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6 New Starter Positions
As always, I will continue to pick up tiny starter positions in companies that fascinate me. This strategy helps me keep track of them and entices me to add to them over time -- especially if they continually outperform.

Here is the list and a concise reason why I bought each:
  • $THO - Way more stable than I ever would have expected -- strong in troubling times and consistently profitable with improving trends in its favor from younger generations.
  • $CACC - Unbelievable compounding over time in the "high-risk" auto lending space. Often seen as predatory, but usually, the only option left for many. Not sure what to think of this grey area -- what are your thoughts?
  • $POOL - Generates most of its revenue from recurring sales, maintenance, etc., versus needing new pool construction nonstop. -- 1% div and 18% payout ratio.
  • $ODFL - Most profitable less-than-truckload operator out there will only grow in importance with time -- 0.4% div and 9% payout ratio.
  • $CGNX - Dominant in the machine vision space and has many attractive, rapidly growing verticals to lean on -- 0.6% div and 16% payout ratio.
  • $NNI - Price to tangible book value of 1, and a weird business. Collecting repayments on student loans and would benefit from a government-induced student loan bailout -- 1.2% div and 8% payout ratio.
Pool Corp - the boring compounder
$POOL is a large distributor in everything related to outdoor lifestyle products (you guessed it… pools!).

Growth has been fairly consistent and the demand during the work from home and southern migration in the US coupled with housing equity rising has meant some pull forward in the last two years.

Management has worked at reducing cyclical business impacts by building and prudently maintaining a strong balance sheet recently. Debt has remained low while EBITDA has grown.

The pool business will be loosely tied to the housing market. If there is a housing downturn, there will likely also be a dampening of the sales from Pool Corp.

Given that the business does not have an impenetrable moat from competition, I believe the value you are getting here is a combination of a good boring compounding business and a potentially great management team; not the other way around.

For more on the business and management quality, downside risks, and valuation check out my dive into $POOL (paywall - free trial available).

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Love $POOL.

11-year dividend increase streak, 0.8% dividend and a tiny 18% payout ratio.

Impressive that parts, maintenance, and refurbs make up so much of their revenue as that is basically recurring.

Very hard to think that if you bought Pool today and held it for a decade you’d be worse off.

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Upcoming Earnings Calendar (Feb 14th - 18th)
Hey guys! Here's the upcoming earnings calendar! Three of my holdings report next week.

  • $ABNB - The stock has held up pretty well during the market sell-off. The valuation is still high, but with re-openings the company could see a big boost this year.
  • $TTD - They've said Apple IDFA is a non-issue, so their growth should be great. A key indicator of ad spend.
  • $ROKU - The stock is down almost 64% from ATH, but the fundamentals keep improving. I expect great results from the company, with ARPU growing and margins expanding.

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.





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