Two posts in 2 days? It's your lucky day because my brain is on thought mode and there is no stopping it when I start reading my morning articles. Let's take a step back and start from step 1. Building wealth takes time, and patience. It does not happen overnight and these quick momentum gains we are seeing in the market are astronomical, there are a lot of people that are up over 100, 200, 300% this year. Want to know what else is up? The Federal Reserves balance sheet and asset buying program, coupled with the pulled forward demand in Work From Home technology, we have had a blessed year with strong gains and momentum. With rates staying low for at minimum until 2023, I would say that we see further upsides in the indexes, especially tech (and economic recovery stocks), but the portfolio positioning is everything. This is why I own what I own, based on valuation and end markets. If I cannot explain to a 5 year old why I own what I own, I have failed. Here we go:
Cloudflare: I own Cloudflare because the internet is important, building a better, safer, and secure internet for businesses and users is critical.
Blackline: Financial closings can be difficult & complex, and very manual. Why not automate the process?
Lemonade: Insurance companies are dinosaurs, calling them, talking, why not spend 30 seconds on an app getting a policy at a great rate? Insurtech, I would like a piece of that
Zebra: Warehouse automation, tracking & labeling, and efficiency in numerous end markets. Warehouse automation is growing rapidly. I want to own a piece of that.
Anaplan: Connected Planning in a centralized source for planning and decision-making. Efficiency!
I want to refer to an interview with Jeff Bezos one time where he mentioned he watched Amazon stock go down 90% during the tech bubble, but looked at his internal fundamental metrics and the company was firing on all cylinders. I want to remind you, that any one of our stocks can drop 30, 40, 50% while the business is on fire internally. We must stick to the long-term plan, put our heads down, and focus on building out our research to make sure the investment thesis still stands. I am seeing far too many "investors" with 1-2 year time horizons. That is not long-term investing, Yes, there will be periods of time where i vastly underperform the indexes, but that does not bother me (who am I kidding yeah it bothers the hell out of me), but at the end of the day we have to look into the future, build out our assumptions and continue our research and add capital to our highest conviction names. The companies I own and read about, are ones that I believe to be the leaders and dominators in the future.
There are over 50 reading subscribers on this website, I did not think it would grow that fast that quick, I would love for you all to message me on topics you would like to hear about. I cant always write JUST about my stock names. I love reading macro articles, sentiment, etc. If there are any topics anyone would like me to research and give my $.02 on, that would help build the community.
Also, listed below are my current returns ending November 2020. Very, very proud. Time Weighted Returns calculated by Fidelity in my one portfolio I call the Growth Fund. We are now well into the triple digits, while the asset value does not matter to me too much, I am proud of the returns that have been achieved with strategy & discipline.
Articles to read: