TRADE ALERT: Bagged 35% In Less Than A Month; Time To Rotate
RDDT for a +35% gain in under 30 days — ahead of schedule. Looking for 4 new investment ideas.
Executive Summary
Sell Reddit (RDDT). Parking my capital, plus my return as cash.
Now, there's space for 4 new positions in the portfolio.
Key Context
I recommended Reddit on 22 May 2025, less than 30 days ago. Here's what I said:
In less than 30 days, the stock jumped more than 35%.
That's a very strong return, and has pulled forward my price target by more than 12 months. Since the market is willing to bring forward my return, I'm more than happy to lock in this gain.
What If RDDT Keeps Going Higher?
A few of you messaged me yesterday saying you didn’t want to sell RDDT — the stock is finally moving, so why get out now?
Fair enough. But as an Inflection investor, my job isn’t to time the exact top. My approach is more straightforward: I use the PEG ratio to find stocks where I believe the market is still underestimating future profitability.
It’s not a perfect strategy. Sometimes it doesn’t work. And when it fails, it can fail in clusters — one disappointment after another, with no good news to soften the blow.
But I’m not here to manage emotions or chase popularity. My job is to do whatever it takes to ensure I deliver outperformance against the Nasdaq over the long term.
Since no one can predict where the market’s headed, I have to stay aggressive when conditions are favorable — like now — and keep rotating the portfolio to stay fresh. Why? Because when sentiment shifts and things turn risk-off, I need to have already locked in my gains and built enough cushion to weather the next lean stretch.
That doesn’t mean I’m making a big macro call. I’m not. What I am saying is: when the market gives me upside, I have to take it — and be ready to wait when the music stops.
Final Comments
I’m now holding 20% of the portfolio in cash. And yes — I’m actively looking for new opportunities. But I won’t rush it.
Every recommendation I make must meet a strict set of criteria. I need to believe it has better than a 50% chance of delivering a solid return. That’s the bar — and I won’t lower it.
This discipline is exactly why the strategy has been working so well. I’m committed to keeping that edge for paying subscribers, even if it means sitting on cash a little longer while we wait for the right setup.
The Bottom Line
I don’t chase tops — I bank profits.
In just a few weeks, we crushed it with RDDT, delivering 35%+ return, and now I’ve got dry powder ready for four new positions. This isn’t guesswork. It’s a disciplined system that’s delivering real results.
If you’ve been with me through this, you’ve seen it work. And if you stay with me, you’ll see it work again, not every day, nor every week, and sometimes now even every quarter, but my Inflection strategy works. Small steps, long distances.