Big Portfolio Trade: Selling and Buying!

Making important changes to the portfolio to better position in this market.

I firmly believe that this is an excellent time to invest in great businesses, as the Iran War and AI disruption narratives have caused a sell-off in many good companies.

While the S&P 500 has largely recovered, many promising businesses are still available at a discount.

And today I am buying 2 such businesses.

1 of the stocks I bought today is an extremely cheap small-cap in a very unique situation.

This is a turnaround play on a company that’s going through a painful transition. If my thesis is correct, this transition will end this year, enabling the company’s stock to rise rapidly. In such a case, the stock could be 2-3x just this year.

If my thesis is correct, and this company successfully turns around its business, this is a 5-10x stock in the next 5 years.

The other stock I am buying is a less risky bet on an undervalued, fast-growing, yet very misunderstood company that is hated by the market.

If my thesis is correct, this stock could 2-3x in the next 2-3 years as the market realizes its mistake.

To raise capital for this trade, I sold a stock that was 4.6% of my portfolio.

Normally, I prefer to hold stocks for longer, but I believe these 2 other stocks have more upside in the next 1-2 years.