Portfolio Update 11/28/20 7AM
It’s been a month since I posted my October 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 11/28/20. Change since 10/30/20 11.6% YTD 185.8% YTD S&P 500 +12.6% Nasdaq +34.8% Dow 4.7% Stock Current % of Port % Change Market % of Port on 10/30 in port since 10/30 Cap ZM 17.8 11.9 +5.9 126.4B CRWD 15.9 15.4 -0.5 32.7B DDOG 13.4 13.5 -0.1 29.3B TDOC 12.1 12.3 -0.2 27.2B DOCU 9.6 8.3 +1.3 41.7B TCNNF 9.1 11.9 -2.8 4.1B EXPI 7.3 2.7 +4.6 3.6B BPRMF 0 4.4 -4.4 CASH 14.6 19.6 -5.0
New positions since last portfolio update: None
Exited positions since last update: BPRMF
Trades between 11/1-11/28 Bought: 11/02 DOCU 200.67 11/02 EXPI 41.83 11/02 TDOC 189.98 11/04 TDOC 198.60 11/04 EXPI 44.85 11/06 EXPI 47.20 11/09 DOCU 201.36 11/09 EXPI 43.59, 43.78 11/10 ZM 385.09 11/11 DDOG 79.91, 79.85 11/13 ZM 404.10 11/18 ZM 394.95 Sold: 11/04 BPRMF 20.10 11/04 TDOC 198.25 11/09 TCNNF 27.01 11/09 EXPI 43.39 11/18 DOCU 212.7
Results year to date at end of month Jan 20.7% Feb 29.5% Mar 11.6% Apr 32.4% May 77.0% June 104.1% July 116.7% Aug 137.3% Sept 170.7% Oct 166.6% Nov 185.8%
Thoughts on trades and companies for the month.
The S&P, Nasdaq and Dow were all up 10% accumulatively from last month. My portfolio hit all time highs. This month I was actually down to 1% cash in my portfolio at one point earlier in month. This is reflected above by all the buying I was doing this month. I received some inherited money which bumped my cash position back up at end the month. I have some more coming, so I would like to reduce my current cash position in my portfolio.
I added to my DDOG and ZM positions this month. They both had fallen into what I viewed as buy territory. Tom E taught me on the fool boards many years ago, it is good to have a trading position around companies you invest in as you can identify when the market maybe giving you an opportunity. In two weeks ZM and DDOG have giving me a 20% gain. It does not always work out like that but it is nice when it does.
I added a little to TDOC as it has fallen in price the past month. I am excited about TDOC future. I think it has the greatest potential to outperform of any stock I own. A little surprised that with the virus ramping up of late that this stock’s price has not risen to reflect what should be the continued use or even increased use of video conferencing/phone visits. I think telemedicine is in very early stages, I see a large runway (TAM).
I reduced TCNNF slightly as it has risen significantly the past few months and a smaller position will go a long way in the future IMO. It is growing rapidly, it is profitable, has good margins and I know some of the founders of the company. It is a cannabis stock and next week the US house of representatives will vote on the More’s Act. The MORE Act removes cannabis from the Controlled Substances Act — thus providing individual states with the authority to be the primary arbiters of cannabis policy and eliminating the existing conflict between state-level marijuana legalization policies and federal law. Many say it will die in the Senate. However I believe we are witnessing the beginning of decriminalization of cannabis in the US. Not sure of timeline, but I know when it occurs, MSO’s will take off in value especially when they are listed on the major exchanges.
DOCU I bought and sold a small trading position this month, not a major movement. I like the company I think it has a first mover advantage. It has become a verb in the business world. My banker tells me he will send over some paper work to “docusign” it.
I sold out of BPRMF. Why? There was a great post on stocks and conviction earlier this month. I really had to reflect what I thought Blue Prism was or was not. I think it is a good stock, I believe you can make money in the stock over the next year. However I do not believe that it was the best place for my money. I want to be a ruthless allocator of my capital. It was the least conviction in my portfolio. I do not see it taking over like DOCU, ZM, TDOC, etc. I sold it for slightly above were the current price is currently, I used the money to buy EXPI which is up 20% since that time. Already seems like a good move. However BPRMF reports soon and I could see a jump after earnings.
I ramped up my EXPI before earnings announcement. They had very good earnings but the stock really did not react. However it has been on the move the last two weeks, this has been another ~20% mover in a few weeks. I believe this company is in the processes of disrupting the real estate brokerage business. It will become the first truly worldwide brokerage in my opinion. The margins are no where near SAS companies and they do not have a re-occurring revenue stream. Interest rates are predicted to be low for next few years, housing is in short supply currently and housing demand is predicted to continue to be strong. This should continue to support EXPI’s growth.
Next week is ZM and CRWD earning announcements. I really think ZM is going to crush it again. I had reported in previously monthly report how I had sold a bunch of ZM the day before last earnings report, I will not make that mistake again. Plan on holding all shares thru earnings. Really stinks that CRWD reports after ZM, seems to ZM takes its thunder.
My portfolio is at seven positions currently. Historically my portfolio is between 5-8 positions. Below is number of positions held at end of each month.
Jan -6, Feb -7, Mar -5, Apr -5, May -6, June -5, July -6, Aug -6 (with very, very small position in AYX for 7), Sept -8 (with very, very small position in AYX for 9), Oct-8, Nov-7
New positions 2020
May-ZM (Previously owned)
Aug-TCNNF (2nd time), ETSY, NET
Sept-EXPI, TDOC (previously owned LVGO)
Oct-DOCU (Previously owned)
Sold positions 2020
Mar-TCNNF, ZS, ZM
Aug-ETSY, AYX (except very small position)
Monthly reviews 2020
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).