November ‘22 Portfolio Summary for Jason

I’m a working husband and father that was lucky enough to find Saul’s Board and be that guy able to take full advantage of his generosity in sharing his method for investing. I have a risk profile and a conviction in Saul’s reasoning that keeps me very grateful.

2018 > +38.9%.
2019 > +32.9%
2020 > +203%
2021 > +46.8%

2022>. MTD YTD
January: (-)22.3% (-)22.3%
February: 6.4%. (-)17.3%
March: (-)1.77%. (-)18.8%
April. (-)21.76%. (-)36.5%
May. (-)25.8%. (-)52.9%
June. 8.17%. (-)49%
July. 1.51%. (-)48.3%
Aug. 12%. (-)25.3%(given in error). Actual YTD (-)42%
Sept. (-)13.9%. (-)50%
Oct. (-)4.63%. (-)53.2%(given in error). Actual(-)3.8%& (-)52%
Nov. (-)13.13%. (-)58.27%

Allocations as of 10/31/22. 11/30/22
Snowflake 25.06% Snowflake 25.19%
Cloudflare 22.00% Cloudflare 21.69%
Datadog 15.60% Datadog 14.29%
Crowdstrike 11.74% Crowdstrike 10.43%
Bill 11.56% And Bill 14.68%
MongoDB 7.08% MongoDB 6.72% 4.82% Monday 4.72%
Zscaler 2.14% Zscaler 2.25%

This portfolio is what is in our non-taxable Roth and Rollover IRAs only. We have not added any money to these accounts for many years. To buy something I’ve sold something else. I don’t trade options or use any leverage. I stay fully invested at all times and keep less than 1% in cash.

What I did: Datadog reported and I sold 20% and added that to Bill, increasing Bill by 30%, just before Bills earnings.
Why I did it: Despite my admonishing myself for adding to a position just prior to significant new information on the company, this decision was just based off the fact that I’ve been wanting more Bill; but, I didn’t know where to get the money. Datadog’s results confirmed my prior confidence in them, of equal weight with Bill. So :face_with_monocle:, not really playing earnings, but still I need to be careful with this.

What I did: I sold 16% of a ~5% position in to buy back 1/4 of the Datadog from what I’d sold , on 11/3/22, to get more Bill.

Why I did it: This was strictly sellers remorse. Seeing Datadog lower in allocation rubbed me the wrong way, when comparing my levels of confidence in my allocation to That and Monday share price went up 40% in five days when Datadog’s only went up 21% in those same 5 days🙏.
I’m keeping a 4% position in because, as I wrote is recent post (yes I’m quoting myself🤩, “As a low/no code general tool enabling enterprises to build custom links between solutions (many of them SaaS) that can easily be updated as needed, the Enterprise’s attempt to keep the right solution in front of everyone always, throughout the Company, can be realized through the use of”.

What I did: Sold a smidge of Bill to buy smidge of Crowdstrike and Zscaler.

Why I did it: I’d like to keep my habit of taking advantage of market over reactions based of FUD. Crowdstrike reported and subsequently dropped 20%:stuck_out_tongue_winking_eye:. I agree with Kurtz when he says Crowdstrike is comparable to Salesforce and the other major Industry Clouds. There was nothing surprising in the quarterly results, unless not even a smidge of softening from the macro environment wasn’t expected​:star_struck:. After my review of the report, I believe Crowdstrike deserves a premium not a discount, in their share price. Zscalers sympathy drop of 5% is similarly silly, IMO.

The challenge I set for myself, when facing any investment decision, is to accurately assess how each company I own will: efficiently ride the combining waves of adoption for their various proprietary technologies up the hockey-stick (Hypergrowth) toward becoming behemoths.(This is the over simplified iteration of why I should be invested, based on what I’ve learned from reading Saul’s Board (fully explained, to the best of my ability, in my 7/30/21)

My holding ~7% position in MongoDB is based on my understanding that Mongo has inherent in their business model every bit the leverage available to become as profitable with as high a margins and Free Cash Flows as Crowdstrike or Datadog. Mongo’s management is investing in growing their business at a time when Revenue growth has declined somewhat. Yes it’s taking MongoDB considerably longer than others I hold in my portfolio. The recent decision by their management to invest significantly more into their growth may be explained by, and my understanding is, that MongoDB is taking effective action in order to efficiently (enough) ride the combining waves of adoption for their various proprietary technologies up the hockey-stick (Hypergrowth) toward becoming a behemoth.