Previous Month Summaries
January: I didn’t start doing this until February
This Month My Portfolio -1.35% S&P -0.12% Nasdaq +1.89% Russell 2000 +0.80% YTD My Portfolio -12.23% S&P +6.08% Nasdaq +6.08% Russell 2000 +10.29%
Again, nothing surprising here. SKX is now a more than 20% holding, and it was down almost 6% this month. But I just continue to load up as the market undervalues this company. I also had SUNW, AHS, and CRM all down around 10-12%. The rest of my portfolio did quite well…can’t wait for these few to bounce back, too.
Changes this month, and why I made them
For the first time since I started this project, I managed not to start any new positions this month. I sold out of 4 holdings, which brings me to 16 stocks currently in my portfolio. Almost 3/4 of my portfolio is concentrated in my top 7 companies. I like the concentration into the companies I feel provide the biggest opportunities and about which I have the highest conviction.
AMZN - I’m sure this will be controversial, but I sold Amazon to buy more SKX and SHOP. Amazon is a high conviction company for me, but I can’t convince myself there aren’t better opportunities for value + growth. It also seems like it’s due to run into the law of large numbers eventually. I hate not owning it, but I just don’t believe it’s as good a place to put my money as SHOP or PAYC.
FB - Pretty much ditto with Amazon. Great company, but hard to value. And unlike Amazon, FB’s runway isn’t practically infinite. How many more users can they even get? And ad growth has to slow down eventually.
STMP - This was a try out that I just never got excited about. I cashed out a very small gain to put my money where I think it’s better suited.
P - See STMP.
CRM - Just trimmed because I like other stuff better. See adds.
SKX - Loading up. Backing up the truck. ETC ETC ETC. I think it has 50%+ upside in the next 3-6 months.
SHOP - This thing is currently growing so fast, it’s hard for Wall Street to keep up!
SEDG - bargain basement. Bought as low as 14.50/share.
SSNI - this company is severely undervalued. I think part of that may have to do with their lumpy revenues.
PAYC - second only to SHOP in growth. And they’re actually profitable!
XPO - I still believe they’ve just hit an earnings inflection point. Could be big potential in the near term.
My Current Allocations
Skechers 20.3% Shopify 12.7% Solaredge 11.2% Silver Spring Networks 8.2% Sunworks 7.9% Paycom 6.8% XPO Logistics 6.2% AMN Health 4.3% Mitek Systems 4.2% Salesforce 4.1% Splunk 4.0% Veeva Systems 3.5% Fitbit 2.3% Energous 1.6% Yelp 1.4% Perion 0.8% CASH 0.3%
Random Thoughts and Conclusions
Though some of my top holdings took sizable hits this month, I bought opportunistically and I’m optimistic about the coming month. I’ve become a little skittish about earnings season, and am toying with reducing exposure to my largest holdings before earnings are released. I hate to give up the upside, but I’ve been burned a lot this year (INFN, RUBI, SKX…) If anyone has any thoughts on that, I’m all ears.