Zee's Portfolio as of Today

My portfolio as of today - 2/1/2022:

My allocation to SaaS companies are as follows:

  1. ZoomInfo - ZI: 14.78%
  2. Zscaler - ZS: 14.72%
  3. DataDog - DDOG: 14.63%
  4. SentinelOne - S: 14.64%
  5. Cloudflare - NET: 14.40%
  6. UpStart - UPST: 12.28%
  7. Snowflake - SNOW: 7.59%
  8. Monday - MNDY: 6.96%

In light of indicators I follow I opted to close out my positions mid-November and wait for better entry prices. The result was an average entry for each of these as follows:

  1. ZoomInfo - ZI: $55.53
  2. Zscaler - ZS: $267.58
  3. DataDog - DDOG: $148.22
  4. SentinelOne - S: $44.69
  5. Cloudflare - NET: $106.62
  6. UpStart - UPST: $110.22
  7. Snowflake - SNOW: $303.36
  8. Monday - MNDY: $240.83

As of this moment, I’m sitting on a loss in the portfolio of -1.04%. This does not include the return of cash from mid-November to the entry of these positions. My method has been to gradually layer into these positions as the prices were discounted.

I see no need to rehearse the why for buying these great companies beyond the obvious - most are relatively recent additions to the markets and though I’m not getting in at the initial IPO, I’m convinced each of these companies have a long future in front of them. Sure they at times get stretched to the point of a short-term break with their earnings potential, but it seems certain that they’ll return to their trajectory upwards. In my view, though, the price paid is important which is something I gleaned from Warren Buffet’s many annual reports over the years.

  • ZoomInfo’s IPO was June 4th, 2020
  • Zscaler’s IPO was March 16th, 2018
  • DataDog’s IPO was September 19th, 2019
  • SentinelOne’s IPO was June 30th, 2021
  • Cloudflare’s IPO was September 13th, 2019
  • UpStart’s IPO was December 16th, 2020
  • Snowflake’s IPO was September 16th, 2020
  • Monday’s IPO was June 10th, 2021

The market goes through cycles and they are an inevitable part of investing. My implementation of my own strategy was not perfect by any means. There were prices a whole lot lower than what I entered at. UPST ended up dropping -76.34% from 10/15/2021 to its low on 1/24/2022. But it is already up 26.41% from that low! Cloudfare dropped -62.02% from its high on 11/18/2021 to its low on 1/28/2022. It is now up 9.88%. Monday dropped -58.12% from its high of 11/9/2021, but is now up 12.18%.

The point is that great stocks that are discounted dramatically tend to rise dramatically once the mayhem passes. The probabilities are high that the mayhem has now passed, at least for a time.