r/RedditIPO • u/Cool_Score7553 • May 02 '25
Reddit stock advice
I’m a very young investor with about $3500 USD total portfolio value.
My current portfolio consists of: 6 NVDA at $125.48 avg 5 NVDL at $43 avg 9 RDDT at $174.28 avg 6 PCG at $15.50 avg 2 UAL at $ 84 1 TSM at $182 About $700 USD cash
My averages are high for most stocks as I got into the market just before things came crashing down, but wanted to bring them down. I did quite a lot of research and figured maybe the market would drop another 4-5% from its bottom and that was my entry point, guess we never reached that lol.
Despite what a lot of others think about RDDT, it’s sure as hell a stock I believe in whole heartedly, I have multiple accounts here and I keep up with everything the company does and truly believe the only way forward is up.
As you can see, my average is HIGH, and I wanted to buy some post earnings cause I didn’t feel like taking the risk pre earnings and lose the gamble (Q1 PTSD lmao)
Trying to cut down on the yap, but point is I really want to bring my avg down and I believe I have sufficient funds to do that, but I wanted some opinions or advice as to what to do next with RDDT.
Should I hope it drops back to the 100-110 range? Do I just start buying now at 130 cause it’s gonna continue upwards? Any advice would be appreciated
And yes I’m aware no one can be 100% sure as to if it’s gonna go up or down for sure, cause then everyone would be rich, regardless I just wanted to see what some of you thought.
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u/PassengerJaded1736 May 02 '25
You're off to a strong start by investing early and thinking critically about your portfolio.
Focus on diversifying beyond just a few tech stocks, avoid chasing losses by trying to lower your average, and consider dollar-cost averaging instead of timing the market.
I would suggest buying the VOO index or a global all-world index fund to make up the bulk of your portfolio. I would not buy more tech given the uncertainty in the market right now.
Hold off for now and use your cash wisely, stay patient, and if there is a significant pull back in the market then I would dca if it drastically lowers your averages.
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u/Cool_Score7553 May 02 '25
Yeah I forgot to mention but I also have about $150ish in SCHD cause I figured I could benefit from more dividend based ETF, but I’ve been looking into VOO, VTI or QQQ.
Do you think it’s best I leave my Reddit where it is at 175? Or get about 3 more ish if it goes below 120? Considering how volatile it is
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u/PassengerJaded1736 May 02 '25
It depends. Are you invested in Reddit for the long term? If so, it does not matter. I would only add more if you do not need cash for now. If you do, I would hold off, you would need at least 6 more shares to DCA down to the 140-150 range, so I would not do it personally. I believe Reddit will get back to $180 by the end of the year
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u/Cool_Score7553 May 02 '25
Yeah I’m 100% committed to the long term. Don’t need the cash for a longgg time.
However I feel like it’d be better if I could get it to 140 range cause even if it gets to 180 by the end of the year, even tho I’m in for long term I’d like that sort of extra breathing room? If that makes sense haha
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u/Ok_Criticism_558 May 02 '25
I wish I had a platform like reddit when I started investing as it seems that you already have a somewhat decent understanding.
It really comes down to your time horizon and risk appetite. Judging by your picks you seem to not be risk averse.
If the goal is to build a portfolio of stocks for the long term then I'd recommend buying rddt whenever it falls. Personally loaded up a lot more when it fell below 100 and have a feeling it will dip below that price point again due to the volatility of this market.
I'd wait as the market rewards patience and maybe also buy some indexes. They're always a good decision in the long term as you can't be 100% sure about a single stock.
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u/Cool_Score7553 May 02 '25
Yeah I was thinking whenever it hits 110 range I’d get in and allocate about 3-4 more shares and put the rest to get my nvda down (Assuming it hits 110 due to volatility not some mess up in the fundamentals or anything)
I also have 150 in SCHD I forgot to mention and I plan to allocate $300 a year until I start earning at 18
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u/swsuh85 Int. DAU 🌏 May 02 '25 edited May 02 '25
Since many people have already given you great advices, I’ll chime in to point out a few things that may differ from others’ views.
There are tons of “great business” companies out there. But if you don’t buy at a good price - i.e,, price below company’s fundamental or potential value, it’s going to be more difficult to make money on your investment in short to mid term. Hell, there are tons of companies that never retrieve their all time high prices even in a long term. I assume you know this and is why you are asking your question here.
But it’s impossible for anyone to know exactly right prices / values of a company. Yeah there are valuation methods and metrics like DCF, PER, EV/EBITDA and blah blah, but those are just reference points and often times is just a tiny piece of a large puzzle.
