March 2021 Portfolio update
Portfolio Performance YTD: -3.2%
Pintrest (pins) 18.37% Roku (roku) 17.96% Crowdstrike (crwd) 10.78% DataDog (ddog) 10.34% Peleton (pton) 9.19% Transmedics (tmdx) 8.17% Teladoc (tdoc) 6.24% Zoom (zm) 5.69% Stone (stne) 4.34% Snowflake (snow) 1.58% Stem Energy (stpk) 0.94% -- try out position Atomera (atom) 0.29% -- try out position CASH 6.19%
What last couple of weeks this has been. My portfolio hit all time high Friday, Feb/13th and I was up over 20% YTD. Since then, it has not only given all the gains back but was down -8% on Monday.
Sold - AYX, GOOG and TTD
This month I ended up selling Alteryx. Its not that I do not think Alteryx is not cheap. However, this drawdown in high growth names gave me the opportunity to add to my existing companies who I believe in more than Alteryx. At the same time, I will be able to harvest some of the losses from Alteryx in lieu of the gains I have already booked by selling Amazon and this month Google and TTD.
Bought more - PINS, DDOG, TDOC and PTON and small amounts of SNOW and ATOM
I have been buying small amount of Pinterest ever since their results and as the price fell I bought some more. While Pinterest gained users during pandemic and with economy opening slowly there is concern regarding how many of them will remain actively engaged. I don’t know how that will impact and especially stiff YoY comparison vs 3rd and 4th quarter of 2020. I do know economy opening can open flood gates for advertisements that had slowed down due to pandemic. Pinterest is focusing its efforts on raising its ARPU for international users and increasing demand for advertising can be provide the much needed boost for them. At the same time, they are adding content for travel, recipes etc. and becoming a broader platform. I see it as overall positive even if monthly active users don’t go up much.
This has been actively discussed stock on this board. I have nothing more to add. I added to my existing holding after they announced their results which I considered very good overall. However they continued to fall further so I continued to buy more. I think the trend toward digital transformation is a secular trend and the management has echoed the sentiment in each earning call by saying they are in very early innings
Another large secular trend with huge TAM. The reason they are not larger part of my portfolio is because they have many moving parts, health care is very regulated and slow moving, I do not understand it all but I want to be part of this trend. What we know is they are more convenient and cheaper than physical Dr. visits. They can scale business internationally. Given some part of their business can be commoditized over time but with Livongo (proactive care) they will be able to provide value from the data they collect. Health care is not necessarily zero sum game. Most people will seek out and pay for superior service which Teledoc can provide with all the data they are collecting. So while pandemic benefited them virtual health care is here to stay and teledoc should be able to grow at a healthy rate.
They are growing nicely, cant keep up with the demand, opening international markets, building new equipments and are cheap!. They were at 136 when they were inducted in S&P and went on to make a new high of 172. They have been selling at 100+. I think they will be worth way more by the end of the year.
Love the business. We are moving away from teradata, data lakes, multiple repositories all into SNOWFLAKE. Getting around to the buy price for the stock was a problem. After the recent dip, bought a 1% position. Would like to get more but may be everyone shares the sentiment and is also waiting for it to fall some more:) May be it will never fall enough, so I wanted to at least get some.
I can’t add much to CRWD and ZM that has not already been discussed here. I would have to refer you to Analokid’s writeup on TMDX. He does an excellent job covering it. It was deemed not suitable for this board as it is yet to grow revenue like other fast growers. I do expect it to deliver strong growth over the next three years as they get FDA approval for Heart and Liver and eventually become standard of care for organ transplant.
I am finally down to 9 primary positions in my portfolio. I like all of them. The remaining 3 positions are small (<3% of portfolio). I cant say which one or two will win big this year. I am invested for the long term. I will adjust my position size as my confidence in them changes over time.
I would like to thank Saul once again for providing the platform, sharing his knowledge and being so generous with his time. It takes a lot of time to write these summaries and mine is not even that good. After I go over the quarterly earnings, I generally form an opinion about them. However, I am not in a habit of writing them down. Going forward, I intend to do just that so I can present my thoughts more cogently. Bear with me as I am learning this process.
Thank you all for sharing so generously.