Nasdaq has recovered from its
bloodshed months in February and March; however, the rising tide to lift all
boats didn’t play out too well. While most of the large cap tech stocks such as
Apple and NVIDIA have recovered in my Growth Portfolio, the mid cap stocks,
which have no bottom-line, continue to underperform.
There haven’t been any new
additions in my portfolio other than shares of the ARK Genomic Revolution ETF
(ARKG). Cathie Woods, the brain behind Ark Invest, rose to fame last year after
predicting Tesla would be a multibagger. The resulting 695% returns in Tesla’s
shares made Woods into an investment celebrity overnight, and followers have
intently taken her market predictions as gospel. In one of her interviews, she
claimed that the next Tesla could come from the genome sector, which exploded
into an overnight sensation after her novice followers jumped onto the
However, when these stock prices
ran ahead of fundamentals, the feeding frenzy died down. Following an outflow of
funds towards value stocks, I took the opportunity to reevaluate the prospects
of gene-editing companies, and purchased shares of ARKG. After all, the best
time to buy a stock is when there is blood on the streets.
For my growth portfolio, I have
increased my position in Teladoc, Opendoor, Lemonade, Palantir, Qualcomm,
Ganfeng Lithium and Tesla. As for my dividend portfolio, I divested 589 shares
of OCBC +27.69%. If local bank shares i.e. DBS, OCBC and UOB continue their
uptrend, I will take some money off the table by selling on strength.
As there hasn’t been much changes
in these short two weeks so I will update my portfolio value and share my
thoughts on Qualcomm.
I like Qualcomm’s business model
because I believe the company will be one of the biggest beneficiaries of the
5G rollout; therefore, I will progressively add more shares for Qualcomm to
become one of my top holdings. Qualcomm stands for Quality Communications, and
it derives revenue from three main segments: Qualcomm CDMA Technologies, Qualcomm
Technology Licensing and Qualcomm Strategic Initiatives.
Qualcomm Strategic Initiatives
QSI invests in young companies which complements its CDMA products and services.
It’s the smallest revenue segment and only contributes less than 0.2% of
Qualcomm CDMA Technologies
Qualcomm CDMA Technologies
concentrates their sales in processors such as the System of Chip (SoC)
Snapdragon series and X series modem. With the exception of Apple, Qualcomm
dominates the smartphone SoC market as its technology has been advancing by
leaps and bounds.
|Qualcomm hopes to get lucky with Qualcomm Snapdragon 888 5G
technology licensing segment grants the right to use its intellectual property
portfolio, and managed to get Apple on its knees by charging the smartphone
company $7.50 USD per iPhone sold. It was notoriously known for its
“no-license, no-chips” policy. In 2019, Apple wanted to use Qualcomm
chips in iPhone XS, iPhone XS Max, and XR but in light of a legal battle
between Apple and Qualcomm, the latter decided against selling chips to Apple.
The royalty dispute ended with Apple paying an estimated $5 to $6 billion in
exchange for Qualcomm to supply chips to Apple for the next six years. Although
Apple acquired Intel’s smartphone business to build its own cellular modem, it
will take years before it can begin to catch up with Qualcomm’s modem
Apple’s iPhone 13 is reportedly using Qualcomm’s Snapdragon X60 5G modem
In the past,
consumers have not felt much of an impact in the transition between 2G to 3G
beyond simple handset upgrades; however, 5G is a disruptive force and
revolutionary game changer that is the key behind remote surgeries, full
self-driving cars, and other futuristic endeavours that require the low-latency
network 5G hopes to unlock. You name it, they’ve got it However, the success of 5G much depends on
Spectrum Access, and in country like US is still facing a lack of 5G
infrastructure due to high costs and spectrum shortage. Let’s face it, we all
know that Huawei is winning the 5G race. So we are likely to see China being
the world’s no. 1 in 5G gear rollout. That probably explains why Elon Musk is
investing his automobile operations in Shanghai.
(1) Dividend Portfolio
(2) Growth Portfolio
Stock Portfolio: $469,359
Cash at Hand: $91,870
Total Portfolio value= $561,229
|Goals for 2030- 14.36% achieved
|Goals for 2022- 96.12% achieved
Portfolio 1 Net Worth (Dividend+
Portfolio 2 Net Worth: $192,197
Cash at Hand: $91,870
Net Worth (Cash + Equity):
On a side note, today happens to
be the last day of tax filing for Singapore tax resident, so please remember to
file your tax if you haven’t done so!
How did your portfolio perform in
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