Engineer, avid reader, and entrepreneur: when I have some money I buy great businesses at attractive prices. Profile photo: Sir Isaac Newton and me!
Milano
Joined June 2012
- Tweets20.7K
- Following115
- Followers1.7K
- Likes27.5K
Pinned Tweet
I have decided to increase my position in Astera Labs $ALAB bringing its weight to approximately 3.5% of my Rule Breakers portfolio. This addition builds on a winning investment whose business continues to strengthen, supported by exceptional revenue growth, expanding operating profitability, and opportunities to increase its dollar content per accelerator across connectivity, switching, and memory products. At a reference price of approximately $220, our probability-weighted five-year valuation implies an annualized expected return of approximately 19.8%. The sharp pullback has improved the prospective return, while the latest results reinforce my conviction in Astera’s role in AI infrastructure. Customer concentration and technology transitions remain meaningful risks, supporting a measured increase in a business closely aligned with my long-term investment convictions.
1) After putting all new cash into equities last November and December, I have kept all new funds in cash and haven’t bought anything since the end of last year.
I have now sold the remaining half of my $TQQQ position after QQQ closed more than 10% below its recent closing high, thereby completing the staged exit that began with the sale of the first half at the 5% drawdown threshold. Although this trade did not work as hoped and ultimately resulted in a loss, the exit was consistent with the predetermined risk-management rules. I will now wait for evidence of a genuine recovery in QQQ, rebuilding the position gradually with a first 1.5% allocation after a 5% rebound from the correction low and a second 1.5% allocation after a 10% rebound.
