TSLA
Tesla
-- 403.840 NVDA
NVIDIA
-- 134.290 MSTR
MicroStrategy
-- 289.620 FFIE
Faraday Future Intelligent Electric Inc.
-- 2.4300 PLTR
Palantir
-- 75.630 
Looking back at 2024 and outlook for 2025 Part 2
Previously, we conducted an overview of the overall profit and loss as of December 9, 2024, focusing on general sentiment and analyzing the stocks that generated profits. This time, I would like to reflect on the losses incurred over the past year as of December 21, 2024.
Firstly, the top loss-making stock was SMCI with a loss of approximately $18,700. I believe I was not the only one who considered SMCI alongside NVDA as the top players during the AI-related investment boom in the first half of the year, as of December 21, 2024. I still believe that the substantial investment in training facilities for AI at the time occupied a significant position in the movement surrounding AI, justifying the concentrated investment in this stock even at present. However, accounting scandals within the company posed a significant risk factor that could influence stock prices, even to the extent of the possibility of market exit, underscoring the high risk of a portfolio heavily reliant on a few companies. Following the loss realization in May, the continuous decline in the stock price raises questions not only about the possibility of delisting but also about potential audit-related changes. Therefore, I do not plan to focus my investments on this stock until all extraneous uncertainties concerning the company are resolved.
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Next, the second highest loss-making stock was COIN with a loss of approximately $15,500. This stock saw two investments in the environment where the impact of the U.S. presidential election was increasingly influential on the market, garnering attention for cryptocurrency-related stocks. Considering the significant rise of Bitcoin since the beginning of the year as of December 21, 2024, questions may arise regarding the substantial decline in stock price from the recent peak of $349 to the current $278, along with the apparent discrepancy of still holding significant profits in another cryptocurrency-related stock, MSTR, within the portfolio. However, my reasons for holding these two stocks are based on the establishment of cryptocurrency value leading to the company's value growth due to increased cryptocurrency trading activities for COIN, and the strategic ownership of Bitcoin by the company contributing to the appreciation of cryptocurrency value in the portfolio for MSTR. Therefore, concerning COIN, any positional changes would primarily relate to policy shifts from the present, and the potential for reconsideration in case of significant policy changes post the inauguration of President Trump.
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The following three stocks have a loss of approximately $4,000 to $6,000, which is less than half of the above two stocks. However, considering the size of my own assets, it is sufficiently large, so I would like to briefly touch on it. First, MOD is a facility company such as air conditioning and heating. The investment was made in anticipation of various infrastructure construction due to the US rate cut, but after confirming the high inflation, the loss was realized. Next, BRK.B made investments in the overwhelmingly excellent EPS of the company, but excluded it from the portfolio in order to invest in NVDA's sales and EPS growth, which significantly exceeded it during the same period. Regarding TSM, investment was made in response to the increase in global demand for semiconductors and the company's unparalleled market share. However, due to the rising geopolitical uncertainties centered around China and Russia, a switch was made to other stocks.
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Finally, as a summary of the loss realization this year, it is essential to consider the market environment at the time, along with new facts, policies, and to be agile in moving relative positions with some profit-taking stocks mentioned in the previous post. This was necessary to achieve returns that were above or different from the market average during rallies or declines. Therefore, I would like to be aware of the importance of thorough information gathering and rapid decision-making based on it as we move forward into 2025.
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