Bulwnkl January Portfolio Review

January Investment Portfolio Review

Growth Stock Monthly Return

January Rate of Return 9.4%
2023 Year Rate of Return 17.6% Not a great return due to hedging early in the year.
5 Year Rate of Return 41.3%

Why I invest in growth stocks. I invested in growth stocks to reach retirement, which I did in August, 2021. I emulated much of Saul’s investment style, which I credit for helping me achieve an early retirement. I have found a higher concentration in fewer, but better understood companies gives me peace and improved returns. I maintain a balance of 50% growth stocks, distributed between 6 companies.

How I use income stocks to enhance my growth stock investments. I maintain a balance of 50% income stocks distributed over 6 companies. My income is primarily through dividends and option income. I rebalance my portfolios every 6-months or so, which, at times, will increase my growth stock investments. This approach has served me well through retirement, and is why retirement remained financially viable for me. I won’t discuss income investing on this board other than to say that it’s balanced against growth investments. If anyone one wants to discuss those investments, please email me privately.

Growth Stock Allocations

Mercadolibre 23.9%
Monday 15.5%
Nvidia 13.1%
Samsara 12.8%
e.l.f. Beauty 12.4%
Nu Holdings 11.5%
Celsius Holdings 10.8%

Comments on Companies

Mercadolibre: Mercadolibre has such a large allocation because it’s grown to that point. I have reallocated money away from it several times, and damaged my portfolio performance as a result. It’s got a booming e-commerce, logistics, electronic payments, credit, and advertising businesses. They are providing vital services to Latin America and are dominant in most of their markets. Growth in all economies have a population component and a productivity component. Latin America is hitting on both of those legs of growth, AND half of Latin America is unbanked. I think growth will continue in the 50% range because off marketplace payment growth is 120% (most analysts predict lower growth). I am happily staying the course with MELI.

Monday: Monday started as a company that was concerning to me because of competitive pressure. I don’t have functional experience with their products. Gartner lists alternative products as Smartsheet, Microsoft Project (which I have used), Service Now Strategic Portfolio Management, Adobe Workfront, Clarity PPM, and about a dozen other products. Monday has seemed to developed work management tools and a Work operating system that’s ease of use is second to none. Earnings went positive at the end of 2022, and have been exploded higher. Monday didn’t achieve second place with my allocations due to timely investments but through growth. I’ve had enough of a wait and see attitude to let it grow to it’s current allocation. I have a high conviction on Monday and think more good things are on the way, but who knows what competition may bring. I intend to stay the course.

NVidia: The potential for Nvidia and AI are astounding. As disturbed as some AI thoughts make me, I also see wonderful benefits like our doctors have the benefits of all medical knowledge at their fingertips. I took a small position which has grown into my third place position. I think NVDA’s AI dominance will continue, so I plan on sticking with them.

Samsara: Because I think fleet management for airlines, trucking companies, municipalities, and waste management is lacking, I see a lot of growth for Samara. With all of the drama surrounding potentially stolen IP, I am concerned. BUT they continue to turn in good results, so I will wait and see. If I were buying today, I would only take a 5% ish bite, but I tend to do better with a little patience, so we’ll see. Some might say that I am anchoring, but waiting for negative, thesis breaking news is what I look for, so I don’t think that I am anchoring.

e.l.f. Beauty: e.l.f is great for two reasons. First, it’s got tremendous growth for a reasonable price. Second, it isn’t a tech stock. I like to get growth where ever I can find it. If it diversifies me away from tech, more the better, because it improves the diversity of my holdings. I plan to stay the course here too.

Nu Holdings: Nu Holdings’ revenues are growing by 70%, it’s TTM earnings have just flipped positive, QoQ customer increases are happening at a steady 6% for the last year, and it’s deposits are growing at about 36% YoY. They appear to be hitting critical mass, so I expect outsized profits to come in while they address the needs of the 50% of the unbanked people of Latin America. They are a high conviction stock of mine, and, apparently, Berkshire- Hathaway (strange talking about them on this board) likes them too.

Celsius Holdings: I like their international expansion in the UK and Ireland and Canada. My students at a Junior College love them, and they continue to grab US market share. They increased US market share by 3.3% last quarter. While they have had an underwhelming start of the year, they remain a strong conviction for me. I will stay the course.

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