I know that some people find it reassuring to have an idea what I am doing at crisis times, so here’s an idea of what I’ve been up to.
I thought Crowdstrike’s results were extraordinary. I’m still reading the conference call but I’ll try to write up my take on the results when I have a chance (perhaps on the weekend). So I wanted to buy more. Where to get the cash? I sold back that tiny position in Amcor and sold at least half of my little position in Red Violet to buy more Crowd. Earlier in the week I trimmed tiny amounts of Red Violet, Okta, and Coupa, to buy more Zoom (although it was already my largest position and oversized).
By the way, in the Crowdstrike conference call the CEO said:
“Our President of Global Sales and Field Operations and I are kicking off a new 100 by 100 international tour where we will meet with 100 of our customers and prospects in 100 days, all remotely via Zoom”
and
“…we’ve been big fans and users of Zoom and we’ve been able to move our sales operation to fully remote. We’ve been able to actually increase our first business meetings by 13% just by doing this as people are around in home and we’re able to get in front of them.”
It’s nice when the CEO of one of my companies brags about another of my companies, especially when I am down to just six real positions which cuts the odds of that happening enormously. As you may have guessed, I’m really positive about Zoom and Crowdstrike. In fact I’m really positive about Datadog, Alteryx, Coupa and Okta too, but the first two are my current favorites.
My positions are:
Zoom at 24.9%
Alteryx at 19.9%
DataDog and Crowdstrike are both at 17.6%
Okta in 5th place at 12.6%
Coupa in 6th at 9.3%
My portfolio is up 4.2% year-to-date, in spite of this horrible bear market.
What a rotten banana of a post, dumaflotchie. In these times, every ounce of humility and care goes a long way. I think what you meant to ask was:
“Hey Saul, would you mind explaining your thinking behind selling your little Red Violet position? We all are grateful for your experience and how you teach us to think about investing decisions.”
duma, it was clear from Saul’s post: he needed to raise cash to put into stocks that are much higher conviction for him. Not sure why you feel the need to be antagonistic towards Saul. A bit more respect for him, and for those of us who appreciate him sharing with us, would go a long way.
Yes, I agree with the sentiment. Instead of focusing on the capitulation, focus on how amazing it is that Saul is up in this bear market. I don’t for the life of me know how he does it.
Saul, I notice you no longer have TTD. Are you avoiding companies dependent on revenue? Some of these have been beaten down in price. Roku is another one. Aside from Crowdstrike, many of the SaaS stocks have held up well during this decline.
Saul, I notice you no longer have TTD. Are you avoiding companies dependent on [advertising] revenue?
Hi 12x, In my end of February report I had a long piece on The Trade Desk, and I explained clearly why I was gradually getting out of it (in addition to my general distrust of advertising). I suggest you look back at it, and then if you still have questions, I’d be glad to try to answer them.
Best wishes,
Saul