Happy Saturday!

It's time for another reader Q&A.

Each week, I answer all of the most interesting questions that land in my inbox.

As always, I can't provide personalized financial advice, but I'm happy to share my thoughts, research, and how I'm thinking about the market.

Let's get started.

First… A SMASH/TRASH/STASH Update

I get plenty of emails from readers suggesting new stocks and cryptos for the next edition of Smash/Trash/Stash.

Many I’ve already covered, however. Not a big deal – people get added to this email newsletter every day. But I thought I’d share a few repeats and reiterate my thoughts.

AST SpaceMobile (ASTS) – SMASH. Don’t think twice.

XRP – SMASH as a speculative crypto position.

Albemarle (ALB) – SMASH because of the growing importance of battery tech.

Redwire (RDW) – SMASH. I continue to like space infrastructure.

Bitmine Immersion Technologies (BMNR) – SMASH because I like Ethereum (ETH).

Shiba Ino – TRASH

Uber Technologies (UBER) – SMASH. Cheap and a dark horse winner of autonomous vehicles.

Do you sell covered calls on some of your positions because you need 100 shares to sell Micron (MU) calls. Would one LEAP option be a better bet? – Dennis

I do sell covered calls on some positions! You can read more about that strategy here.

Since I only own 50 shares of Micron (MU), I won't be using that strategy on this position.

And great question about LEAPS.

I did consider buying a Long-Term Equity Anticipation Security (LEAP), which is just a fancy way of saying a long-term call option.

Ultimately, I decided against it because Micron's options are extremely expensive. That's the tradeoff with volatile stocks – higher volatility usually = higher option premiums.

Since I had enough cash available in my Million Mission account, I opted to buy the shares outright.

I'll be 70 on New Year's Day. Good article you wrote about Trump Accounts. I have grandkids and always deposit stock into their accounts at Christmas time. What would your ideas be about investing in Nvidia (NVDA) for my grandkids or even myself? – Michael

Great question, Michael. It gives me an opportunity to explain an important investing concept.

There are two different types of risk: risk tolerance and risk capacity.

Risk tolerance is emotional. It's how much volatility you're comfortable living through.

Risk capacity is mathematical. It's how much risk you can actually afford to take without jeopardizing your financial future.

You and your grandkids might have the exact same risk tolerance – none of you may enjoy watching your portfolio fall 30%.

But your grandkids have a much greater risk capacity because they have decades to recover from market downturns and let compounding work its magic.

As for Nvidia (NVDA), I continue to believe it's one of the highest-quality companies in the world. The stock is very reasonably valued relative to its earnings growth, and I believe it belongs in a long-term portfolio.

That applies to investors of all ages.

The difference is position sizing.

A younger investor can afford to have a larger percentage of their portfolio in a high-growth stock like Nvidia.

At age 70, I'd still own Nvidia, but I'd pair it with a more diversified portfolio because a 70-year-old’s ability to recover from a prolonged downturn isn't the same as someone who's just starting out.

I have a question about trading in general. I invested in some cryptos a year ago and held through this pullback. But now, new cryptos have been created that may have actually improved on the same ideas my earlier investments started with. Would you liquidate even though you still believe in those positions, or do you hold? – Buck

It sounds like you're recognizing that your original thesis isn’t panning out, and that the coins you currently own might not be as impressive as newer coins.

That’s a fundamental reason for selling.

There’s another side to crypto, however, that I don’t think gets talked about enough.

I’ve written about it before: You can read it here.

Important Update: The Million Mission website is live!

I constantly get questions regarding where to find previous alerts. Well, The Million Mission website is finally live and you can check out archived alerts here.

Portfolio Overview

Here’s what I’m currently holding in The Million Mission portfolio:

Fannie Mae (FNMA) – 3,500 shares @ $6.86/share

Uber Technologies (UBER) – 200 shares @ $80/share

Nvidia (NVDA) – 200 shares @ $179/share

Micron (MU) – 50 shares @ $935/share

Special Shoutouts

Thank you to James, Tim, Walrus, Jacqueline, Edward, and Dennis who emailed in kind words and thoughtful comments.

Thanks for being along for the Mission.

Please keep the emails coming.

Talk to you on Monday.