Question for Saul

There was a thread not long ago discussing how Saul’s portfolio has changed substantially over the last couple of years. Whereas a couple years ago it was full of low PE, high growth stocks like SKX, WAB, BOFI, etc; now it includes multiple stocks that are not making any earnings at all.

I admit that I had noticed this over time as well. It is fascinating to me how the evolution has happened, and of course, how effective it has been. It also struck me tonight as I was reading an earlier post by Saul discussing the fact that he is still making plots for every stock he owns and if they don’t yet have earnings, then the earnings curve doesn’t quite make it on the plot. That got me to thinking and my question…

With that, Saul, my question is, has it happened very often before that a good number of your stocks you own don’t have earnings curves? IE, is it unusual for you that the majority of your stocks don’t have earnings?.. Have you tracked PE ratios for your stocks over time?.. Just curious if you pay attention to the types of stocks you own at a given time or do you just look for the best companies you can find and don’t worry about the overall make up and whether it is changing. Even in 2000, most of the high fliers were making money, just very high PE’s…

To be clear, I am not judging, just trying to understand your process. I will say that although I have no concerns for you, I am a little concerned that there are people on this board who with recent success have become confident that they have “figured it out” and can just keep looking for high flying, fast growing, SAAS companies and their holdings will keep growing in value. I believe you know it is not this easy, I am not sure everyone here does.

In any event, I would love to hear your perspective on how your portfolio has evolved over the years. And I am sure it has gone back and forth a few times so I am not looking for a progression as much as your thoughts on how it has changed and how often…

Just some Monday evening thoughts… and questions.

An appreciative follower of this board and your experience.