In 2017, Nvidia grew 74% last year, providing a 51% return on compound return from Wayne Himelsein’s Logica Focus Fund. But Wayne’s algorithm now says AMD is more attractive. The algorithm does not always sell big winners. Netflix, which grew 53% last year, is still in the portfolio. Wayne’s success lies in making these difficult decisions, but no feelings.
One of the most difficult things investors have to learn is how to control their emotions. When a stock receives a 74% return within a year, two emotional reactions may disappoint you.
First, some people will not sell because they make a lot of money after all. Often they will not buy more stock, because it means paying a higher price than the original purchase price.
Second, some people want to sell before they are out of luck. The reality is that those who believe their own fortunes come from luck are most likely to sell at a much smaller number. Few people believe that luck will last long enough to see a 74% return.
Wayne’s quantitative model avoided these mistakes by constantly asking the same questions; are these the best stocks I can invest in? Whether a job is profitable is just one or not the most important factor in this equation.
The quantitative algorithm does not explain very well why a stock is selected. But the validity of the algorithm is proven in the long-term record. This is Wayne’s record of over 17 years.
To find out more about the “color” of stocks, I found it useful to see what the value investors are having to say about success.
In July 2015, Nate Pile purchased Nvidia for less than $ 23. Mike Durzan bought $ 13 in May 2012. Wayne Himelsein started to buy for $ 36 in October 2007. Today’s price is 230 dollars. Rex Jacobsen, another marketer, targets for $ 310.
It’s hard to find stocks that four executives with different investment styles can agree on. Just recently in June 2017, when the negative outlook released by Citron, Instinet and Pacific Crest triggered a series of significant single-day falls, Mike Durzan told us why he was in the range of $ 100 to $ 110 with a single callback s position.
Although we may like the fundamentals of Nvidia, but there is no escape from the fact that there are a lot of people betting on the stock. Big stocks like Apple did not go straight up either. When stocks are expected to grow at a rapid rate, setbacks will surely occur when short sellers one day buy both quantitative and value investors at a lower price.
Those who follow the advice of Citron, Instinet and Pacific Crest are now at a disadvantage after the share price is in the $ 100 to $ 110 range. However, these analysts will soon reiterate their suggestions of any signs of frustration. This is probably what Wayne’s algorithm got from the stock exchange.
Advanced Micro Devices
In October 2017, Tony Mitchell told us that they are acquiring AMD after a 11% drop in revenue and revenue. AMD’s transaction price is 11 dollars, and changes. Today it traded at a price of $ 12, so the jump did not happen. Since then, it has exposed a loophole in Intel’s cpus that hackers could exploit to gain access to private information such as passwords.
Intel has heard news that people think AMD cpus share the same vulnerability. AMD said the risk of their cpus vulnerability is remote.
Each major operating system has introduced a patch to close the vulnerability. However, these patches reduce CPU performance up to 25% based on workload.
This loss of performance may be small for most computer users, but a performance loss of even 5% for a company running a data center is enough for AMD to have the best chance of decades to take market share away from Intel .
Netflix rose 53% last year, slightly higher than the average of Wayne’s last year. Can you do it again this year? Wayne’s algorithm seems to think because it insists on this position.
Wayne started his marketing of Logica Focus Fund in September 2000. His average return over the past 17 years was 13.32%, equal to the 6.02% return of the S & P 500 over the same period. In the past 10 years, 5 years and 1 year, his return will be the first of any US stock fund manager. Over the past three years, Wayne Himelsein has outperformed all U.S. equity mutual fund managers.