NVDA
NVIDIA
-- 142.620 TSLA
Tesla
-- 406.580 PLTR
Palantir
-- 78.980 MSTR
MicroStrategy
-- 353.670 RGTI
Rigetti Computing
-- 13.2000 
Review of 2024 and outlook for 2025 Part 3
The profit and loss for the period from January 1 to December 31, 2024 has been finalized, so I would like to summarize.
First of all, what is clear is that achieving +186% (+52.78 million yen) with only individual US stocks was excessive, and although it turned out well in hindsight, I am convinced that there was no reproducibility. The amount I invested in US stocks at the beginning of the period was less than one-tenth of my current total assets, including this year's profits. To put it bluntly, I was investing beyond the risk tolerance limit (commonly mentioned) for a limited period.
However, the main reason for this was the belief that from the beginning of the year to the summer, the risk-return of NVDA far exceeded all other assets. At that time, NVDA was in a very unique situation where: (1) the stock price was significantly undervalued compared to the competitiveness of its products and the rapid growth of its market, (2) its financial position was extremely advantageous within the group of US companies accessing that market under overwhelming high interest rates, (3) the business was already quite mature as a company, (4) US stocks themselves were facing significant depreciation of cash due to high inflation from financial easing, (5) there was no indication supporting a decision for interest rate cuts in the US, (6) and the discussion of raising interest rates in Japan was not on the table for a certain period. As a result, the more logically I refined my strategy, the more it seemed that selling Japanese yen assets, concentrating solely on NVDA without diversifying asset classes or stocks, would reduce risks (or at least appear to reduce risks) in this very unique environment. As an active salaried worker, I was financially stable with a slight surplus in daily living expenses and a significantly larger proportion of yen assets expected from future lifetime earnings in comparison to current savings, along with no debts including loans, which also affirmed this concentrated investment approach. Many people may currently feel that if they have little savings, mostly in current deposits, or if they have just started investing through NISA and are struggling with livelihood due to yen depreciation and inflation, they don't sense the overheated economy with high stock prices.
Therefore, although for over a month, more than 95% of my assets, including recent living expenses, were invested solely in NVDA, I believe it is unlikely that all the above 10 conditions will align again.
After realizing profits from NVDA during the period, I maintained a sensible asset allocation that included cash assets for living defense. However, with the profits and principal gained from NVDA, within the assets in the moomoo brokerage account, I concentrated 50% on MSTR around the US presidential election and 70% on AVGO towards the end of the year, earning profits of $94,000 and $48,000 respectively.
Although a majority of the NISA accounts for 2023 and 2024 were invested in NVDA purchased in bulk at the beginning of each year, as the growth has already exceeded expectations in five years, it is frustrating not to be able to switch stocks. However, I have put this on hold until a review in three years.
In 2024, after carefully examining corporate performance and financial conditions, I had a profitable year because I did not hesitate to reinvest profits once I fully understood my risk tolerance. I gained a deep understanding of the power of compound interest in terms of reinvesting profits, so I intend to continue analyzing investments before and after 2025, based on that, confirming the profits and cutting losses, and maintaining a flexible asset allocation, which is a strength of personal assets.
By the way:
I'm feeling a bit nervous today because I was officially mentioned, but I don't think there are many people imitating. Both the financial environment and companies change daily, so I operate within my risk tolerance, so I hope you can just pick up the useful parts for reference. This time, I only wrote vague intentions for 2025, but I will write something if there are requests like profit taking or stop-losses since the beginning of this year, what I'm analyzing now, what I did with NISA, or if you leave a comment requesting something.
Finally, even if you think this article is helpful (for some reason, it's not as read as profit-related articles), please hop over to my page to read about the review of 2024 and the outlook for 2025 Part 2, which talks about losses. I believe I have above average risk management, so be careful not to get burnt by diving in without knowing about it.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Discussing
Trump 2.0 Era: What's the next opportunity in the markets?
▪️Could Trump's crypto policies potentially benefit the crypto market? ▪️Might his tariff policies have a positive effect on Chinese stocks
Michael McCarthy CCO
Jan 3 11:57
Ask a strategist - Trump's first day
めいちゃんの羊 : You have to look at the profit margin. Is this the profit margin?
さとこじ OP めいちゃんの羊 : Thank you for your comment. As shown in the graph, it's the profit margin.
みうちゃみ : I have read several posts!
Congratulations on the wonderful performance
In 2024, I filled the NISA growth frame with NVDA and MSTR, which is the best, and even now I'm waiting for CONL and MARA, which I still own, to surge in Bitcoin valuation loss..
In 2025, NISA plans to have TSLA TEM + something else.
It seemed that Satokoji-san was focusing on core stocks of the theme, but how much of the total investment is concentrated in one stock when focusing?
さとこじ OP みうちゃみ : Thank you for your question. As you mentioned, when focusing on concentrated investments, it is important to decide on a GAINIANBANKUAI and select several core stocks or assets to investigate and analyze the risks. Essentially, if you consider the risk to be almost 0, apart from the cash needed for daily life, you will invest all the rest. From the latter half of May 2024 to the end of June 2024, it felt like picking up money that had fallen, so regarding the credit card payment and rent due next month, the plan was to invest in NVDA until the transfer date. Even if there is a worst-case scenario of a 10% drop, 90% will still remain. At that time, it's fine to cut the portion needed in cash and liquidate, so for short-term investments of about one month, full investment will be made. Well, there aren't always such investment opportunities, so as a guideline for concentrated investments in carefully analyzed stocks, roughly 50% of the total is used as an indicator.