Post on Shopify by Tom Engle

http://discussion.fool.com/1069/hi-austin-sorry-for-the-late-rep…

You have to be a MF RB subscriber to access this, but for those who are, it will be an interesting read on what might evolve from Shopify.

Saul

9 Likes

I saw that earlier. There is definitely a big remaining potential runway for Shopify, and Tom’s ideas conveyed in his post basically coincide with your statement about not coming across many opportunities like Shopify in an investing career.

My current 8.2% position in Shopify might be a bit too small.

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Wow - over 8% in Shopify! That makes my 2.5% seem very conservative. I’ve been wrestling with what percent to keep in a basket of potential high-tech / high potential companies.

I’d be curious what people think about my allocations - and how yours compare:

  1. Facebook - 7.5%
  2. Shopify - 2.5%
  3. BZUN - 1.7%
  4. GOOGLE - 1.7%
  5. BIDU - 1.1%
  6. MOMO - 1 %
  7. TSLA - 2 %
  8. HUBS - 0 % - no holding today - but thinking of potentially adding to the basket

Rightly or wrongly, I consider these companies similar - I do feel that FB, SH, BIDU and GOOG are the safer ones and BZUN, MOMO, and TSLA are riskier. I’d be curious as to other’s thinking on these and similar companies.

Any thoughts, comments, or advice is most appreciated since I’m coming up to a point where I’ll be doing a slight re-balancing of my portfolio.

Thanks…Marc

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Any thoughts, comments, or advice is most appreciated since I’m coming up to a point where I’ll be doing a slight re-balancing of my portfolio.

There’s a slight faux pas here, Marc, to do with only your posting location. Never draw a sketch over a Rembrandt original. :slight_smile:

Other than this isn’t the place, I like your port, but think some of your positions are too small to move the needle. If a 1% position doubles, your ports gained 1%. Big whoop, not enough to buy champagne. :slight_smile:

  1. Too small, add shares if you still like it. I think FB is one of the very, very few under-priced large-caps in the market and is set to grow even more.
  2. Way too small, add on any pullback, at least 10%, move that needle!
  3. Sorry, not familiar, but it is on my next list to check out
  4. Too small, add on any pullback, also due for a price increase
  5. Too small, add on any pullback
  6. Too small, add on any pullback
  7. I’m jealous, Hold
  8. Do it, buy enough shares to make a difference

Of course this ignores your equity costs, your other holdings and your goals, along with your tolerance for risk, your age, tax situation, etc. (in other words, not enough info.) If you’re happy with your position sizes, that’s what counts, right? But you did ask. :slight_smile:

Dan

3 Likes

If a 1% position doubles, your ports gained 1%. Big whoop, not enough to buy champagne. :slight_smile:

That would depend on the size of your portfolio… or your taste in champagne. :sunglasses:

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Dan:
Thanks very much for your feedback! I like your ideas for moving the needle!

I’ll try to get my posts properly located in the the future.

…Marc

2 Likes

Thanks very much for your feedback! I like your ideas for moving the needle!

Hi Marc,

You’re welcome. However . . . Your needs are unique, as are your goals. Raptor Law #37: Listen to your gut before considering anyone else’s opinions.

Dan

1 Like

Saul et al - I’m an SA subscriber and not an RB subscriber so can’t comment on the article, but one encounter that gave me food for thought was when I was at a wedding in your uber awesome capital city last weekend; (btw why does no-one ever talk about DC, it’s always New York this and LA that and Miami whatever; I thought Washington was totally incredible).

Anyhow - I got chatting to one of the guests (not sure if he was bride or groom side - I think bride side for those more interested in the shaggy dog part of the story); it turns out he works for AMAZON in the commerce platform section based in Seattle (another under-rated city). We talked about a few areas of the business, anyhow I then mentioned Shopify and he nearly dropped his glass of champagne. He looked very surprised and asked how the hell I had heard of them, that no-one has really heard of them and that they are just a completely outstanding Amazon partner that he really rated.

It made me reflect that in our little TMF community we may have thinking of certain investments out of proportion. We might not really appreciate that in the outside world many have never heard of Shopify let alone read regular articles about the snowboarding origin story, that the merchant eCommerce market may have so much room for penetration than is already the case for Shopify and that the global investment community beyond TMF may not even have picked up on SHOP - particularly as they are Canadian and the wall of money that it could attract may not already be onboard despite our own gains.

Small anecdote of N=1 but it made me stop and rethink my perspective.

Ant

40 Likes

Thanks Ant, Very interesting and confirming anecdote!
Saul

I’ll try to get my posts properly located in the the future.

Don’t worry about it, Marc, and I didn’t mean to be snippy, only to help. The important thing is that you continue to read and to post, and this is the best place to do it. If there are a few unspoken “rules” (most good boards have some) it is meant only to keep the board on track, interesting and dynamic. They are a very small price to pay.

They are also friendly. Welcome to the board.

Dan