Feeling More FOMO...

The headline photo is this blog is very apt for the title. Warren Buffett's Berkshire Hathaway is part of the reason that I feel like I have been missing out. I brought BKB.b at the start of last year. I thought that its cash pile would protect me if the market went down, and its portfolio of stocks would enable me to ride the market if it continued going up. As it turns out, I was right about the first part of that sentence, but I was wrong about the second part. It's portfolio of businesses largely consists of insurance, banking and oil/gas companies. These are areas of the market which have not participated in this year's 10% rise.

I said to someone the other day that I am too conservative with the satellite part of my portfolio. What I mean by this is the individual stock part of my portfolio, which is about 25%. The other 75% is the core part of my portfolio, whereby I have 3 (Smartinvest) ETFs and 1 (Milford) Managed Fund. These are weighed, largely as a consequence of market weighting, heavily towards the US Tech Giants. In saying this, I do have some Rocket Lab, but RKLB has been going down this past week, as the SpaceX IPO came onto the market.

One area where I thought that I could get some risk-on exposure earlier this year, is through the Ophir High Conviction Fund, which has a portfolio of 25-30 small to mid-cap ASX listed companies. I have realised though, that these are typically lower quality companies in the resource and tech spaces. As Ophir gets closer to the ex-dividend date on June 30, its price will rise closer to my break-even. So later this month I will sell my Ophir shares. In its place, and with my current ASX cash, I had thought about buying some GGUS units (betashares geared US), but unfortunately, I cannot buy them through my broker ASB Securities. I don't know why, maybe because I'm a NZ Citizen. Another option would be the IVV (the betashares US 500), which would then become part of my core portfolio.

With my Hatch account, I have been thinking about getting out of my underperforming Berkshire and maybe buying into TSMC or Amazon. TSMC makes the majority of the worlds semiconductor chips, but it is facing increasing competition from the likes of Intel. It is at a lower PE and PEG ratio than ASML, which is the other major semiconductor capital equipment maker. ASML has a PE of 64 and a PEG of 1.98, whereas TSMC has a PE of 34 and a PEG of 0.64. Its PEG in particular is suggesting its current share price of $440 is low relative to its growth. Its average price target from 17 analysts is $468, which is suggesting around a 5% upside. This does seem small, but as everything continues to go up, and I am thinking that I am underperforming, it is very tempting to sell my Berkshire and jump into something like a TSMC. I have some decisions to make...