Bama's Portfolio at the end of July 2021

“A bull market is a bull. It tries to throw off its riders.” - Richard Russell (paraphrasing) Monday, July 19 bucked a few investors off I am sure. Having conviction in the companies I own made it easy to shrug it off as just volatility.

This is my second monthly update. I love the discipline of doing them. It really makes me think hard about making moves in my portfolio when I know I have to report them to the board. A couple of times this month, I thought I had some good investing ideas and then considered what the board would say and quickly dismissed them!

One lesson I have to keep reminding myself is… You can’t buy everything and you don’t need to! In fact, I am making that a new portfolio rule for me.

I sold 7 stocks and added 5. My portfolio was slightly down for July, losing 0.84%. I have reduced positions from 20 to 18. I think I am comfortable holding around 15 to 25 for now. I really want to get down to 8-12 but I will do that as my confidence increases.

Portfolio Return (Monthly)


Jan	6.11%
Feb	-0.15%
Mar	-5.42%
Apr	1.29%
May	2.14%
Jun	14.47%
Jul   -0.84%

YTD	18.39%

Current Portfolio


Ticker  Name         July%   June%    MTD     YTD
CRWD    Crowdstrike  10.85%  15.61%   0.92%   19.73%
DDOG    Datadog      9.48%   9.92%    6.36%   12.45%
UPST    Upstart      7.39%   6.26%    -3.31%  196.34%
SNOW    Snowflake    7.09%   7.75%    9.89%   -5.57%
DOCU    Docusign     6.15%   5.73%    6.61%   34.07%
SHOP    Shopify      5.73%   5.53%    2.67%   32.51%
ROKU    Roku         5.09%   6.34%    -6.74%  29.00%
SE      Sea Ltd      5.01%   New      0.57%   38.74%
ABNB    Airbnb       4.91%   4.98%    -5.96%  -1.90%
FVRR    Fiverr       4.80%   4.64%    2.65%   27.58%
NET     Cloudflare   4.60%   6.13%    12.08%  56.11%
GLBE    Global-E Onl 4.03%   New      22.00%  187.18%
SQ      Square       4.11%   New      1.42%   13.61%
MELI    Mercadolibre 3.87%   3.81%    0.70%   -6.36%
ZS      Zscaler      3.77%   New      9.19%   18.13%
CVNA    Carvana      3.56%   2.08%    11.84%  40.92%
LSPD    Lightspeed   3.26%   New      2.30%   21.51%
FUBO    Fubotv       2.58%   3.15%    -18.90% -7.00%
PINS    Pinterest    Sold    3.78%    -25.40% -10.62%
CURLF   Curaleaf     Sold    1.63%    -14.55% 0.58%
TLRY    Tilray       Sold    1.75%    -19.19% 76.88%
FUTU    Futu         Sold    5.30%    -42.79% 123.96%
SNAP    Snap         Sold    2.28%    9.22%   48.63%
GBTC    Bitcoin      Sold    2.00%    16.54%  8.56%
ETHE    Ethereum     Sold    1.21%    0.22%   44.65%

July Portfolio Changes

7/2/21 - Trimmed NET, ROKU to 4% on valuation, Opened new position in SQ.

SNAP has had a nice rally, but it is only 2% of my portfolio. I don’t want to add more and 2% won’t make a difference so I sold all of it and started a position in LSPD, whose growth prospects seem better.

Trimmed SNOW on valuation to 7%. Added to LSPD.

7/6/21 - Sold all Crypto. Going to focus on growth stocks. Plus you get exposure to crypto through stocks like SQ. Opened a new position in ZScaler. Added to UPST.

7/8/21 - Sold FUTU, China is messing around so I am out.

CRWD went over 16%, trimmed it and put cash into SE.

7/20/21 - Sold all Weed Stocks. Put cash into ROKU, which had dropped about 10% from my last trim & CVNA which continues to power ahead. I will probably sell CVNA soon, but I think as more people go back to work and school, the used car market should continue to be strong into the fall.

7/28/21 - Started a new position in GLBE. Just watching for now.

7/30/21 - PINS reported Q2 earnings, revenue great, but I couldn’t get over that negative US user growth. It will probably be fine, but I don’t see it returning to high user growth soon.

July Company Notes

Crowdstrike
Ransomware attacks continue. Crowdstrike continues to benefit.

Datadog
New integration with Salesforce.com announced on July 1. “I am excited about this new partnership with Datadog and Salesforce Event Monitoring,” says Amanda Grady, Senior Director, Product Management, Salesforce. “One of our Platform Architects has reported that what normally took up to two weeks to investigate using multiple monitoring tools now only takes minutes and with just a few clicks.”

Cloudflare
Expensive but it keeps performing. Extremely well written article on understanding the business here. https://seekingalpha.com/article/4437429-cloudflares-moat-wh…

Snowflake

Upstart

Docusign

Roku

Shopify
Amazing how this one continues to grow. New integrations with Facebook and Google could be huge. At Shopify Unite, they announced that they are cutting fees to small developers to zero. That will hurt short term revenue but I like the long term strategy of this. Great Q2 results, Revenue of $1.11B (+55.4% Y/Y)

Square
Initiated a 4% position this month. It just looked cheap relative to other positions. Low margins but the sales growth is there and I see their products everywhere I shop. Announced new Square Banking for small business on 7/20/21. Checking and savings accounts will now be offered along with small business loans.

Futu
China keeps messing with its own companies, making me a little nervous. I feel like once they feel their message is received, they will let up, but there are too many good places to put your money to put up with this.

Fiverr
This one continues to surprise me. The growth and margins are fantastic. Could be temporary from Covid but management says it is continuing.

Mercadolibre
Impressive growth but also impressive is how they keep fighting off competition from big players like Amazon and Sea.

Pinterest
Q2 Report - Revenue of $613.21M (+125.0% Y/Y). International Revenue grew 227%. Global monthly active users rose 9% to 454M (consensus: 484.4M); U.S. MAUs fell 5% to 91M (96.1M), while international MAUs rose 13% to 363M (388.3M), Not happy about the drop in US MAU’s but average revenue per user topped expectations of $1.16, landing at $1.32 (U.S. ARPU $5.08, up 103%; International ARPU $0.36, up 163%). They are projecting growth to stay in the low 40’s for Q3. I didn’t hear anything on the earnings call that gave me confidence that this will improve. I am out for now.

Lightspeed
Added on my reopening theme.

Sea
New position. Should be a big winner in the coming economic boom I think we are going to have.

Fubotv
Big deal with Pennsylavania allowing state-wide gambling!

Airbnb
Fantastic projected growth and gross margins. Took a hit last year because of Covid. Should be a big winner for the reopening. Will the Delta variant delay the travel recovery?

Snap
Getting expensive. Sold for Lightspeed.

Carvana

Low Auto Inventory continues in July, should be good for profits.

Zscaler
New position. Cyber security is going to be huge for the foreseeable future.

Global-E Online Ltd
New position. Niche player in Global E-commerce.

Off topic
Tilray,Curaleaf

Portfolio Rules

  1. Each position must have the probability of tripling in 1-3 years.
  2. Growth must be over 40%. Some exceptions if temporary problems but no turnarounds!
  3. You must believe in the company’s prospects!
  4. Trim positions over 16%. Trim positions on temporary spikes
  5. High gross margins are important, but sales growth is more important.
  6. You can’t buy everything and you don’t need to!

Previous Month Updates
June 2021: https://discussion.fool.com/bama39s-portfolio-at-the-end-of-june…

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