[INVESTMENT] MEMO - 03.05.2021 on eToro

I invested another new great company this week. Further to that, I also added more position to a long-standing Chinese company to my portfolio. If you have followed me, the great company I mentioned above is ...... NETFLIX.

NETFLIX

Its share price has dropped around 10% due to the reason that it is expected to add 6 million new subscribers in the last quarter. But when the results are released, it only added 4 million new subscribers. The management explained that the reason for the slowdown in member growth was because of the significant pace of signups during year 2020. As people anticipated being cooped up or locked down at home during the pandemic, they signed up to Netflix as their home entertainment.

The explanation given by the management does make sense. If we look at the numbers, I am actually not too worried because over the past few quarters Netflix have had achieved organic growth. Netflix also anticipates free cash flow in year 2021 at break-even and to turn positive in 2022. Fundamentally, for now, such expectation is still valid.

Netflix is my long-term investment in this platform and I will hold it forever unless there are any substantial changes to its fundamental.

To me, Netflix is the future of television network.

PING AN

I have added positions in a Chinese company called PIGNAN. Its share price has slipped close to 10% also since my last investment.

The slipped of share price was mainly because it took a hit from its exposure to a troubled property developer, taking a slice off its first-quarter profits.

Though PingAn suffered its first fall in annual net profit since 2008, its fundamental is still rock solid. Therefore, I seized this opportunity to add more position to this company for my long-term investment in greater China insurance development and prospect.

Since the inception of our fund in May 2020, we have been up close to 42.51%. April 2021 was a great month as we were up 6% solely in April 2021. We are still able to maintain our risk level at 4 as can be seen from the “average risk score”.

Stay safe.

Norman Liew

03.05.2021