.com/community/feed/107734527508486

Do check out the performance of Example 1 for 10 Dec 2021 and 18 Feb 2022 in Appendix A, and the quotes snapshots of five SI (a.k.a. AMC) concepts in Appendix B.

Also, a quick recap of last Friday (18 Feb 2022) top 8 active stock options.
$Apple (AAPL.US)$
$Tesla (TSLA.US)$
$Advanced Micro Devices (AMD.US)$
$Palantir (PLTR.US)$
$Ford Motor (F.US)$
$Meta Platforms (FB.US)$
$Amazon (AMZN.US)$
$NVIDIA (NVDA.US)$

That’s all for today discussion, and thank you for your support and likes.

@NANA123 , your turn.

Appendix A: Stock price and weightage changes to example 1
10 Dec 2021
$Apple (AAPL.US)$ *, 179.45, 46.77%
$Bank of America (BAC.US)$ *, 44.52, 13.21%
$American Express (AXP.US)$ , 167.03, 7.44%
$Coca-Cola (KO.US)$ *, 56.28, 6.61%
$The Kraft Heinz (KHC.US)$ , 34.15, 3.27%
$Moody's (MCO.US)$ *, 397.75, 2.88%
$BYD COMPANY (01211.HK)$ , 289.8, 2.45%
$Verizon (VZ.US)$ , 50.19, 2.34%
* favourite stocks as in step 2 of Example 1, and the first number is the stock price as of 10 Dec 2021 while the second number represent the stock weightage in the portfolio.

18 Feb 2022
$Apple (AAPL.US)$ *, 167.3, 46.53%
$Bank of America (BAC.US)$ *, 45.96, 13.29%
$American Express (AXP.US)$ , 194.88, 7.32%
$Coca-Cola (KO.US)$ *, 62.54, 7.00%
$The Kraft Heinz (KHC.US)$ , 38.46, 3.46%
$Moody's (MCO.US)$ *, 323.58, 2.85%
$Verizon (VZ.US)$ , 53.83, 2.41%
$BYD COMPANY (01211.HK)$ , 246.2, 2.27%
* favourite stocks as in step 2 of Example 1, and the first number is the stock price as of 18 Feb 2022 while the second number represent the stock weightage in the portfolio.

Appendix B: Quotes snapshots

Appendix C: Quotes charts
$Apple (AAPL.US)$