On buying on a rise and not looking back!!!!

Investment Analysis Clubs Saul’s Investing Discussions
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On April 21, more than 300 million people used Zoom’s flagship videoconferencing app, up from about 200 million on April 1

Thanks WilliamDuer, you posting that link impelled me to add to my Zoom in the pre-market today…

I’ve written a lot along the way about how any stock that you buy will have been lower at some point before, and so what! You can’t go back and buy it when it was cheaper in the past. And seeing a stock you want to buy because you think it will go up, and then waiting for it to go down before you buy it is lunacy.

This morning I thanked WilliamDuer for posting that link yesterday to the Bloomberg article about Zoom’s daily users going up another 50% in three weeks, and up 30 times since the end of January, because it gave me the time to make plans for this morning!!! That additional 50% in three weeks told the world, that the short hacker pile-on attack had failed. The stock would rise seriously today.

Yesterday, Zoom finished at $150.25.

Today in the pre-market I bought a considerable bunch at $154.20. That was already up $4 but I didn’t blink, I didn’t hesitate, that was the price that it was at, so I bought. The price finished at $169.09, up $15 from where I bought, and up $19 on the day.

When the regular market opened, I bought another equal sized bunch at $157 and change. That was already up $7.00 but I didn’t hesitate, I bought. The price finished at $169.09, up $12 from where I bought, and up $19 on the day.

Later in the morning I bought a small amount in another account (just one-seventh of my total purchase for the day), at $161.70. That was already up $11.50 but I bought. The price finished at $169.09, up $7 and change from where I bought, and up $19 on the day. The closing price was a new all-time high by a large margin.

Zoom is up 164% from where it was six months ago. That means it’s at 264% of where it started. That’s what I mean about buying stocks that go up, and not looking for “bargains” on stocks that are valued cheaply, and/or don’t go up. Why should I buy a company on just hope.

That doesn’t mean if one of my high conviction stocks drops a considerable amount on FUD, that I wouldn’t accept a gift and add to it, but I really like to buy a company that is going up for a good reason. Zoom may go down tomorrow or next week, and if it does, I’ll try to scrape up some more money to buy some more.

Best to you all

Saul

A link to the Knowledgebase for this board is in the Announcements panel that is on the right side of every page on this board.

For some additions to the Knowledgebase, bringing it up to date, I’d advise reading several other posts linked to on the panel, especially “How I Pick a Company to Invest In,” and “Why My Investing Criteria Have Changed,” and “Why It Really is Different.”

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Hi Saul.

Am I correct in believing that ZM was already your largest holding?

With today’s buys wondering how large of a percentage ZM is now in your portfolio.

Also did you add funds to your financial portfolio or did you trim other positions in order to have cash to add to ZM? If so what stocks did you decide to trim.

Again I could be wrong but I was under the impression that you were and are always fully invested, so just wondering what moves you made to add to ZM.

TMB

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Saul,

I am a long time lurker but first time poster as I don’t really have anything of value to add to the discussion. Seeing you continue purchasing ZM at these ATH prices when most people consider overvalued and trying to book profits, it is awesome. Whether these purchases pan out or not, this shows that you really think differently from most other people.

It has been wonderful learning from you and following your thought process.

Please stay healthy and keep investing/sharing your wisdom with us for many more decades to come :slight_smile:

Cheers.

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Hi Saul. Am I correct in believing that ZM was already your largest holding?
With today’s buys wondering how large of a percentage ZM is now in your portfolio.

Also did you add funds to your financial portfolio or did you trim other positions in order to have cash to add to ZM? If so what stocks did you decide to trim.

Again I could be wrong but I was under the impression that you were and are always fully invested, so just wondering what moves you made to add to ZM…TMB

I don’t usually give details during the month, but I should answer your questions a bit to avoid incorrect impressions.

At the end of last month (when I did my End of Month Summary at least), Zoom was at a price of $151.70. At yesterday’s close, it was at $150.25, so it was still down 1% on the month, having fallen to a low close of $113.75 two and a half weeks ago, in the midst of the “Pile-on, short, hacker attack”. As of yesterday, my other stocks were up substantially so Zoom’s percentage of my portfolio had fallen considerably. It is now, after today’s rise, back in first place as my largest position. Today I continued to exit Coupa, reduced the little tryout position I had taken in Roku, and trimmed each of my other positions very slightly, equally, selling 1.5% of the number of shares in each position. (Note, that’s NOT reducing my position sizes by 1.5% [as from a 20.0% to 18.5% position], it was reducing the number of shares by 1.5%, which would reduce a 20.0% position to roughly a 19.7% position).

Best,

Saul

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“Whether these purchases pan out or not, this shows that you really think differently from most other people.”

FoolFan2010

If you are a follower of TMF and David Gardner in particular, you might recall that he is a big fan of following and adding to winners. “Winners Win” and “Add to My Winners” is a phrase often touted by David Gardner. Additionally David often discusses he preference of buying stocks when they are at or close to their 52-week highs as opposed to trying to wait for a quality company to go on sale. These lessons and axioms are addressed in the following podcast:

https://www.fool.com/investing/2019/05/31/the-best-investing…

Harley

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Saul,

Thank you for sharing your insight, that’s very helpful. I have a followup question about Coupa.

In your March month-end report you mentioned that you were trimming Coupa after their recent run-up in earnings so that you could purchase more ZM and AYX. From what you said just now it sounds like you are gradually trying to exit them altogether (unless I misunderstood you).

Would you mind expanding on your reasoning for that? From what I can tell (and I’m sure I’m missing a lot) Coupa still has strong growth potential with a 49% growth rate and a 46% subscription growth rate. Has your evaluation of them as a company changed or perhaps do you just see better opportunities elsewhere?

Thanks,

Calvin

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Today I continued to exit Coupa,

Looks like I missed something amongst all the noise about ZM? Can someone point me to the relevant thread where COUPA fell out of favor.

Thanks

Cham

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In your March month-end report you mentioned that you were trimming Coupa after their recent run-up in earnings so that you could purchase more ZM and AYX. From what you said just now it sounds like you are gradually trying to exit them altogether (unless I misunderstood you).

Would you mind expanding on your reasoning for that? From what I can tell (and I’m sure I’m missing a lot) Coupa still has strong growth potential with a 49% growth rate and a 46% subscription growth rate. Has your evaluation of them as a company changed or perhaps do you just see better opportunities elsewhere?

Exactly! I still very much like them as a company and an investment. It’s just that with the pandemic, I think I see better opportunities elsewhere for now.
Best,
Saul

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