🚀 Why I Continue Holding Palantir Despite a US$12,780 Paper Loss on My Shares 💎📈
🌟 Looking Beyond Today’s Price
When most investors see a US$12,780 paper loss on my Palantir shares, they immediately think I have made a mistake. They only look at one side of the picture. I prefer to look at the complete investment journey instead of focusing on a temporary unrealised loss.
Today, my Palantir position shows a large paper loss on the stock itself, but my options strategy has generated over US$23,600 in cumulative options profits, leaving my overall cumulative profit at more than US$10,800. This clearly shows that investing is not simply about whether the stock price is above or below my average cost. It is about managing the entire position intelligently.
Many investors only buy and hope. I prefer to buy, generate income, reduce my cost basis, and stay patient while waiting for the company to continue growing. That is why I am comfortable holding my Palantir shares even during periods of volatility.
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🤖 Why I Still Believe in Palantir’s Long-Term Future
One of the biggest reasons I continue holding Palantir is because I believe artificial intelligence is still in its early stages. Around the world, governments and businesses are investing billions of dollars into AI infrastructure.
Palantir is no longer just a data analytics company. It has transformed into an AI software platform that helps governments, defence organisations, healthcare providers, manufacturers and commercial businesses make better decisions using massive amounts of data.
As AI adoption accelerates over the next decade, I believe companies with proven AI platforms could continue benefiting from this long-term trend. My investment thesis has always been focused on where the company could be years from now rather than where the share price is today.
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🚀 Nvidia Partnership Adds Another Growth Driver
Recently, Palantir received another major boost after announcing cooperation with Nvidia on Sovereign AI infrastructure.
This partnership attracted tremendous investor attention because many governments want to develop their own AI capabilities instead of relying entirely on foreign cloud providers.
Nvidia provides the AI chips.
Palantir provides the software platform that helps customers organise, analyse and deploy AI applications securely.
Although partnerships do not guarantee future profits, they strengthen Palantir’s position within the growing AI ecosystem. This is one of the reasons why the market has rewarded the company with a strong rally over recent trading sessions.
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📈 Why I Am Not Chasing the Rally
Palantir has risen sharply over the past several days.
Whenever a stock rallies aggressively, emotions become extremely dangerous.
Some investors experience FOMO—the fear of missing out—and buy simply because everyone else is buying.
Personally, I try not to chase strong rallies. If I want to increase my position, I prefer buying during periods of weakness instead of excitement.
Great companies can still become temporarily overextended in the short term.
Waiting patiently often provides better opportunities than buying after several consecutive green days.
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💰 Covered Calls Allow My Shares to Keep Working
One advantage of owning 100 shares is that I can sell covered calls.
Instead of allowing my shares to sit idle, I collect option premiums while waiting.
The screenshots show that I currently have covered call positions against my Palantir shares.
Every premium collected becomes immediate income deposited into my account.
This income helps offset fluctuations in the share price and reduces my effective ownership cost over time.
Even if Palantir trades sideways for several months, my shares are still generating cash flow through option premiums.
That is one reason I enjoy combining long-term investing with options strategies.
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📊 My Options Have Generated More Than US$23,600
One statistic stands out immediately.
My cumulative options profit exceeds US$23,600.
This number demonstrates why I enjoy selling options.
Rather than depending entirely on capital appreciation, I allow time decay to work in my favour.
Every option eventually expires.
As long as the position is managed carefully, option premiums can accumulate into meaningful income over many months or years.
Of course, selling options also carries risks, especially if the stock rises significantly above the strike price or falls sharply. It requires proper position sizing and active management rather than a “set and forget” approach.
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⏳ Time Is One of My Biggest Advantages
Many investors believe investing is about buying today and selling tomorrow.
I think differently.
Time is one of the greatest advantages an investor can have.
If my investment thesis remains unchanged and the company’s fundamentals continue improving, temporary price swings become less important.
The stock market often rewards patience more than constant buying and selling.
That is why I focus on the long-term business rather than daily market noise.
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📉 Paper Losses Are Not Always Permanent
A paper loss simply means the current market price is below my purchase price.
It only becomes a realised loss if I decide to sell.
Every investor experiences temporary paper losses at some point.
Instead of panicking, I ask myself one important question:
“Has the company’s long-term business fundamentally deteriorated?”
If the answer is no, then temporary volatility alone is usually not enough reason for me to abandon my investment thesis.
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🛡️ Why Diversifying My Returns Matters
Another lesson I have learned is not to depend entirely on one source of returns.
My Palantir investment demonstrates this clearly.
There are two potential return streams:
✅ Long-term appreciation of the shares.
✅ Income generated through selling covered calls.
Even if the stock takes time to recover, the option premiums continue contributing to my overall returns. This diversification of income sources is one reason I find covered calls attractive on stocks that I am comfortable owning over the long term.
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🎯 Risk Management Always Comes First
Although I am optimistic about Palantir’s future, I never assume any investment is guaranteed to succeed.
Technology stocks can be volatile.
AI spending could slow.
Competition may increase.
Government contracts may fluctuate.
For that reason, I avoid concentrating all my capital into a single stock. I also monitor the business regularly to ensure my original investment thesis still holds.
Being bullish does not mean ignoring risk.
It means understanding both the opportunities and the uncertainties before committing capital.
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🧠 Investing Is About Process, Not Emotion
Many people make decisions based purely on headlines.
When the market becomes excited, they buy.
When the market falls, they panic.
I try to follow a repeatable process instead.
I evaluate the company’s long-term prospects, assess valuation, manage my position with covered calls, and review whether the reasons I invested are still valid.
This disciplined approach helps remove emotion from my investment decisions.
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🚀 Final Thoughts
My Palantir position reminds me that successful investing is rarely about judging a portfolio from a single screenshot. While my shares currently show an unrealised loss of about US$12,780, the broader picture includes more than US$23,600 in options income and an overall cumulative profit exceeding US$10,800. That combination reflects the strategy I have chosen: owning shares in a company I believe has long-term potential while generating additional income through covered calls.
I continue to believe Palantir is well positioned to benefit from the expansion of AI, data analytics, and government technology spending. At the same time, I recognise that no investment is certain, and stock prices can be volatile. By combining long-term ownership with disciplined options management, I aim to reduce the impact of short-term market swings while staying invested in a business I believe could continue to grow over time.
For me, investing is not about predicting tomorrow’s price. It is about following a consistent process, managing risk carefully, and allowing patience and time to work in my favour. 📈💎
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