Dans March Portfolio update

Hi everyone,

This is my second portfolio update. Below is a link to my first:

Mo.	Returns	S&P 500	Port vs. S&P
Jan	19.47%	8.74%	10.73%
Feb	13.77%	2.97%	10.80%
Mar	1.89%	1.26%	0.63%
YTD	35.13%	12.97%	22.16%

Portfolio Allocations

Ticker	% port
TTD	21.65%
KMI	12.37%
SHOP	12.20%
AYX	7.64%
TWLO	7.29%
SQ	5.46%
OKTA	5.24%
MELI	4.85%
ABMD	4.71%
Cash**	4.69%
MTCH	3.30%
STNE	2.85%
GH	2.73%
ESTC	2.57%
NVTA	2.44%

March buys:

March sells:

Why I bought what I bought:

ABMD: Y-O-Y revenue growth for the last 4 quarters were 40, 36, 37, and 30. Net margin for those same quarters were 19, 26, 28, and 30. The stock has sold off considerably and I thought it was a great time to add to a company that I plan on holding for a long time.

OKTA: Y-O-Y revenue growth for the last 4 quarters were 61, 58, 58, and 50. They guided for FY revenue growth of 34%. I calculate their current P/S ratio at ~23 (9.28 mkt cap/.399 TTM) and calculate their forward P/S ratio at ~17 (9.28 mkt cap/.535 TTM). I do not believe they only grow FY revenue at 34%, especially considering they saw 50% growth in customers with over $100,000 annual recurring revenue.

AYX and TWLO: These two have been discussed a great deal on this board, I added this month to up my allocations in both.

ESTC: I’m not savvy enough to adequately explain what they do, here is a 110 post thread from the NPI board that explains ESTC in great detail: https://discussion.fool.com/elastic-compared-to-mongo-34157530.a….

I bought ESTC without a great understanding because of the following: last quarter, revenue grew 70%, deferred revenue of $138 million grew 73%, subscription revenue was ~91% of total revenue, and they maintained at net expansion rate of 130% (for 9th consecutive Q). Due to my lack of understanding the business, I kept my allocation small. I plan to go through that thread above in its entirety.

STNE: GrowthMonkey has been all over this one. I remember seeing GM post about STNE a few months ago and for some reason didn’t buy it until the middle of March. Some things I like: their take rate increased from 1.58% to 1.88% y-o-y, subscription services and equip. rental rev. grew 138% y-o-y,and cost as a percentage of revenue fell to 44.5% from 68.5% the prior year. I’ll be looking to add to this name over time.

Looking ahead

I like where my portfolio is at (easy to say at this point in time), I trimmed my cash position, and got rid of some names I have little interest in. KMI is still a huge position, and I do plan on selling it off in chunks to add to higher growth companies… sometimes I move pretty slow on doing such a thing. The good thing about doing this write up is that it forces me to be honest and take action if I haven’t done what I said I would do.

There has been a lot of talk about Zoom lately… I plan on reading through their S1 and will post my thoughts regarding what I think is interesting or noteworthy.

Thanks to everyone who contributes to this board, it has challenged my thinking and made me a better investor!