I have appreciated the portfolio sharing here with the accompanying thorough explanations. Time constraints make it necessary that i limit my comments herein, though i have discussed each of my top holdings here and elsewhere on TMF as the particular stock discussions have come up. I have also briefly described my investment philosophy.
For those interested and FWIW, i’ll continue to share in the future as issues come up.
In the meantime, below is a list of my holdings which may qualify as Saul type stocks or those that i think will soon advance to hyper growth status. These stocks make up 45.6% of my invested portfolio. Of the remaining amounts, 62% is in BRKA and MSFT (that’s 62% of my 54.4% invested in non Saul stocks). BRKA holding dates back to 1991 and was unwisely trimmed by 2/3 in 2000. MSFT has been a holding since 2009 with no changes.
Outstanding executives with superior vision who also have a demonstrated commitment to their fiduciary responsibility to all shareholders is essential for my stakes. The latter is a little tougher to find in younger hyper growth companies but i hold true to that standard as much as is practicable.
I try to avoid companies with excessive executive compensation whether in salaries or in SBC. IMO, execs should get rich by risking their own capital like every other shareholder and then do a good job to cause the stock to rise, not by being over compensated for being managers to the disadvantage of shareholders. Setting a good example, Buffett has never taken a single stock option and has never had a salary greater than $100K. We don’t expect that kind of magnanimity from others but we do favor companies who put the interests of average shareholders front and center.
i recognize that this latter point, which is very important to me, differs from Saul’s view on this matter. My respect and gratitude for Saul’s work here is substantial and unqualified and i agree with 85-95% of his opinions. On this matter of SBC, i view it differently.
Here it goes:
AYX—18.7%
RNG—17.7%
ROKU–11.4%
WIX—7.9%
APPN–7.5%
ZS----6.5%
TTD—6.2%
PEGA–4.4%
MDB—3.8%
TEAM–3.4%
ESTC–3.3%
The remaining amounts are in starter positions in SWAY, RUBI, APPS, and CLDR (strictly buyout speculation which i have never done but this one seems too obvious) where i still need to get to know the leadership better.
There are stories behind each of these buys. RNG has been a top 3 holding since 2014 shortly after Dan Niles brought it to my attention on CNBC. It has been a 10 bagger for me but i have sold 2/3 of my position along the way as its portfolio dominance became too uncomfortable. I was adding ROKU from 11/17 added through 12/18, then sold half a few days ago, trying to build cash for other buys. I consider APPN a near perfect company and am looking for opportunities to add. The other stocks on the list were only discovered early this year after discovering Bert and later this fabulous discussion board. RUBI is my own discovery while researching TLRA.
i’ve realized substantial gains in all stocks on the list except for PEGA, about which i remain optimistic, and MDB about which plenty has been said here.
I am not tech savvy.
I’ll add that i have lost significant chunks in this sector on PVTL, ZUO, and CLDR. Never got into NTNX because i am not comfortable with the CEO’s executive leadership. CLDR was simply a whole sale blunder. Can hardly believe i went for it. Thought the CEO was very poor before and after the merger but rationalized that he wasn’t really running the company with the two founders in subordinate executive roles. The stock price had come down to $10, our favorite tech gurus liked the technology, and i bit. Big mistake.
Since 1999, i have realized 20%+ compounded annual returns overall, while still making many mistakes along the way. I did particularly well relative to the market 2000-2002 because i saw the Internet bubble with clarity and believed correctly it would burst soon after Y2K. Other than that, i have not been better than anyone else on macro calls. I wasn’t so clever 10/2007-3/2009 but recovered from losing half my wealth during that stretch more quickly than i expected.
GLTA