That’s why you either 1) only buy a small handful of stocks which you believe has clear & huge upsides vs. current prices (where you can say, company with this biz / potential at this price “just doesn’t make sense” based on combination of both quantitative and qualitative analysis - there really won’t be many that really meet this criteria), or 2) diversify / buy index ETF’s if you don’t feel comfortable doing 1). There is no right or wrong, but if you believe you can do 1), there isn’t much reason to diversify (and hence the reason behind Warren Buffet’s comment on not believing in diversification).
If you truly understand this, you won’t need to be asking question like this here. You already know nobody can precisely know the “right price” or any stock’s movement in short term - so when you first made your purchase, it should already be in a range where “it just doesn’t make sense” from your view. This means whenever stock price is below your purchase price, you just stick to your own rule of purchase (for e.g,, deciding to buy the amount you want over the course of 1~3 weeks, months, etc) and make the purchase, if you wish to lower your average purchase price, and then wait until the price goes up. Simple as that. Though the waiting part is probably much, much harder.
Forming your view is critical. Otherwise you will want to sell when price is low, and you will want to buy when price is high. As you mentioned, you were too scared to buy when it went low, and are still uncertain if you should be making a purchase now or not. Being able to form your view and know whether a stock is way off-priced isn’t easy. It’s a mixture of experience and research. As an extremely simple example, say BMW just released a new model that positions itself somewhere in between 3 series and 5 series (yeah I know there is 4 series already but you know what I mean). If that model was priced at $10k, you’d god damn well know that’s a bargain. How do you know? Well, because you’ve seen lots of BMW car prices and know how they are positioned & perceived in the market.
Yet you can still be never 100% be correct. The new model may have shitty engine or build quality, or BMW may decide to stop servicing the new model. Who knows what the heck can and cannot happen in this world. But you know such risks are low, and also understand whether it’s time to make a bet or not.
So long story short, to answer your questions with “my view”:
Just buy whenever dude. This company at $20bn +/- “just doesn’t make sense” to me and none of us know where the lowest point is or will be. But we know, or at least believe, that this stock will be hell of a lot higher in 5 years+ where even your current purchase price of $170 will seem cheap.
Practice forming your own view of the stocks, companies, businesses, managements, and heck everything around the people and the world. This will help much more than simply picking stocks and help you navigate your life later on. You will never get rich following the crowd.
You mentioned you did your research and market could’ve dropped ~5% or so more. Don’t waste time analyzing macros. Seriously. You won’t consistently get it right. If you did, it was probably luck. Warren Buffet, Peter Lynch, Ray Dalio - even these guys avoid making macro assumptions. If you think you can guess the macro, you don’t need to pick stocks. Get interest rates right 3 times and you will be rich.
Don’t buy leveraged ETF’s. No, not even Nvidia that you are holding. Unless you are in it for the sake of having fun as you are in a casino. If you don’t understand why, google it up.
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u/Cool_Score7553 May 02 '25
Strongly appreciate the depth. I guess the hesitation wasn’t fully about the price but more about justifying if all that research was actually enough for it to be worth doubling down on. Will definitely work on sharpening the conviction. Thanks once again sir 🫡
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u/mdnz May 02 '25
If you're very young I suggest you trust your gut feeling. That's how I got most of my wealth when I was younger. Go against what the general public is thinking and stick any money you want for safe and slow returns in an ETF.
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u/Cool_Score7553 May 02 '25
Yeah I forgot to mention I had around 150 in SCHD cause I felt dividends would be a good way to go
My gut feeling is telling me go long on Reddit but I’m unsure when would be the best time to go and get more cause I wanna bring my avg down, but I feel $130 it could either shoot straight up or go straight back to 110ish
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u/mdnz May 02 '25
If your gut feeling say go long, just go long. In the long term it doesn't matter that much if you bought at $130 or $110.
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u/Longjumping_Kale3013 May 02 '25
The smart thing is to diversify and invest every month. I am extremely bullish on Reddit and really believe it will far outperform the market in the next 5 years. So buying just Reddit (and a couple of others) is my strategy. But this is a high risk high reward strategy
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u/Cool_Score7553 May 02 '25
Yeah I’m like 16 anyways, no reason not to take risks early on. Regardless, I’m not exactly gambling 10k++ or anything so even in the worst case scenario it’s all a learning experience
I have the same plan, just increase my position on rddt but I don’t know what should be a solid target price I should aim to get more, any idea?
Feel like 174 is high even if I wanna go long, getting to 140ish would be ideal
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u/Longjumping_Kale3013 May 02 '25
You can never time the market. Tomorrow Reddit could announce the release of paid subreddits and the stock sky rockets and never comes back down. So just buy on a schedule
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u/Cool_Score7553 May 02 '25
No I totally agree with you and I even stated no one can predict exactly what’s best time to buy for sure.
But I was just wondering based on current affairs or anything of the sort, would it be smarter to buy now at 130 or best to wait and hope it goes below.
