Portfolio Update 5/26/20 7:00 AM (before market) I started this the other day and just finished this AM.
It’s been a month since I posted my April portfolio update found here; https://discussion.fool.com/portfolio-update-430-34492045.aspx The reason for updating a little early, is I could not sleep and thought to make use of this time.
I have found doing these updates is helping me keep better records of my investing thought processes over time. Much like keeping a journal in life when you re-read in the future it helps you remember what your thoughts were at the time of writing. Hopefully others find this helpful as well.
Current Portfolio as of 5/26/20.
Change since 4/30/20 +33.7% YTD +77.0%.
YTD S&P 500 -7.7% Nasdaq +3.9% Dow -14.3%
Stock Current % of Port % Change in Market
% of Port on 4/30 port since 3/31 Cap
AYX 23.0 37.2 -12.2 9.4B
CRWD 25.4 23.9 +1.5 17.2B
LVGO 7.5 13.7 -6.2 5.7B
ESTC 8.1 14.2 -6.1 6.25B
DDOG 15.5 8.7 +6.8 20.9B
ZM 15.4 0 +15.4 48.6B
CASH 5.1 2.3 +2.8
New positions since last portfolio update: ZM (previously owned)
Exited positions since last update: None
Trades between 5/1-5/26
Bought: ZM 5/1, 5/4, 5/8, 5/18 135.49; 160.32; 169.15
DDOG 5/4 45.07
CRWD 5/4 70.68
Sold: ESTC 5/4 61.90
AYX 5/6, 5/18 122.04; 131.27
ZM 5/18 169.15
LVGO 5/4 38.10
Thoughts on trades and companies for the month.
Right after writing my April review I sold some LVGO just before they crushed there quartely results. I was concerned that Covid would negatively effect their business, I was wrong. Sometimes over analzing your portfolio can hurt you. Lol. Thankfully I still held a good position.
I also sold some ESTC. I used the LVGO and ESTC funds to buy DDOG and ZM and CRWD. This was all done in my IRA account. I later sold some AYX and ZM in a taxable account as I had need of some money for real estate investment opportunity. I was fine with lightening up AYX as it was oversized position in my portfolio. However I wanted to re-establish my holding in ZM. I previously held ZM earlier in year. I sold it during the peak of Covid-19 panic to buy LVGO, that turned out to be a very good move.
Saul’s constant banging of the table for ZM brought me back to it. I really think he is correct with his outlook. This coronavirus is changing the world quickly and Zoom more than any other company that I can forsee looks to be the biggest benefactor of this rapid change. Guess June 2nd we will find out.
New number 1 holding CRWD 25.4%. Killed its last earnings report. Why do I like this company? Low touch sales model. This company was made for these times. It has been brought up on the board that CRWD already had a work from home culture BEFORE Covid-19. Next earnings on 6/2, looking forward to it.
Number 2 holding AYX 23.0%. Rock solid financials. No real competition. Covid slowed them down. Temporary blip as far as I am concerned. Why do I like this company? Data analysis is the future. The world will just gather more and more data. The need to easily analysis this data will increase.
Number 3 holding DDOG 15.5% Another company on fire. Seems Covid is just excellerating sales. The company is set up for digital transformation and work from home environment. Why do I like this company? Seems to be straight forward company that is growing rapidly. Its position has grown in my portfolio. Must admit not the highest of conviction, could see selling quickly if I thought the need too.
Number 4 holding ZM 15.4% Been on more Zoom meetings in the last month than the rest of my life. To say this companies growth trajectory is straight up, probably an understatement. How to value? I have no idea. Reminds me of when I owned AAPL when the iphone came out or NFLX after Blockbuster went bankrupt. Could go down in hurry, but just got a feeling it will keep going up. Next week will show a lot.
Number 5 holding ESTC 8.1% Been in this stock for over a year. Its been a laggered on price appreciation. Company meterics seem to be good. Undervalued IMO. Next week reporting. I expect price appreciation as it has been climbing into earnings, usually a good sign. Will be really interested to read cc notes and see what management thinks about Covid business environment and how that may increase sales (or not) in coming quarters.
Number 6 holding LVGO 7.5 Made a lot of money this year off LVGO. Traded out of ZM back in late March when it was up comparitively versus many other stocks and bought LVGO when it was down a bunch. I lightened up before earnings cc. It was mistake. I probably will add some more on a dip.
I originally started this update at beginning of week. Just now 5/30 finishing it. Actually up a few more percentage points YTD. What a wild ride this year. I am really looking forward to next week as I have three companies with earnings calls. I believe it will be a good week.
I underperformed the market in 2019. The Nasdaq beat me by 20%. I openly shared my results all year, just as I am doing this year. I had one poster question why I just did not invest in index, since my individual stock performance underperformed, it had a critical tone. Fortunately I am a seasoned investor and I understood that my portfolio was made up of solld companies that would eventually outperform the market.
Here we are a short 5 months later and I am crushing the Nasdaq by 70%. If I had lost faith in my own abilities and put it all in index funds, I would have greatly missed out on some serious wealth appreciation. I bring this up as an example for particularly to the newer investors on the board. You will have ups and downs over your investment career. Evaluate your portfolio on a monthly and annual basis but what really matters in average return over a investment horizon.
As always any suggestions or questions feel free to email me.