Wednesday, January 13, 2021

Equity research: Lessons learned from INTC - 12% gains on Jan. 13, 2021 - New CEO appointment - buy back - billionaire 2 billionaire

 Jan. 13, 2021


I like to put together a short research called lessons learned from INTC stock gains - missing out as a value investor. 

Lessons learned 

Here are lessons I like to learn from today's missing out. 

  1. If next time billionaire investor purchased 2 billion dollars shares of INTC, and sent a letter to board of Intel. Follow him and also make 500 shares of INCT stock;
  2. $45.00 dollars I only purchased 10 shares; I did hold 200 shares of INTC back in August 2020. As a value investor, 10,000 value investor purchased INTC stock at price $45.00, and hold until next cup handle - $62.00 to sell. 
  3. Do not build confidence based on my gains. Trust my research, understand how INTC is such value stock undervalued, marginal safety is best one in the market right now. 
  4. Watch AMD Lisa Su, Jim Cramer interview, Intel CEO interview, I understood that INTC is best undervalue stock from 2018. 
  5. Read more about marginal of safety later. 

Actionable Items

Most of important is to understand myself. As a beginner, I know that I have to learn how to deal with fear and greedy. I like to invest 500 shares of INTC, but research leads me to good direction. But I only had feelings based on my experience with INTC stock purchase, I could not understand the power of value investing - marginal of safety - Sven hedge fund manager's research work. 

I am a very good researcher, this time I did not make purchase at price $45/ share, at $51/ share, at $56/ share, I chatted with wechat group. I tried to get input from others, collaborate with others. 

It is business world. I have to learn how to be a good role model, based on my hard work, research, and I have to learn to take some risk to lose 50% of capital to try this value investing model. Do not go for the easy money, understand nature instinct. 

Learning is fun. I have to limit the time on investing research. 

I have to measure how big return it is to work on this INTC stock rebound. Considering Intel is one of top 40 biggest companies in SP 500 index, and it is below fair value; I should consideer estimation of the project for me - biggest gain - $15 * 1000 share = $15,000 US dollar project. as a value invest, there is no risk to hold those 500 shares of INTC stock as well. 

In order for me to plan a project to make profit $15,000 US dollars, I have to work on a few more things. 

$15,000 dollar project - 

Each $1000 dollar possible profit - 10 hours study and work 

150 hours work - preparation and project management

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