Portfolio Update 9/30/20 8PM
It’s been slightly over a month since I posted my August portfolio update found here;
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 9/30/20. Change since 8/29/20 +14.1% YTD +170.7%. YTD S&P 500 +0.2% Nasdaq +24.5% Dow -6.2% Stock Current % of Port % Change Market % of Port on 8/29 in port since 8/29 Cap DDOG 19.3 16.2 +3.1 30.2B ZM 17.8 23.7 -5.9 125.2B CRWD 17.4 21.3 -4.9 29.5B TCNNF 7.3 4.5 +2.8 2.0B BPRMF 3.2 4.1 -0.9 1.6B TDOC 1.9 0 +1.9 16.9B NET 1.6 4.6 -3.0 12.4B EXPI 0.5 0 +0.5 2.9B AYX 0.1 0.1 0 7.1B CASH 31.1 25.6
New positions since last portfolio update: EXPI, TDOC
Exited positions since last update: None
Trades between 8/29-9/30 Bought: TCNNF 9/21, 9/24 17.84; 17.14 EXPI 9/25 38; 38.38 TDOC 9/24 204.8 Sold: ZM 8/31 303.95; 309; 311; 318.01 ZM 9/30 460.50 CRWD 9/30 135.49 NET 9/30 40.69
Clarification on portfolio. I removed 6.5% cash from my portfolio this month to pay off my home mortgage. The company and cash percentages reflect the new portfolio amounts with the 6.5% cash removed. My advice has always been to have a mortgage with low interest rate and use available cash for investments which should return a high interest rate. Due to the large increase in my stock holdings, I decided that for my situation in life I would be better served to pay off mortgage.
Thoughts on trades and companies for the month.
ZM…boy o boy look at those sells right before earnings report…dumb…dumb…dumb. Funny thing is I was literally thinking about adding 10% of my portfolio value to ZM a few days prior. Emotion is definitely a hard thing to control in investing sometimes. I had a feeling that ZM would crush earnings. It was my largest stock holding at around 25%. Sometimes its just too easy to trade stocks. All day long as the price was creepying up to earnings report I was selling. Afterward I was like damn, why did I do that. Fortunately for me I still had plenty of stock and my results for this month reflect greatly ZM’s great results. I almost bought all the position I had sold back at ~360 but did not get the chance and obviously went up from there. Sold some earlier today as I am feeling uncertain about market going forward for next few months.
I think the company is on fire. More and more Zoom meetings. Zoom as a platform. Zoom’s future seems very bright. I do not plan on buying more unless the price goes to 360 or below. I might sell if price were to go above 550 before next earnings. Most likely just holding.
CRWD Had another blow out earnings report. They do seemly get overshadowed by ZM. Seems to have great product that people want/need. Been a stalwart of my portfolio. Sold a few shares to raise cash level. I do not plan on buying more unless the price were to drop significantly. Most likely just holding.
DDOG I think the market overreacted to its last earnings report, I had bought more. Today it was up 12% on news of MSFT partnership. I never thought DDOG would be my largest stock in portfolio but there it is on top. Partially because I have sold a few shares of CRWD and ZM today and then DDOG went up today as well. The top three holdings are great companies built for the work environment that has been accelerated by Covid times. Most likely just holding.
TCNNF Is a Florida based cannibas stock. I know one of the members of the family that started the company. It is growing rapidly. It makes $2300 a sqft, put it on par with Tiffany & Co. stores. Building a brand for staying power. Quickly becoming in my opinion the stock with the most future upside in my portfolio. Plan on continuing to add to my position.
BPRMF is an interesting company. I think their product is geared toward the future. Here in Florida on the ballot is a proposal to raise minimium wage to $15 hour. Technology like BPRMF will become more in demand as proposals like these put pressure on companies to find ways to reduce some labor, so they can afford to pay more to critical employees. Plan on holding till next earnings report.
TDOC bought back in as I previously was an owner of LVGO. The more I read of everyones opinion the more I realized that this merger maybe better than I originally believed. I think the teledoc business model has a long runway. I personally have just begun using it and I found myself recommending it to others. Word of mouth reference is huge for a company. That is how NFLX and APPL products were introduce to me and I ended up introducing them to many others since that time. I see TDOC going the same way. I do not plan to add or sell in near future.
NET I just reduced to raise cash. I really have not followed NET very closely. Usually I establish a position and then learn more and more about it. Sometimes a company just does not get me excited enough to research greatly. I usually move on because let’s face it this is a hobby for me and if I do not enjoy it why pursue it. I can see selling all of it or potentially buying back more if I read something more about it that catches my interest.
I just posted in depth on EXPI. I have very small holding. I will continue to research it. Was thankful for the feedback it got but was hoping for a little more discussion. I guess I will have to do more research/homework on my own. Could see selling, adding or just staying put.
As always any suggestions or questions on portfolio structure feel free to email me. Any questions on why I like or dislike certain companies post it to the board with exception of TCNNF (just email me on that one).