Portfolio Update 7/29/20 5AM
It’s been right at a month since I posted my June portfolio update found here;
https://discussion.fool.com/retirementdough-june-portfolio-updat…
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 7/29/20.
Change since 6/28/20 +6.2% YTD +116.7%.
YTD S&P 500 -0.4% Nasdaq +15.9% Dow -7.5%
Stock Current % of Port % Change Market
% of Port on 7/29 in port since 6/28 Cap
AYX 5.9 10.4 -4.5 10.9B
CRWD 16.3 16.1 +0.2 23.2B
LVGO 12.9 9.2 +3.7 11.1B
DDOG 11.3 11.5 -0.2 26.6B
ZM 21.8 19.4 +2.4 72.3B
BPRMF 3.1 0 +3.1 1.4B
CASH 28.7 33.4 +28.3
New positions since last portfolio update: BPRMF
Exited positions since last update: None
Trades between 6/28-7/29
Bought: ZM 7/24 243.78
BPRMF 7/14 14.52; 14.69
Sold: AYX 7/7 169.65
Thoughts on trades and companies for the month.
My cash position slightly reduced as I bought some Blue Prism and some more ZM, but also because of general appreciation of my other stocks this month. My cash position is as large as my entire portfolio value just two years ago. It is quite a bit of cash on sidelines. However I do not see many opportunities with current valuations. I will wait and be patient.
I sold some more AYX this month. I slowly have been unravelling my position in AYX. Three months ago it was 37.2% of my portfolio. After the company guided down I started reducing. I plan on holding current percentage until next earnings report. More than likely will continue to hold indefinitely as long as there is not some type of major surprise to the downside on revenue projections yet again this quarter.
I bought more ZM this month. Yes, its pricey, however it’s growing twice as fast as everything with exception of LVGO. I fully expect it will rise again after next earnings report. I see nothing right now that will slow it down. In fact I think the opportunity to recognize new revenue streams will be strong, such as advertisements. Why they have not started advertising on free verison I have no idea.
I bought Blue Prism after Ethan’s write up on the board found here:
https://discussion.fool.com/blue-prism-a-new-position-34561074.a…
I believe a reaccelerating of growth was masked by the Covid temporary effect on the company. I believe this reaccelerating is due to the purchase of Thoughtonomy and how the company has invested in S&M over the past two years. If this sounds foreign to you read Ethan’s post and subsequent thread on the company found in link.
Blue Prism is a much smaller company than the others that I am invested in currently. It is traded OTC which means liquid is limited and can lead to greater voliatilty in price. It is currently a small position in my portfolio and I plan to keep it that size for foreseeable future.
Number 1 holding ZM 21.8% 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. As Covid continues, so will ZM meetings.
Number 2 holding CRWD 16.3%. Killed its last earnings report again. 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.
Now Number 3 holding LVGO 9.2 Due to price appreciation of stock, it has moved up from number 5 holding to number 3. Company helps monitor and give advice to patients with chronic diseases such as diabetes. It lowers prices for insurance company, so they pay the cost for the patient. Patients are healthier and save money and insurance companies save money. Add the factor of potentially keeping patients out fo the hospital an added benefit.
Now Number 4 holding DDOG 11.3% Another company on fire. Seems Covid is just accelerating 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.
Now Number 5 holding AYX 5.9%. Rock solid financials. No real competition. Covid slowed them down. 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.
New Positon BPRMF 3.1%. Hired a bunch of people the last two years. Hidden reaccelerating of revenues due to Covid. Technology that saves its customers money immediately, should be in demand even if economy downturns.
Real appreciate Saul and everyone on the boards help over the years to become a better investor. This past six months has been a game changer to my retirement outlook. I am 45 years old and could retire right now if I so choose. Its an incredibly feeling and without a doubt would not have been possible if I had not been actively following this board over the past few years.
The amazing part is I literally “preach” about this board to my family and friends. They are all amazed at the types of results I have in my portfolio. Crazy part is even though I tell them to read these boards to get ideas and become a better investor (because they ask me how to become better investors) literally none of them do it. Nope not a one.
Instead they ask that I manage their money for them, which I always refuse to do. I can not imagine a quicker way to ruin your relationship with someone than manage an investment portfolio for them. To active members of this board what many here have accomplished seems mythical or magical to the outsiders that have not paid attention. I thank you all for helping me be a better investor!
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.