Reduced stake of Intuitive Surgical

On Monday, I decided to reduce my holding in ISRG, making a gain of 83% on this stake.

I like what the company is doing and still think that the company has good potential to do well in the long term. However, as I have written in my earlier post Top 6 US Counters Latest Quarter May 2023, I was wary of its high valuation, especially when it looks like they are struggling to grow their top and bottom lines in the near term.

The rise of the US market over the past 3 months causes it to be even more overvalue. At the time of writing, it continues to rise as the market celebrates US latest inflation of 3.0%.

It is now trading at a whooping PE of 96. I am not that confident of its upcoming Q2 results which will be released on next Friday. I am sure they will continue to see growth but at what rate to deserve a PE of 96? Hence, I decide to take some money off the table.

Of course, I could be wrong and it might surprise with an outstanding results or outlook, causing the price to rise further. Will if that really happens, I will still rejoice given that I am still holding on to some shares in my portfolio.

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