If you subscribe to Stock Advisor or Rule Breaker you get a wonderful Scoreboard tool. Every month I plug 100,000 and plug in Saul’s percentages of the stocks he bought for that month. Then compare it with my results. It seemed like everyday Saul’s portfolio came up like roses despite what the Nasdaq and Dow did. Having smaller companies like Ayx and Twilio as your top holdings really move the needle in a bull market.
My anchors were Amazon, Nvidia, Shopify and Arista. But this prior earnings season I took the leap and first sold Arista and bought more Alteryx before earnings. Than I sold Shopify and bought more Twilio and the Trade Desk before earnings. Those experiences were so positive that I decided Thursday to sell Amazon and Nvidia and buy Pure Storage, Veeva, Splunk and Autodesk before earnings. If you are familiar with who well these stocks moved after earnings you know how these moves has changed the value of my portfolio.
I now view the Fang stocks as positions I will hold after I trim from the ones above until next earnings season. Wished I made these moves much sooner though!! Their are weeks when there is a rotation out of the subscription stocks that can be painful but they back very violently and make new highs because money managers love these things!! Thanks Saul for all you do!!
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I’m happy that worked out for you. I’d just be a little cautious about trying to win at earnings roulette.
Dang it’s fun when you win, but even great companies who put up stellar earnings, might blow up in your face. TWLO dropped like 40% in one day after an earnings report. I wish I had bought that day, it was on my short list, but shelved it until recently. Every other stock there PSTG, AYX, etc have had bad days post earnings(that were great). I know because I owned them through it(except ADSK)
Darth
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No doubt, I do not encourage doing this blindly. I liked these stocks and the market conditions. I subscribe to a multitude of stock picking subscriptions and all of these were good recs. But my experiences with Trade desk and Twilio gave me a good cushion for taking the leap.
I think you might be playing a dangerous game and missing the essence of this board.
This board is about identifying the best businesses we can find (mostly under $10B market cap) and investing in them with the intent to hold for years.
Not make transactions from earnings report to earnings report.
Ultimately, investors can make their own decisions, but it’s important to reaffirm the foundation of this method.
Especially when times are good because that’s when it gets tempting to play games (earnings roulette) or take on additional risk which could be devastating.
Best of luck!
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Austin, with all do respect I appreciate your vigilance for protecting the purity of this board but if you thought I was encouraging folks to jump in and out of earnings, that was not my intent.
Obviously, I did a poor job in expressing myself, but my point is that it is difficult to sell stocks that have sentimental value to you because they are very familiar.
But if your going to take that brave step and buy stocks with less of a history but in a new area you want to do it in a good stock environment.
We just so happen to be living in a time where money managers are rewarding high growth subscription model companies that we talk about on this board. I admit that I was a little giddy and wanted to share my success but by no means do I endorse dumping stocks that have been working for you and blindly buy stocks simply because they are going up.
Many of the stocks I mentioned I already had positions in prior to earnings and just added before earnings because market conditions seem to be good for it.
I do like many of the companies that I sold especially Arista but am willing to see some signs of increased revenue guidance than the 25 percent range they were projecting.
As far as Nvidia I think that Crypto has slowed their momentum but if they see better times ahead with new gaming chips and they get their guidance back up I will revisit that also.
But I am definitely willing to suffer the bumps and bruises to get the returns that trounce the markets, which is not for everybody. Case and point, my whole portfolio took a 50 percent dive back in 2015 when it became uncool to be a biotech company and I was overweight biotech. I certainly will curb my desire to talk about my personal success and keep it more focused on the companies fundamentals.
Happy investing!!
Gerald
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