October was a decent month as my portfolio rebounded with the broad market.
During the month, I grabbed shares of $AFRM $MQ $QS and $TOST and in order to raise cash for these, sold out of a few lower conviction or more mature companies in my portfolio....
4) Since my investment, both $AFRM and $MQ have rallied sharply (latter up ~50%!) and even my new position in $QS has appreciated by ~15% in a day, so am pleased with these new buys.
So far, $TOST has not really moved but I believe this is a dominant business and its...
5)...market cap will grow much bigger over time.
Q3 earnings season has started and investors are punishing high growth stocks and because of rich valuations, this is not very surprising.
A couple of days ago, $TWLO declined ~20% post-ER and I took advantage of this dip...
6)...and marginally increased my position.
As the ER season progresses, more of my high growth stocks will probably come under the pump but if their operating results are satisfactory, I'll sit tight or perhaps add to my position(s).
Turning to the macro environment,...
7)...the over-indebted global economy appears to be slowing down and so far, long-term bond yields have failed to rally (which is a bit concerning).
If my assessment is correct, due to extreme debt levels, persistently high inflation or hyperinflation are not likely outcomes...
8)...and once the effects of QE and government stimulus wear off, economic growth and long-term bond yields will surprise to the downside.
In the near-term though, we *could* see a multi-month rally in long-term bond yields and if that might be a headwind for high growth...
9)...stocks which are long-duration assets.
If that happens, I'll just stay invested in my companies and (if needed )will simply hedge my portfolio to mitigate my downside.
I am no macro expert though so my assessment about the economy and bond yields might be totally off..
10)...the mark, which is why nobody should rely on my views.
Turning to my holdings, I believe my portfolio is invested in some of the most promising businesses in the secular growth industries (ecommerce, eVTOL, fintech, payments, software and EVs) and it should produce...
11)...decent growth in the future.
Finally, it is worth mentioning that the Fed is about to taper its QE program and if history is any guide, this tightening will probably trigger a big pullback in stocks towards spring/summer next year.
Hope this has been helpful.
THE END.
Final Comment -
$LILM and $QS are pre-revenue companies, therefore they are higher risk than my other holdings. These are NOT suitable for conservative, risk averse investors.
In any case, please do your own homework before investing in any company - it is YOUR MONEY.
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Two and a half years ago, when I first became active on FinTwit and started sharing my high growth portfolio, many called me 'an idiot' or 'a clown'. These critics were sure my 'overvalued' stocks would crash and burn!
Between April '20 and Jan '21, when I repeatedly posted...
...that I felt that we were witnessing a young bull-market, the same critics chastised me again and called me all sorts of names.
Well, my 'overvalued' stocks have done pretty well + the broad indices have been rallying hard for almost 18 months (with minimal pullbacks)...
...Despite this, these 'value oriented' critics and anonymous keyboard warriors still believe that I am the 'clown or the idiot' and they are in fact right.
My 'overvalued' bubble stocks are still strong and the 18 month old bull-market is still running! And I am the 'clown'!?
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%...
- Durable growth (not cyclical, prone to booms/busts)
- High gross margins (especially for software)
- Outstanding revenue growth (50-100%YOY!)
- Big TAMs/long runways/still early in S-curve adoption
So, here we have disruptive companies which are growing rapidly within enormous
This deceleration shaved off 24% of Fiverr's market cap!
Here is a company which despite very tough comps (after last year's COVID related boost to its business), announced that its revenue will grow ~50% this year and its stock got smoked!
Agreed; its valuation was elevated but this 83% gross margin business is now...
...valued at ~21 X year-end EV/S.
Yesterday, Fiverr announced its active buyers grew by 43%YOY in Q2 '21 to 4 million and spend per buyer increased 23%YOY.
So, apart from a mild slowdown in its business (expected after last year's bump), all other metrics didn't indicate...