Bert gets it right. Again.

Investment Analysis Clubs Saul’s Investing Discussions
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Back on April 8th, Bert Hochfield published an article on Seeking Alpha: Shopify’s Plummet - Investors Opportunity

That article is now behind SA’s paywall, but it’s worth noting that SHOP had just 2 days earlier dropped below $350 (for the second time in a couple of weeks), and it was at $414 when the article was released to the public.

It’s over $615 today, as I write this.

Bert got it right - again!

Here’s the link in case you’re an SA or Ticker Target subscriber: https://seekingalpha.com/article/4336739-shopifys-plummet-in…

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To make a small correction…

Those that got it right bought when Shopify was trading between $30-$40 a share and never sold…

Still holding my initial position at $34.40.

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To make a small correction…
Those that got it right bought when Shopify was trading between $30-$40 a share and never sold…

No, that’s not a correction, it’s missed opportunities. LTBH doesn’t mean buying once and holding. It’s right to take advantage of opportunities to add to a good position, as well as to start a position when the market has mispriced a good company, and that’s what Bert’s article is about.

I myself have a lucky history with SHOP:

  1. I bought my first shares for $26.70 on 18May2016. I still have them, yes.
  2. I bought additional shares in 2017 & 2018, most at double-digit prices.
  3. I sold most of my shares in tax-advantaged accounts when SHOP got near $400 mid last year - I felt the stock had gotten ahead of itself (see https://discussion.fool.com/4056/do-want-to-point-out-that-this-… if you’re a TMF paid subscriber to read my rationale).
  4. I bought back those shares - and more - back a few months later when the stock dropped back to near $300 and it seemed to me the business was actually growing at a good clip. That looked really smart for a while, until the big drop earlier this month brought me to just a small delta gain (on top of my locked-in gain, though).

All of that together is far better than just buying one tranche at $34 and holding, but congrats on that. Always good to have 10X+ baggers. And again, as I said, my actions were more lucky than smart. Usually, I outsmart myself.

I did miss the recent opportunity to add more - which is what Bert got right. Of course, the stock is priced for really really high growth now (it was just really high growth before, lol). So I don’t know where this puppy goes. I do wish more on this board followed it as my own insight abilities are quite limited.

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No, that’s not a correction, it’s missed opportunities. LTBH doesn’t mean buying once and holding. It’s right to take advantage of opportunities to add to a good position, as well as to start a position when the market has mispriced a good company, and that’s what Bert’s article is about

That is the primary lesson I took from SHOP. Now when I catch a stock I believe in I tend to add on dips. So while I only bought SHOP 2xs, I have added to AYX 18 times from as low as 25.78 to as high as 110.50;TWLO 7xs,MDB 17xs,TTD 16xs etc.

Rob

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