Thread by @RamBhupatiraju

Got interested in some Pinterest today $PINS (add), along with $PYPL (new)

Almost pulled the trigger on $DDOG (new), $RDFN (new) $SE (add) but reminded myself not to be hero all in one day.

The ones I'm 👀 closely

Portfolio (positions to add to) : $DOCU $ETSY $MELI $TDOC $GDRX $TTD $BABA $CRWD $FVRR $MTCH $NET $PTON $ROKU $SHOP $SQ $TWLO $U $ZM

Watchlist : $ADYEY $CHWY $CRNC $BL $COUP $HUBS $FTCH $PDD $PLTR $SNOW

$PINS : You know the drill. That rare positive Social network, with 450M users with shopping/ideas intent, the ideal demographic for advertisers. International APRU has a long way to go. Lot of useful features being introduced both for Users and Advertisers.

Re-opening should be good for them on User side (with ppl planning for all those parties, weddings and events...) and Brands/Advertisers opening their wallets further.

Prev buys : $20 and $11 (from March-2020)

$PYPL : 350M users with engagement increasing, E-Commerce tailwind, Super-App optionality, highly profitable...

I don't think Mgmt hesitates to do some aggressive buybacks.. Anyway I like to mix my buys between profitable & un-profitable Co's (while still sticking to quality).

Market participants were getting too far down the rabbit hole

Quality/Predictability of Cash Flows
⬇️
Reported Earnings
⬇️
Recurring Revenues but currently unprofitable
⬇️
Promise of Rev growth (incl SPACmania, leaving aside few good ones)
⬇️
No Revenues, but hey great story!

So it's good for a Market reset, things to cool down, and remind ppl that Market is not a one-way/quick lottery ticket.

Based on the experience from GFC, Fall 2011, Jan/Feb 2016, 4Q-2018, Mar-2020, personally I'm OK with days like these (and look forward to once in a while).

Of course, your Portfolio is tanking, but you're also starting to get some great opportunities....

✔️If you have some cash (w/o having to sell any existing good positions)

✔️Have a solid list of Co's you already researched and want to buy (both from existing holdings and new ones from Watchlist)

That awkward dance you have to do on days like these between

✔️Defense (not sell good Co's, controlling your emotions, buying but slowly)

and

✔️Offense (taking advantage of lower prices in great Co's, looking past whatever the latest gloom/doom is)

...while not knowing what tomorrow, or the next few wks/months will bring is the real challenge and also the fun of being a long-term investor.

(None of this is advice to anyone)

Good Luck out there!

/END