I did some analysis over the weekend that helped me personally with my investing decisions. I started high growth investing in early August with a portion of my IRA. Since then I’ve had a small allocation in REITs, plus big-cap growth names (AAPL, AMZN, NVDA, NFLX, etc.), and high growth names (the stuff discussed here). I had started feeling like both sets of growth names went through similar declines, which surprised me. So I did some digging. I took a look at my 5 growth names, 10 high growth names, and 2 REITs. I took at look at their 52-week high, the lowest value over the last 3 months, and the close of business Friday. Compare the 3-month-low to the 52-week-high I saw how far they fell. Then looking at the 3-month-low to the Friday value I saw how much they have rebounded. The sample size is not huge, but its what I’ve been holding. So I could be drawing conclusions from not enough data. But…
What I found was my growth names fell just a tad bit farther, on average, than my high growth names. The growth names have come back about 5%, but the high growth names about 26%. Even my two REITs rebounded 12%.
This made me question if my thesis that the growth names are going to give me market-beating returns at less volatility.
Added to my high growth holdings today of TTD, AYX and OKTA. Considering more ZS. No new names bought, just using some reserve cash to add to positions that are taking a hard hit today. My high growth allocation is now higher than it has ever been in this account and I’m feeling good with that decision.