Another down month. My portfolio ended the month down 55.5% YTD. I’m encouraged for a few reasons.
- Most of my companies are still a decent amount above their lows
- Lots of economic indicators that the Fed will stop or pivot sooner than later
- My companies are still performing very well, despite the economic slowdown
I think this earnings season will provide a lot of information;
Will the majority of my companies continue to see very little, if any, macro impact?
How will the slowdown warnings from the hyperscalers impact our companies? I think very little; especially small for companies that rely a bit less on new customers and more on upselling current customers like SNOW & ZS and to a smaller extent, NET.
More proof that SaaS is head & shoulders the best companies to invest in, especially with economic uncertainty.
Transactions:
Added to NET in the middle of the month. Wanted to beef up my position a bit due to how beaten down it got but I also really like the near-term future: the first earnings report guidance where R2 will be included.
To fund the NET, sold a little DDOG. The reason I sold DDOG is that my short-term conviction is a bit lower in them. They’re really the only of my current companies that had much macro impact. Expecting the YoY guide coming out of this quarter to indicate mid 50% YoY. Big slowdown over the past few quarters.
With my small monthly contributions, I increased my Tesla ownership the day after their report.
