FoolishJeff June Portfolio Update

2022 - (-56.9% YTD)
2021 – 21%
2020 - 140% (found Saul’s board in the summer of 2020)
2019 - 51%

Portfolio Breakdown vs Last Month

DDOG – 21.7% (21.5%)
S - 14.7% (13.6%)
BILL - 14.4% (14.9%)
ZS – (SOLD) 14.4%
CRWD - 13.3% (10.9%)
NET – 12.2% (9.5%)
SNOW – 12.6% (8.1%)
MDB - 8.1% (7.4%)
MNDY - 3.0% (NEW)

Watchlist - ZS, UPST

YTD Returns

DDOG - (-38%)
CRWD - (-10%)
MNDY - (-64%)
S – (-51%)
NET - (-64%)
SNOW – (-57%)
BILL - (-51%)
MDB - (-45%)

Summary: I will keep it very brief due to the holiday weekend. The tough sledding continues with high inflation and the ongoing war in Ukraine. There is a good chance of recession. However, IT spend looks strong and the valuations of our companies appear to have a lot of upside. This could be a generational buying opportunity.

DDOG (Datadog) - Still my highest confidence position. It is a mission critical company that has a lot of stickiness with it’s subscription model. It was named a Leader in the 2022 Gartner Magic Quadrant for Application Performance Monitoring and Observability. This is the second consecutive year Gartner has positioned Datadog as a Leader in its Magic Quadrant.

BILL( - No major news. I do worry that it could take a hit in a recession so I’m keeping it under a 15% allocation.

MNDY ( - I’m back in at 3% to keep an eye on it. I don’t plan on adding more until the next earnings report. I don’t like all the cash they are bleeding, however, the combination of high growth and low expectations make it one to keep an eye on or even own a small piece of.

ZS (Zscaler) - I sold out due to the red flag slowdown in the billings numbers.

NET(Cloudflare) - It’s a solid performer and shows no reason they can’t maintain 50% growth for years to come. The incredible innovation continues as they expand there security offerings, including Cloudforce One, which is a new threat operations and research team. They also won Microsoft’s Security Software Innovator of the Year Award. I added some of my Zscaler cash to the position.

SNOW - They continue to expand their Data Cloud Services. Gross Margin and Free cash flow are all trending in the right direction. The valuation has become very reasonable so I added some of my Zscaler cash to the position.

S(Sentinel One) - They had a great report. They still need to prove they can continue to move on the path to profitability. There is some risk with the Attivo acquisition and how it will affect future cash flows and revenue.

MDB (MongoDB) - I will keep it small due to it not being mission critical. Also, the open source model hasn’t proved to be successful for a lot of companies.

CRWD (Crowdsrike) - They won a few awards but no major news.

Previous Posts in 2022……………