I know Cathie Wood is super popular among retail investors and I used to as well until I see her buy and dumping stocks like she is on some speed-dating. One minute, she is a big fan and buys and the next minute, she finds something more attractive and dumps a boat load. Yes, we are talking about Palantir.
So stop following her and do your own DD before you make an investment especially when it comes down to Palantir. Why? Because I believe it’s a long-term buy and it’s going to be so valuable that Microsoft ($MSFT), IBM ($IBM which shares a common trait with older men. Yup, I said it. The stock price seems to go up and fizzles) or even Salesforce ($CRM) might try to acquire it in the near future. And yes, after Amazon ($AMZN) losing some big government contracts, they might try to acquire them, too.
Why am I so bullish on Palantir?
- Their capabilities are so good that they get massive government contracts.
- Peter Thiel (do I need to say anymore?)
- 14 SPAC investments
- TAM will increase from $120 billion to $230 billion
- Lastly, they are assholes. Yes, you read this right!
Let’s focus on the 5th reason why I am bullish on Palantir. Yes, that’s not a typo. They are a bunch of assholes…who turned down small clients. My former company even approach them. They said, “we don’t work on small problems” and refused to have us as their client. Because the problem we are trying to solve was so small. They are working on $100 billion problems. Something that nobody can do. Why am I still bullish on Palantir then?
These problems, clients are willing to invest together to solve it since nobody can. So not only clients paying Palantir to solve but they are also giving them money to develop assets that Palantir can use elsewhere. Yes, this is their long term strategy. They can pick up commercial clients left and right if they want to. But that’s not their goal. It’s more long term to make them unique and differentiated in the market place and so that nobody can compete with them.
Yes, it’s a brilliant strategy. And what’s better? Their stock has been trading in a predictable range and each time Cathie buys or sells, options premium fluctuate in my favor. All you have to do is use covered calls to sell call options and use that money to buy more shares every week like I have. I now own some insane amount of Palantir shares.
Conclusion: You might not have lots of time left to do covered call strategy to accumulate Palantir shares but do it before it takes off. And of course, do your own DD before making any investment decisions.
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