I wrote some of this on another long thread but it may have gotten lost.
Last weekend, when I posted my portfolio at the end of the year, I wrote:
I also have taken two tiny positions that I don’t want to talk about yet, because I’m not sure I’ll stay in them and I don’t want anyone to buy them because I’m looking at them. They add up to just 1.3% of my portfolio, taken together.
Well, one was Impinj (PI) and the other was Square (SQ). I had mentioned earlier that I couldn’t resist when Bert and a MF newsletter both recommended Impinj on the same day. I thought about it on the long weekend and sold out of PI on Tues morning (the first trading day) at roughly $36.30. On the other hand, I have added to Square and also to my other new position Hortonworks (HDP). HDP is now inreased from a 2.5% position to a 4.0%, and SQ from a 0.3% to a 2.45 position.
I don’t usually post changes during the month, but as it was so close to the beginning of the month I thought I should tell you.
Saul
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Well, one was Impinj (PI) and the other was Square (SQ). I had mentioned earlier that I couldn’t resist when Bert and a MF newsletter both recommended Impinj on the same day. I thought about it on the long weekend and sold out of PI on Tues morning (the first trading day) at roughly $36.30.
Saul, if you would not mind sharing, what were your thoughts that resulted in you selling out of PI?
Saul, if you would not mind sharing, what were your thoughts that resulted in you selling out of PI?
Hi Speedy,
Here was my thinking about it. I have learned over the years that companies that make little hardware parts for internet or electronics always get commoditized into low margin businesses. I know that you can make a case that Impinj also has a software component and is somehow different. How convinced are you? Can’t other companies make software for a RAIN chip too? How complicated can that be? (I don’t know). I decided to go with something I felt more sure about.
Saul
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And Speedy, Impinj going down every day this week after I sold it was totally random. I had no reason to anticipate that. I just sold it for the long term reasons I just stated in my previous post.
Saul