Freetrade diary #8 – August

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Shiiiiiiiiit. Late Freetrade diary post alert!!!

I’ll skim over the few bits of activity in my Freetrade account for the month of August and briefly discuss the reasons why, but I’ll be back to normal next month.

What have I topped up on?

Biffa and Visa I’ve topped up on. Not much just little additions.

Despite its recovery in the beginning of June, Biffa is back down to -10% for me. But I believe in the company long term. Offices are slowly returning (despite the threat of a second wave) pushing their Industrial sector of their business up.

Visa has had a great month and continues its recovery since the pandemic took hold. Although it’s one of the big US stocks embroiled in the heavily inflated US market, but I’m in it for the long ride whether it’s up or down.

I also received my first small dividend from Mastercard.

What have I bought that’s new?

Here we go then. A few more exciting stocks I promised myself after selling out of Renewables Infrastructure last month.

Nvidia and Sony. Two long term prospects that have boomed over the last 10 years and continue to have lots of potential (IMO).

Nvidia are producers of graphics processing chips for computers, gaming PCs and even being looked into to help construct the future self-driving car as well as Artificial Intelligence.

Their well known for creating high-quality processing chips for specialised markets in gaming (GeForce), designers (Quadro), GRID (Cloud) and Tesla for AI.

Nvidia have had a hell of a ride over the last 10 years. And despite the global situation, they continue to have a promising outlook. However, their biggest competitor in AMD could pose the greatest risk having surpassed Nvidia in GPU units shipped late last year. This could be another Visa/ Mastercard situation for me where I jump 50/50 into both rather than betting on just one.

It’s taken a hit recently in the latter parts of the months, but had risen 27% since the time of buying.

Sony. I’ve grown up with Sony from a young age since the days of the Playstation 1. Involved in the production of all manner of electrical equipment both for consumer and business use.

I bought these for the upcoming PS5 release. They’re one of the dominant game console manufacturers and their last generation dominated their Microsoft competitor. Their console exclusives offer a much better choice than Microsoft’s and hold much larger weight in the gaming community in terms of quality and variation.

The 4K generation is going to be huge. The potential for these consoles compared to the last generations is massive. AI and VR are growing from strength to strength with the potential to up-sell ad ons with these features, generating more cash flow and stronger profit margins.

Sony also own the IPs and development studios consistently pumping out high quality content. There has been a lot of controversy in the gaming community around loot box gambling and the half-arsed game released, but Sony’s games continually manage to produce quality time after time.

Let’s see what the start of the next quarter brings.

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