Retirementdough February Portfolio

Portfolio Update 2/28/20

It’s been a month since I posted my January 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 2/28/20.  
Change since 1/31/20  +7.3%		YTD     +29.5%. 
S&P 500 -7.9%	Nasdaq -5.0%		Dow -10.0%

Stock		Current	 	      % of Port	      	       % Change 		 Market	
		% of Port		on 1/31	   	       in port since 1/31	 Cap

AYX		  31.0			31.2			  -0.2		         9.6B
CRWD		  16.4			21.7		    	  -5.3			13.2B
ZM		  16.4			14.5		    	  -1.9		        30.0B	
ESTC		  14.4			13.6			  +0.8			 6.0B
MDB		     0			10.3			 -10.3				
ZS		   3.7			 8.7			  -5.0	                 7.6B
DDOG		   3.2			   0			  +3.2			13.5B
TCNNF	           1.7			   0			  +1.7			 1.4B
CASH              13.1	                   0			 +13.1


New positions since last portfolio update: DDOG, TCNNF

Exited positions since last update: MDB

Trades between 2/1-2/28

Bought 	        CRWD			2/3, 2/10			60.83, 61.89
		ZM			2/10				87.05	
		TCNNF		        2/20				10.90
		AYX			2/24, 2/25			129, 134.75
		DDOG			2/25				44.3

Sold		AYX			2/10				139.01	
		ZM			2/10				87.06
		CRWD			2/10				61.9
		MDB			2/18, 2/24			171.98, 158.9, 157
		ZS			2/24				52.53


Thoughts on trades and companies for the month.

On 2/10 I decided to liquidate my taxable non retirement account as I wanted to have the security of my available cash for personal reasons. In doing this I sold CRWD and ZM which I wanted to hold, so I bought them the same day in my retirement accounts. In order to do this I sold some AYX as it was my largest holding and was about to report earnings.

Still number one AYX 31.0%. I had sold some of my position on 2/10 right before earnings as it was over 30% of portfolio and was worried about hogs getting slaughtered. Its earnings report was literally better than anyone expected. Thought I really screwed up as I watched it sky rocket after earnings. Then coronavirus gave me the opportunity two weeks later to buy back the stock at a value less than I had sold it before the awesome earnings announcement! Unbelievable. This is the company that I have had the most confidence in for the past year and continue to see them growing rapidly. Plenty of cash, no debt. Lots of runway.

Number two holding CRWD 16.4%. Still think this company has the most potential for 2020. Looking forward to earnings report. The stock is slightly down on the month. When I was transfering stock holdings from different accounts, just did not get as much bought back. Thinking I might bump up my holding percentage some.

Number three holding ZM 16.4%. A company that benefits from coronavirus. CEO said his phone would not stop ringing people looking to sign up. Should have considerable growth even above their sprinting norm. Valuation is high. Part of me thinks trimming might be wise, another part of me thinking next earnings report could be crazy numbers due to growth from coronavirus demand.

Number four holding ESTC 14.4%. Recently reported earnings. 60% yoy revenue growth. Saas revenue 114% yoy. Calculated billings 54% yoy. Net expansion rate greater than 130%. Subscription customer count up 7.2% from Q1 to Q2. Not a favorite of the board. Made a huge jump after earnings and is up more than 15% on the month, while many stocks are going the other way. Will this be the beginning of a long run? I certainly hope so.

Number five holding ZS 3.7%. Believe the company will bounce back, just not sure of the time frame. The board has influenced me back down on ZS, if the product cannot sell itself, then is it really special? I used the money from selling partical position to buy more AYX.

Number six holding DDOG 3.2%. I mentioned in last months update that I was looking at establishing a position. I sold out of MDB and used some of the money to buy DDOG and AYX. DDOG’s numbers are just impressive. Know nothing about the software or product. Strictly following the numbers.

Number seven holding TCNNF 1.7%. A cannabis stock. I did a write up for the board but one of the moderators took it down. If you are interested in the write up email me and I will send a copy. Has debt but other than that lots of positives such as 150% yoy revenue growth.

I sold out of MDB. The stock has been performing well so far this year and I just think that its yoy growth comparisons maybe tough the next quarter or two. Its just not something I was comfortable holding over the next few months.

Just two short month’s ago I had my annual 2019 review. I had underperformed the Nasdaq by -17.7%. I was unconcerned and expressed that in my thoughts. There was some critical feedback about how I was so nonchalant about underperforming the market. However I knew that some purchases which were made July thru October had underperformed do to timing of those purchases and felt confident that my companies would come back strong.

Here we are two months later and I am crushing the indexes in 2020. Had I listened to the naysayers I should have just quit with my own investing style and put my money into the indexes. However I was seasoned enough as an investor to know that I would do just fine given some more time. I also believe I will greatly outperform the market for the next 10 months as well. Time will tell.

I started sharing my portfolio results as an attempt to give back to the community that has helped me so greatly. I do not claim to be a master investor, but I have been investing for over 15 years. I openly have shared the results of those efforts and they can be found on these boards. My investment results have been increasingly getting better because of many on this board. Some of the posters here are excellent at evaluating companies technologies, some evaluating companies performance meterics, some are great at timing buys, some at timing sells, some at seeing the down falls, some at valuation and others have different opinions that are insightful about things related. Everyone has something of value to share!

If you keep reading not only the tmfboards, but also earnings c.c. transcripts you will learn all about companies and industries. This information will give you the clarity to make investment decisions for yourself and a comfort level which will allow you to be successful. Thanks to everyone one the boards for helping me be successful when the majority of the stock market is temporarly falling apart.

As always any suggestions or questions feel free to email me.