My Q1 2023 Review & Purchase - Marqeta ($MQ).
One quarter of 2023 just whisked by in the blink of an eye.
When it comes to investing, I have to juggle how to “make hay while the sun shines”; on top of holding down a 9-to-5 job. No mean feat, I say !
What Have I Done “Right” and Done “Good” ?
(1) Invest my CPF-OA Monies.
Singapore T-Bill's yields in 2021 & 2033
I managed to secure a “good” interest rate when I invested my CPF-OA monies in Singapore’s 6 months Treasury Bill (T-Bill).
What’s more it was full allocation instead of pro-rated; at a historic “high” 4.4% yield.
In short, I have made my CPF-OA monies worked +76% harder versus leaving it with CPF earning a paltry 2.5%. Hurray !
Had I known that it was going to be the “peak”, I would’ve invested more.
Who would’ve guessed that with US Fed’s continual revision of its terminal rate by +0.25% in Jan & Mar 2023 respectively, overall yield for Singapore T-Bill would continue to dip with every issue ?
(2) Investment Diversification.
MQ bought on 13 Mar 2023
I have decided to diversify my portfolio and invest in Fintech stock $Marqeta, Inc.(MQ)$; having monitored it for a while.
Founded in 2010, Marqeta is Fintech company that has a very niche role in the digital payment technology world.
It offers a worldwide, cloud-based, open API Platform for card issuance and transaction processing with notable customers like DoorDash , Klarna and Square’s Cash app.
Its ability to empower companies that issue cards to employees and customers more control over whether transactions are approved is the company’s unique value proposition.
It could perform even better than current +4.29% returns; had it not been for the 23 Mar Hindenberg Report on $Block(SQ)$; one of Marqeta’s main customers.
It affected Marqeta stock price, no thanks to short sellers.
Thankfully with commonsense prevailing, Marqeta managed to find its footing again!
Marqeta 2022 Performance, Achievements & Accolades
Looking at its 2022 achievements : (See above)
There is room for future growth because I believe that “wise” companies will leverage on fintech company like Marqeta to help manage & mitigate payments processing that is complex, constantly evolving and not a forte of most companies.
With its current stock price $4.57 still -60% off its peak, the potentials are immense as Marqeta continuous to grow its customer base with its suite of services.
Would you believe if I proclaimed that there are still lots to learn when it comes to investing ?
(1) Homework, homework and more homework.
There is no shortcut when it comes to laying the foundation for investment.
This applies to both (a) investment strategy and (b) investment (equity, ETF, REITs, bonds etc…).
One example is my 31 Mar 2023 post on “Invest in Hot AI stock - Microsoft”.
In it, I have shared a checklist of indicators (learnt while doing my homework) that could be used to quickly evaluate if a stock is investment-worthy eg. $Microsoft(MSFT)$ .
Click here to read 31 Mar 2023 post !
By keeping updated on a company’s progress and its latest support (price), I will know when a buy-opportunity presents itself.
(2) Too Big To Fail
The assumption that a “huge” Market Capitalization company will not fall is a fallacy.
Case in point is the 167 years old Swiss financial institution - $Credit Suisse Group AG(CS)$.
Given the right combinations of (i) contagion effect, (ii) massive losses incurred and (iii) lost of investors’ confidence, even a mighty giant could come crumbling down.
Below are my investment plans for the rest of 2023. Always a “work in progress” and will need “fine tuning” along the way as & when market conditions changes.
Bank stocks. Continue to monitor. I feel a “buy” opportunity may arise if US slips into a mild “recession” in H2 2023.
Energy stocks. Taking a cue from Mr Buffet’s Mar 2023 additional +2% purchase of $Occidental(OXY)$ bringing its holdings to 22.9%. I too have two “energy stocks” on my watchlist.
Portfolio Housekeeping. Conversely, if the US market turns bullish, I would definitely sell a few of my stocks purchased during my 2020 - 2021 “learning” phase. A “Marie Kondo” intervention of my portfolio is in order.
Do you have any success or failure story to share ?
Do you think you will need an action plan (put in placed) as we head into Q2 2023 ?
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great ariticle, would you like to share it?
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