Lessons from Saul – Don't panic.

(Also, bring a towel???)

Ok, so for the last week or two we have had our hero Saul telling us about the triple, no, quintuple bottoms (and fat bottom girls was a risque song) that he has been seeing. This is after (for me) years of reading Saul posts telling us about all the negativity that these stocks generate and the “we told you’s” that show up on the board when the market gets a little dicey.

Before all that, I lurked here for years. I took it all in and eventually put the pieces together in my own head (no, you do not want to be in there) so that it made sense to me. High quality companies, no turnarounds, no might be’s, no ‘if’ everything thing goes perfectly…and even…NO ‘but what if and you miss out’ companies. No, nada, never, nuh uh. Ok, that finally made sense to me because numbers are numbers and if you follow the right ones then you have a strong company. Don’t bet the farm that a turn around story will actually work. (Hello Blackberry, looking at you…)

In the last year and a half I have started my road back from over THIRTY companies that I bought because of FOMO (fear of missing out) or because of story, or because, well, let’s face it…MF likes to tell us about a lot of stocks. In that time I have trimmed down to a (for Sauldom) girthy 19 stocks. (It takes TIME to lose weight people! No judgments!) The upside is that I can literally explain my whys and back it up for every one of those companies. WHA!!! Yep, I more fully understand them all.

That leads to today, and my AMAZING 4% gain from the sextuple (hey! No!) bottom of my port this year. Seriously. After months of just realizing that I know why I own everything in my port, holding strong, and reallocating from the bloated number of stocks…I was up pretty good today. This is all due to lessons from this board. THANK YOU ALL!!!

Here are some examples from this quarter’s earnings and how I have done buying companies with GREAT numbers that the market dissed, but Saul teaches us to stay focused. (Not all are Saul owned, but they have some following on this board.)

Docusign (DOCU): I’ve been building this one for a while and adding.
— 17 days ago — down (-11%)
— 8 days ago — up (5%)
— 6 days ago — up (7.6%)
— 0 days ago — up (0.27%)

Lightspeed (LSPD): Brand new to me, and part of my buy on good earnings results, and after posts here.
— 0 days ago — up (1.5%)

Magnite (MGNI): This is my lowest conviction ad sales play, and just trying out as the flipside of TDD.
— 16 days ago — down (-18%)
— 7 days ago — up (15.8%)

Cloudflare (NET): This was personally my least ‘liked’ of Sauldom stocks, but I guess I got convinced to join.
— 13 days ago — down (-2%)
— 10 days ago — up (8.2%)

Roku (ROKU): One of my favs and largest positions, it gets some love here. Also an ad play
— 72 days ago — down (-1.3%)
— 14 days ago — up (18.9 %)

Snowflake (SNOW): This might be my least ‘understood’ Saul stock, but I like what I am reading.
— 50 days ago — down (-0.8%)
— 17 days ago — up (.82%)
— 14 days ago — up (16%)
— 6 days ago — up (10.9%)

Upstart (UPST): This one is totally from Sauldom, and just as I committed, then Saul goes nuts on it!
— 8 days ago — up (44.9%)
— 7 days ago — up (62.2%) !!!
— 0 days ago — up (1%)

Zoominfo (ZI): Another totally Sauldom stock, but I am dealing with feeling dirty cause it is sales…
— 17 days ago — down (-17%)
— 15 days ago — down (-12%)
— 14 days ago — down (-5.4%)
— 7 days ago — up (6.5%)

I wanted to share all that because there is a term around Fooldom about catching the falling knife. That made sense to me all these years because I lived in a world where people questioned why was something falling in price? Should I buy now, is it a good price now, will it stop falling, did I buy too soon. I have literally not asked myself that about any of these stocks since the whole market COLLAPSED (sarcasm font) a few months back. These companies are making good money, I understand why they are making money, I like (most) of them, and then their earnings proved they are still making money. The dip was because the Market is stupid. I understood what was happening for one of the first times since I started investing 20 some years ago. I felt good about my choices.

I have sold out of and dropped positions in some stocks that have been good (even great) to me to finance my moves this quarter. (I am so busy paying down debt there is little left over for 2021 Roth contributions.)
–I am completely out of Pintrest (PINS) due to their issues with hostile workplace reports. This started about four months back, after having PINS in my port for multiple years. Good profit, probably will continue to grow. But I just don’t like them at a gut level anymore, and I have other exposure to ad spend now (SNAP, TTD, MGNI, and ROKU).
–I am at about half of my original position in TSLA now. Things there are getting too weird for me to trust the future. I will keep this amount, but I need a lot more clarity on Musk’s focus and if he is even working on TSLA anymore with his other pet projects. LOTS of profit here, and I felt time to put into companies I understand more at this time
–I am completely out of Square (SQ). I made some money here and I really liked the company line of supporting entrepreneurs to thrive. The parts of the business made sense, and I even added more through out the pandemic because I saw them surviving. Great numbers…but when the founder started using MY money to bail out a friend’s business for NO good reason and no explanation to me as a shareholder…I lost trust. No need to leave my money here.

So this is a big thank you to the board, the participants, and to Saul. I am trying to learn the lessons and to work them into my (future) retirement plans. Hopefully, I got all the above right and I am headed in the correct direction. Mostly I wanted to share my amazement at being able to stay rational this ONE time around and buy things I have conviction in, and sell the things that look great, but I am not so sure of anymore…

Thank you.

Other companies I like but not Sauldom yet:
----Etsy (similar return numbers as above)
----VACQ – a spac bringing ONLY other launching private space company public
----IPOW – a spac bringing SOFI public