Back in May I identified Microsoft (MSFT) and Intel (INTC) as core positions. I have been waiting for a pullback to get into these stocks. Tech stocks are generally cyclical – peak in winter and trough in summer – and it looks like that pattern will hold true again this year. Both are down since their recent highs and both fell around 3% today. I have placed orders 10% below current market prices and I’ll wait for a bite.
- BUY MSFT @ $26.75
- BUY INTC @ $23.50
These orders were not executed as the price has remained too high. Today, 23rd July, I have increased the bid prices.
- BUY MSFT @ $28.55
- BUY INTC @ $24.70
Today, 8th August, I updated these orders.
- BUY INTC @ $25.90
- BUY MSFT @ $29.60
Today, 23rd August, my Intel order was executed. The price had fallen as Warren Buffett exited his Intel position.
Today, 10th September, the Microsoft order expired. The price is simply too high for me. I’ll wait to see how US markets perform in September (usually a bad month) before placing another order.
Today, 24th September, the Intel order looks like a bad call. Intel opened today at $22.93, down 8%!! Looks like it’s a bad idea to bet against Buffett.