About tiers
I put my companies in 3 mental tiers:
- Tier 1: Champions enjoy my highest conviction due to excellent company performance and execution. They usually have a 15+% allocation.
- Tier 2: Contenders are either rising stars due to good performance, but they lack full confidence, or past champions due to declining performance. They are sized between 5 % and 15 %.
- Tier 3: Bench – These positions are either new ones that I want to keep on my radar/get to know or fallen angels which I want to keep for some (bad) reason.
Long Story Short
That was one of my busiest months in a long time. And it was a very interesting earnings season. Usually, I don’t do that many changes to my portfolio, but it had to be done. Now, I feel comfortable with my allocations.
I feel like this is true for all of my companies in the portfolio: The danger of being too ruthless in this environment might lead me to just own 3 cybersecurity companies after the earnings season - which can’t be a winning play.
And perhaps it’s about time to get rid of the Mantra, cybersecurity is any more resilient than other sectors. Plus, if even those companies struggle, it makes me feel a bit more relaxed about all the other struggling companies in my portfolio. That’s why I decided to ride things out with some companies like Monday. But I might change my mind at any time based on the information available.
Most companies now guide very conservatively, none of them wants to get caught off guard (again). They don’t know when this environment ends and expect the worst. It is likely that we see another macro quarter in 3 months. But once we get out of that even slightly, companies will surprise us with decent beats. And that’s the upside of the current environment and time to accumulate.
If you really read through everything, I wrote: Kudos to you!
One ask: I tried different styles of writing about the companies in the review section. You might have noticed: In the Cloudflare section, I quoted more and added thoughts, while in the Zscaler section I focused on bullets instead of quotes. Which style did you like more? Please let me know via direct message/email to not clutter the board. Thank you! 
Appendix
Earnings Calendar
| Company | Earnings release | Time |
|---|---|---|
| SNOWFLAKE | 11/30/2022 | Post-Market |
| Cloudflare | 11/3/2022 | Post-Market |
| Datadog | 11/3/2022 | Pre-Market |
| Sentinel One | 12/6/2022 | Post-Market |
| Crowdstrike | 11/29/2022 | Post-Market |
| ZSCALER | 12/1/2022 | Post-Market |
| Bill | 11/3/2022 | Post-Market |
| Zoominfo | 11/1/2022 | Post-Market |
| Monday | 11/14/2022 | Pre-Market |
| The Trade Desk | 11/9/2022 | Pre-Market |
| Upstart | 11/8/2022 | Post-Market |
My Previous Portfolio Summaries
My Investing Style and About Me
→ At he bottom of my first portfolio summary
Thank you for reading.
Happy Investing, everyone!