Conor's avatar
$2.5m follower assets
Added $AXON to my Taxable Account
I bought 11 shares of $AXON at average price $98.13 per share. I also bought 1 share of $VOO for $369.

The only reason I know about Axon is
from the Motley Fool. David Gardner, Brian Feroldi, and Brain Stoffel have been
huge advocates on all of their podcasts/YouTube videos for Axon. Check out "The
Brians" work on Axon for more information. My only concern is a lack of TAM.
Axon is already working on this issue with expanding outside of their core
business and trying to expand internationally.

I love buying $VOO or S&P500 equivalent when I buy an individual stock. First, it helps me track the performance of that stock compared to the market at the time of

Second, there is a reason why everyone is trying to beat the
S&P500. It's literally buying the best of the best stocks on a market cap
weighted basis. By adding more to it, I will be owning the best the market has
to offer at any given time.

I only buy stocks in my taxable account every two weeks. I
do this to try and stay away from “timing the market” which is impossible to
do. If you could time the market you would be a billionaire. I will write
another post on the 27 with my next purchase in my taxable account.

*Retirement Accounts *

I added to $VNQ and $QQQM in my Roth IRA. My 401k is
automated so I didn’t have to do anything but S&P500 and Total
International Index Fund was added to as well. I allocate 20% of my paycheck
every two weeks to 70% S&P and 30% international.
Our Second Purchase announced...SHOP
@brianferoldi and I are announcing our second purchase for our "From Scratch" investing portfolio. The stock we'll be purchasing: $SHOP.

Shares are down HUGE, but we're big fans of the business. @brianferoldi considers it high quality. I consider it Anti-Fragile. Here's what you need to know.

The company's mission -- "to make commerce better for everyone," checks all the boxes: it is simple, inspirational, and optionable. And it's important to note, it has also been tested in the past and remained squarely in the position as compass for company moves.

And a merchant can use the platform for...just about anything.

One huge thing we love about the company: dual income streams. Subscriptions have a flat rate, while usage-based merchant solutions grow as merchants grow.

What do these revenue streams actually mean?

It's worth noting that merchant solutions are growing faster (no surprise, as merchants grow on the platform) but are lower margin. Recently, however, gross profit from merchant solutions eclipsed subscriptions.

One thing we REALLY LOVE: we believe Shopify has varying levels of ALL FIVE MOATS that we evaluate. This is true for very few companies we've researched.

The results have been strong -- and the balance sheet is incredibly well-stocked.

Culturally, there's a TON to like as well.

There's tons of room for the company to grow

And outside of Amazon, Tesla, Mercadolibre, as Sea Limited -- few companies have such a history of optionality.

And despite being down HUGE, it's still been a winning investment over the long-run.

What about the risks? Here's what we see

Now, we get a lot of questions about valuation. We really don't spend too much time worrying about it. But we do note that on a P/S basis, SHOP is well within its historical range.

Would you prefer to see all this in video form? We just released it here:

One final note: you may have noticed we haven't made our first purchase of $AXON. That's because Brian and I both have trading restrictions based on our work for The Motley Fool. As soon as we're cleared to buy shares of AXON (and SHOP), we'll be doing that.
What do you think of Shopify right now?
73%This is a GREAT deal
26%Still too expensive...
63 VotesPoll ended on: 05/01/22
Our first purchase -- AXON
If you haven't heard, @brianferoldi and I are building a portfolio from scratch on Commonstock. You can see our portfolio by following us here.

We recently announced our first stock purchase: Axon Enterprise $AXON. Here's what you need to know about the company.

The company started with TASERs, but has moved on to body cameras and -- most importantly for us -- software solutions like Axon Evidence, Axon Records, and Axon Dispatch.

We believe there's multiple wide moats around the company.

The results have been strong and the company has a solid balance sheet with positive free cash flow.

Turning to leadership, the big thing to know about co-founder Rick Smith is that he's given up his salary in return for a huge payday in terms of stock ownership. That's why net income was negative last year.

