FoolishJeff January Portfolio Update

Quick Intro: This is my first summary. I stumbled across Saul’s board last summer. I’ve been a Motley Fool guy for a few years and I have really come to love individual stocks after being in index/mutual funds/REITS since I was 18. This is the best board, by far, that I’ve ever read. We’re all extremely lucky to be a part of it. I try to contribute here and there when I feel I can add a bit of value. I’m 45, live in Beaverton, OR and I work for a tech company.

Past Returns
2019: 51%
2020: 140% (returns hampered as I rolled over $$ from Index/Mutual funds into individual stocks from April-June, but still a lucky and great year.)
2021: 7.1% YTD

Portfolio Breakdown

CRWD - 19.4%
NET - 11.2%
SE - 8.4%
MELI - 7.7%
ROKU - 7.6%
SQ - 7.2%
DOCU - 6.1%
ETSY - 6.1%
PTON - 6.0%
TTD - 5.2%
DDOG - 5.1%
TWLO - 4.7%
FVRR - 3.3%
FUBO - 2.2%

Brief Comments

CRWD - Firing on all Cylinders and just keeps getting better as customers add more and more modules. AI and the threat graph are the key to this first mover cloud based security beast. Patents provide a moat against copycats. Been talked about on the board ad infinitum.

NET - Accelerating growth and adding new features. I’m no techie but the combination of security and performance on the Edge looks very promising.

SE - Love this 3 headed monster. Now it’s expanding Shopee into Latin America and I like it.

MELI - Should get more love around here, it’s paypal with a large e-commerce arm. Oh yeah, did i mention that e-commerce was pulled forward 5 years by the pandemic?

ROKU - Added HBO, IMDB, and the roku channel is now on Fire TV - this stock is hot as it rides the streaming trend. Disney plus is absolutely killing it. I except more add dollars and people to shift this year than ever before.

SQ - Cash app is a cash cow. Gross profit grew over 200% last quarter. Love the crypto play and 2.5M folks used cash app to buy stocks last year. As the seller ecosystem comes back this year, square will become even stronger. The market cap is big but the seller ecosystem TAM is roughly 100B with only 3% penetration and the user ecosystem is roughly 60B TAM with only 3% penetration.

DOCU - Love the accelerating revenue and the addition of the e-notary. A bit conflicted with the pull forward growth and the wait on the CLM. I think it will become the Amazon of the legal world someday, but how long will that take?

ETSY - Love the niche play and smaller market cap. 88% of those surveyed said they bought on Etsy because they couldn’t find that item anywhere else. How much will it slow down post pandemic? I will be watching closely but I love the Moat and the Pandemic name recognition.

PTON - Love the Precor purchase, gives a foothold into commercial and helps the manufacturing base. WFH/hybrid is here to stay. It’s the apple of the fitness world and making all the right moves.

TTD - Jeff Green is one of the best CEO’s out there. Streaming is at a tipping point and CTV dollars are growing rapidly. Good job on the recent Walmart deal.

DDOG - Conflicted a bit. This stock has been running pretty sideways for the past 5 or so months but as Saul pointed out it had a pandemic slowdown and will grow off a smaller base in a quarter or two. I’m betting it will pick as cloud spends picks up again. This stock is also very expensive, will be watching the next earnings call very closely.

TWLO - Jeff Lawson’s latest book and interviews show what a great CEO he is. Solid growth and API’s are the future, spurred on by the pandemic.

FVRR - Contract work is the future of jobs and this puppy is growing like wildfire. I like the high margins. As it’s a new position, will be watching very closely.

FUBO - FuboTV is up 80% since I bought it 3 weeks ago. Love the sports/gaming angle. Could become the Netflix of live TV. Only ~500K members, I’ll be watching closely to see if it can scale and keep the ARPU rising along with strong membership growth.

ZM - sold out. Expectations are too high and the market cap too big for me. This stock will hit a trillion dollar valuation one day, but I think there are better opportunities over the short to medium term. How long will it take to monetize and capitalize on zoom phone, zoom apps, etc? I don’t know so I’d rather focus on my other companies.