Cash is King

Cash is King, that is the saying. I usually like to be 100% invested into my companies, but this market, well..feels a bit different. I have not deployed that 10% shave in Cloudflare, I am going to wait and see how the end of 2020 goes. I mean, it is 2020....who knows what will happen next.


I think a fair assessment of the current market is GARP, Growth at a Reasonable Price. But how do we define that? Well, for me it is the names that I own. There are many more out there. I am eyeing $DOCU as another GARP investment for the long-term in the Growth Portfolio, but I am also semi-worried on the sentiment surrounding these powerful growth stocks. It seems like everyone is in them, who is left to buy? Which is why I am looking at areas of the market no one I read about is.


No, 2021, I do not think we will see these same sort of returns, I think you need to be very strategic on where you place your hard earned dollars. It is not by any means easy to make money in the stock market, but with the influx of Central Bank policy and stimulus talks, vaccine, new administration, things are looking a lot better and a lot more stable. But I also think, with the influx of new traders and investors, and I will repeat this in almost every post, that a lot of people are going to get caught with their pants down. I talk to a lot of people, and some cannot even tell me the valuation of the companies they own or explain to my why they own it other than "because it is going up".


I also want to clear something up, my returns are calculated by Fidelity using TWR (Time-Weighted Return). Just because I own a name, does not mean I owned it all year, I trade around my core positions to produce a higher return that has been my strategy and has been laid out pretty clearly in posts. I have owned MANY other names over the course of the return data provided, including $LVGO $AAPL $LRCX $NVDA $BABA $DKNG $VEEV $HD $AMD $SQ and many other names. These names have all contributed to the compounded returns and YTD returns.


There is an obvious rotation happening in the market, like we talked about a few posts ago. It is continuing, whether it is 1 month, 2 months, 3 months, I do not know. I do know I will buy my companies on a dip providing they even do that. I do not want to own (personally) Airliners, or Cruise liners, some industrials. I do not see the value in them, but, they certainly will make for a good trade!


Have not read anything too important from WSJ, Barrons, or Bloomberg and CNBC. I chose the name Fiducia Investing, because I want people to become confident in their investments and trust the process, Fiducia in Italian means confidence, I want you all to be confident in yourself, me, and the equity picks over the course of 5, 10 years. We are building a legacy. Who knows, the cash I raised may even go into $RBLX!


A new name on the radar from various Twitter threads and a colleague of mine is Roblox, when they IPO. Will be sifting through the S-1 over the next few days. https://www.sec.gov/Archives/edgar/data/1315098/000119312520298230/d87104ds1.htm


Zebra hitting highs, BlackLine near highs, Lemonade breaking out (not close to highs), and Cloudflare chugging along we are looking good into the new year! The Growth Fund is at screaming all time highs this week, with some cash too!


Have a great week trading/investing everyone! There are always opportunities!


Portfolio returns pinned in tweet!







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