We also believe the future is VERY bright

And it's been a GREAT investment

How about risks?

Want to know how the stock is doing if you follow along? Here are the three things we'll keep an eye on
What do you think of Axon?
69%Strong Buy
30%Not convinced
89 VotesPoll ended on: 04/26/22
Higher FCF Incoming for Axon
I liked $AXON's CFO explaining that its subscription bundling core and recurring Axon Cloud software sales have it poised to build FCF steadily over the long term.

As these cash-generating units continue to mature, Axon's lumpy FCF should smooth out and make it a genuine cash cow with consistent, recurring inflows.

I’m a digital evidence tech.

The problem is that their cost is double that of Motorola and as a result limiting their ability to expand into other cities (more cash flow)

Their advantage is the redaction software capabilities that Motorola doesn’t have yet and the cloud software which allow agencies to exchange data easily.
View 3 more comments
Remember the Big Picture
Yes, it’s tough psychologically now.

But I am genuinely grateful for these sell-offs.

If you are truly long-term oriented and consistently adding, this should typically be the case.

All down big -- and it may still get worse.

Regardless, a big thank you to the market. 🙏
25 for '22
This year I plan to build out more significant positions in these 25 stocks - partially due to lower prices, but primarily due to long-term mega-trends supporting each.

Curious if any of these looked terrifyingly bad (or good) to you all?

Paul Essen's avatar
$209.6m follower assets
Lots of talk of Spotify Wrapped. Why not Portfolio Wrapped?

Top 5 positions in terms of performance YTD:

$SWAV +70%
$TSLA +47%
$ETSY +46%
$AXON +36%
$SHOP +32%

Full disclosure: The bottom 5 are a lot uglier.
Hedge Vision's avatar
$103.9m follower assets
$3 Billion Hedge Fund with 10 Holdings
Colin Moran founded Abdiel Capital Advisors in 2015 with $205.8M in initial capital, growing his holdings value by $2.9B in less than 6 years. Moran is an activist investor, much like Bill Ackman.

Abdiel has returned 719.40% since their portfolio inception in Q4 of 2015, compared to the S&P 500’s gain of 102.64%. In fact, Abdiel averaged an annual return of 66% from 2015-2020, with an outsized return of 123.9% in 2020.

74.6% of Abdiel’s portfolio is invested in the technology sector, giving them a bullish stance on the industry. Abdiel prides themselves on being a concentrated, high-conviction fund and has never held more than 13 positions since their inception.

“Our ten largest investments frequently comprise more than 75% of invested capital. “
-Abdiel Capital “About” Page on their website

Abdiel reduced their holdings value in Q1 of 2021 by $430M, or -12.2% of their holdings value in Q4 of 2020. They reduced their positions in 2 holdings, $APPN and $AXON.

Abdiel’s largest holding is $FSLY, a CDN provider that utilizes the edge cloud platform. Fastly experienced an outage on June 8th, and in response, the stock actually closed higher on the day. This was due in part to Fastly’s extremely quick response time paired with widespread media recognition; several global websites were affected, such as Amazon, Reddit, eBay, and Spotify. Fastly is up 15.3% since the outage.

"We detected the disruption within 1 minute, then identified and isolated the cause, and disabled the configuration. Within 49 minutes, 95% of our network was operating as normal. This outage was broad and severe, and we're truly sorry for the impact to our customers and everyone who relies on them."
-Nick Rockwell - Fastly's Senior VP of Engineering and Infrastructure

Abdiel decided not to completely liquidate any positions in Q1, instead choosing to trim APPN and AXON. Both positions were originally acquired in Q2 of 2017.

APPN Estimated Purchase Price - Q2 2017: $26.35
Price Today: $138.86
Gain: 426.98%

AXON Estimated Purchase Price - Q2 2017: $39.31
Price Today: $158.76
Gain: 303.87%

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