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Technology Stocks : The New QUALCOMM - Coming Into Buy Range -- Ignore unavailable to you. Want to Upgrade?

To: waitwatchwander who wrote (9091)	6/18/2024 10:11:40 AM
From: Lance Bredvold	1 Recommendation Recommended By Harshu Vyas Read Replies (2) \| Respond to of 9128

I have continued selling calls as the price of QCOM rises. Yes, I regret having begun selling at an effective $169. Those were calls to be exercised at $155. Then $165, a smaller number at $175, then $190 and $210. Yet the regret is small and I will be hugely proud should there be a dot com like dive in the next few months. My holdings in the company long ago exceeded my rule of thumb that no more than 10% of my portfolio should consist of stock in one company and is about 23% now. After all current calls are exercised, it will still be about 17%. Having done the same kind of paring on a smaller scale back in 2000/01 I believe it to be a prudent strategy and have found sticking to my old heuristics is the best policy. Often when I veer from them I find myself regretting it soon after. I've bought back calls many times and then had the stock price decline below the original strike. That hurts. One of my main premises in gambling so highly on QCOM was that a new CEO was willing to promote the company and Snapdragon. When I heard him say that the name was well known and popular in China, it seemed to me that for the first time in QCOM's history they were going to emphasize a marketing dept. I respected the company more when it simply went about it's business and let the customer value it's output, but now I see a one time benefit in the self promoting effort. And the idea that you can promote the PE up but that you can only do it once lies at the heart of my being willing to sell calls now. I expect eventually NVDA will dive as will all the competitors currently riding the AI wave. Whether it's the whole market or just the sector, nothing grows forever. I've been wrong many times, but I only have to be right once to continue my wealth building. Or for my beneficiaries to continue benefitting. The trick is to get lucky once or twice and then be smart enough not to think I'm another Buffett. And, "oh yeah"; I still feel a lot more comfortable at a PE of 10 than at 30 even though it's fun seeing my net worth go up every day..