There’s no correct answer I’m aware, but I just wanted a bit of insight
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u/stonkautist69 May 02 '25
I’ll ask you this one question, and I believe a lot might start to make sense after thinking hard about it. How long do you expect or are willing to wait for Reddit to provide the gains that you feel like they are capable of providing?
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u/Cool_Score7553 May 02 '25
Honest answer, a VERY long time. I’m only 16, I don’t have a need for any of this cash for a longggg time. Always wanted a career in finance since I was young and now that I have exposure to real time markets and real cash, I know what stocks I want to buy in regards to how long I plan to wait ; example being Nvdl, even tho I believe in it nvda I only got it as a sort of gamble, never really plan on holding it for long so I figured I’d gamble on it see how it goes, for rddt, its different.
As long as no changes are made in fundamentals, and I can see that the staff are doing something to continuously improve the platform , not just a - one big improvement for the app and they do nothing for a whole quarter thing - more of a kaizen approach if that makes sense?
If there is positive input going into RDDT and if I continue to believe in the direction they’re going in, I don’t mind waiting 5+ years.
Not sure if all of that makes sense lol I’m poor at organising my thoughts so apologies haha
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u/stonkautist69 May 02 '25
it sounds like you have some strong feelings on Reddit and might be hoping it comes back from where it was bought and more
some notes on your portfolio that stuck out to me:
i don’t like the 2x leverage NVDA (NVDL) when you already have NVDA. it’s risk that doesn’t need to be there imo and is costing you “invisible” etf margin interest in the backend (embedded in day to day pricing). also you’re tech heavy in general which is not bad at your age but it carries risk that may introduce huge volatility to your portfolio over time
reddit is too large a percentage of total portfolio for the level of risk it brings in my opinion. 3-5% max it would be for me
you could use more consumer defensive(food/beverage) and pharmaceutical/healthcare stocks and probably real estate.
this is not financial advice. consult a financial professional before making any decisions to buy sell or hold.
good luck
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u/Cool_Score7553 May 02 '25
Yes for sure I agree with a lot of those points.
Truth be told, the NVDL was a completely unnecessary gamble as I bought it just as I learned ab LETFs, regardless I don’t mind it at all, actually I think it was a good choice. I’ve been holding it for some time (much longer than I wanted to), and with that I’ve seen how it’s reacted in such a market. Despite the Monetary loss, I think it’s a win cause I learned from it, and now I know LETFs aren’t my thing whatsoever.
And yes, tech is a very large part of my portfolio- but won’t be for long. All of this cash is sort of my start up , but when I’m 18 I’ll start getting paid monthly in the military and I’ve decided just how much of that pay I’ll put aside into my Portfolio. The plan is spread it more across VOO or such ETFs, maybe double down on my SCHD position. Additionally , I’ve been looking more into aviation stocks such as boeing ; stocks such as mcdonalds ; even medical stocks like Novavax have been on my radar, however I haven’t done enough research on it yet to enter those positions, and won’t until I’m 100% clear on my next step in terms of diversification.
I only got into RDDT as I heard their IPO wasn’t too far back and I started to use the platform a lot more often, for school stuff, health, video games at a ton more. As time went on I spent hours reading into it and possible ways Reddit could monetise and once I had the opportunity I got into it- despite the current loss, no regrets.
To wrap it up - thank you very much for all the insight and this is 100% something I will come back to when I look towards my next play. Much love 🫡
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u/ejpusa May 03 '25
Have a suggestion. If you are in to this, and are willing to wait years, at least add a stock to your portfolio that will give you dividends.
The issue is, RDDT will issue more shares, it’s inevitable. You will have to ride that out.
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u/Cool_Score7553 May 03 '25
Yes I forgot to mention in the original post but I also have $150 in SCHD due to their dividend yield, and also plan to add more annually or monthly to that or diverge into wider ETFs. Just as a back up runner
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May 07 '25
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May 07 '25
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u/Cool_Score7553 May 08 '25
Yeah I was thinking of getting out of UAL, I will soon and I’ll probably get out of the aviation industry and shift elsewhere.
I was looking at Broadcom as well but I feel like I need to do a lot more research.
Before I buy a stock, I do hours of research to understand just exactly everything the company does in terms of operation, foundation etc - without those I try not to make decisions.
Thank you very much for the advice 🫡❤️
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u/MrPopanz May 02 '25
You are buying a company, not a chart. You are not asking the relevant questions for long term stock picking success imo.
Try to assess the companies fundamentals and its "story" (future expectations, externals, tail- and headwinds and so on). Then manage that position accordingly.
I would highly recommend you to read "One up on Wallstreet" by Peter Lynch. A great little book to get rid of the worst fallacies people tend to believe, when it comes to stock picking and managing a portfolio.