Thread by @saxena_puru

1) Portfolio update Aug-end -

$ADYEY $AGC $CRWD $DLO $DOCU $GLBE $LSPD $MELI $MTTR $OKTA $PATH $PLTR $QELL $SE $SHOP $SNOW $TWLO $U $UPST $ZI #NQ_F

Return since 1 Sept '16 -

Portfolio +830.25% (56.21%pa)
$ACWI +77.51% (12.16%pa)
$SPX +108.30% (15.81%pa)

Contd...

2) YTD return -

Portfolio +46.92%
$ACWI +14.97%
$SPX +20.41%

Biggest positions -

1) $DLO 2) $SE 3) $MELI 4) $GLBE 5) $PLTR

Contd....

Commentary -

August was a decent month and today marks the 5th anniversary of my post-retirement high-growth portfolio.

My portfolio's YTD return is +46.92% and over the past 5 years, the return is +830.25% (nine-bagger on the entire portfolio) representing a CAGR of 56.21%...

The returns have surpassed my expectations and I am quite pleased with the progress thus far. At the same time, am also aware that my future returns will probably be way lower.

Logic dictates that one simply can't keep compounding at this surreal rate for a long period of time.

During the past month, I made a few changes and got rid of lower conviction companies $FVRR $ROKU $SNAP and one of of businesses (Afterpay) was acquired by Square.

$FVRR and $ROKU Q2 operating results were disappointing IMHO and the changing competitive landscape prompted...

...me to close out my positions.

$FVRR will soon be competing with LinkedIn and $ROKU faces intense competition overseas (ex-US) and this is a fight I don't want to be involved in.

Turning to $SNAP, Pinterest's sudden decline in its user-base made me realise that social...

...media is a fickle business and not every company is the next Facebook, therefore I sold my shares and booked my gains.

In terms of new investments, I opened positions in $U and $UPST as these appear to be promising long-term compounders....

Going forward, I intend to run a 'tighter ship' and my stock selection process will be even more stringent.

This should translate into longer holding periods, (hopefully) fewer mistakes and pretty low portfolio turnover.

After all, world-class compounders are a rare breed..

...and in this business one doesn't have to own all the big winners. What matters is what is included in the portfolio and in this regard, its best to own the best 15-20 disruptive businesses and sit tight (until the story deteriorates).

This method has worked for decades...

...and in investing, its pretty difficult to re-invent the wheel. Over the long run, a shareholder's returns will pretty much mirror the performance of the underlying business (subject to valuation changes - lower the price of admission, the better). So, there isn't much...

...point in jumping from A to B to C...even more so when one's portfolio companies are firing on all cylinders.

Turning to the market environment, the Fed is dovish right now and it hasn't set a firm date for reducing its asset purchases. If history is any guide...

...risk assets should remain buoyant until the end of QE but it is also conceivable that the market may discount this process and sell-off sooner.

In any event, IMHO a big pullback is likely over the following 12-15 months and next spring/summer could be pretty interesting!..

For my part, am just staying invested in these secular compounders and when the time comes to defend capital, will hedge my portfolio.

Thats about it, this covers my thoughts on this subject.

Hope this has been helpful.

-- END --