Key insights
- An individual investor details shifting a significant portion of their portfolio from Apple to Rocket Lab (RKLB), citing belief in RKLB's long-term growth potential and management. While not broadly indicative, it highlights the potential for capital rotation from established tech giants into growth stocks in emerging sectors like space, but also acknowledges the inherent risks and volatility associated with such a move.
Ahead of a long weekend, I wanted to share some thoughts about my (as some will likely rate it) unusual approach to investing. Please keep in mind that I have no strings attached: no kids, no pets and a generally different sense of money’s value, so I can afford to be slightly aggressive in my sentiment.
I’ve spent the last 5 years accumulating purely Apple and ignoring any noise. Never cared for Tesla, Nvidia, AI hype or anything else.
About a month ago, I discovered RKLB.
I went down the rabbit hole researching the company and as a result, over the course of the last month I sold ~$300k of Apple (40% of my portfolio), now averaging into RKLB at $106. That sounds bloody awful compared to fellow rocketeers who averaged at $4-8 per share a couple of years ago, but I have zero complaints. I entered at a phase when the company has already proved itself for long term growth, and I very much believe it's only the start. RKLB's vertical integration is second best in the current space market and what's more important, the management team is among the best in the entire public market. Rocket Lab isn’t just trying to survive another quarter, they are proactively expanding through acquisitions, infrastructure, manufacturing, defense and launch capacities. This matters a lot in the highly volatile market.
And yeah, I understand the risks: Neutron delays, tank crack headlines, SpaceX potentially dominating the market, stocks taking a dump due to volatility while you’re "mirroring" it in the restroom after your morning cup of coffee.
I think quite often people are trying to decide whether they believe in the company or just the stock price, while those are two very different things. Personally, I’m okay with sitting on my 3k shares while I continue slowly trimming Apple and pouring it into RKLB. Not because I don't believe in Apple, but because RKLB is likely going to be a major player way beyond space market over the course of the next 3-5 years.
In Peter Beck we trust, in RKLB we invest.