My portfolio
I like how people post monthly or quarterly portfolio updates. I’m learning a lot about what people are actually putting their hard earned money into by reading these.

My current mindset is, this is a top 10 bear market all time, as long as your buying companies without near term bankruptcy risk and with a long enough time horizon, it’s easy to buy great stocks a low multiples right now. With that said now that I’ve mostly finished building my new positions in $YETI and $DOCU. This month I’m looking to add more to my existing positions. Mostly $GOOGL, $ASML, $MELI, $PYPL, and $WRBY. I also started a small position in $UPST and I’ll cont to add to that as well.
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Nice, most are solid names in my book (the once that are not solid is because I don’t know much about them 😅)
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Portfolio Performance June 2022
A very ordinary first half of the year and kudos to those that are hanging in there. Hopefully we are all either hoarding some cash or picking up some bargains along the way ready to make some earnings on the next bull run (whenever that may come).

The most rewarding moment came for me this month when my total dividends earned for 2022 so far exceeded dividends earned for the entirety of 2021. This gives me some confidence that my strategies are sound and that there is something to be positive about.

Income Portfolio
Down 4.8% for the month, but slightly outperformed the SP500. Biggest gainer was $HII up 8% for the month. Biggest loser was $STLD down 18% over the course of June.

Growth Portfolio
I have intentionally been very inactive here, waiting for the market to turn. Biggest gainer was $AMWL up 25% and I did trim my holdings twice during the month. Biggest loser was $UPST down 34% for the month. The spike in the graph below only represents the $SHOP stock split. Unfortunately I didn't bank a big gainer that day.
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Jonathan Garcia's avatar
$10.4m follower assets
I try to think about my portfolio in terms of the strategy I had in mind at the beginning of the year. On 1/3/22, I had large positions in Cathie Wood stocks like $TDOC, $COIN, and $TWLO. We all know what happened to Cathie’s stocks. They have been the worst performers. COIN being the worst, down 70%. I still hold them, however. I haven’t completely lost faith.

Earlier in the year, I stated that I wanted to build heavier positions in MSFT, GOOG, and META because I did not think they would be affected as much by the economic downturn. I did indeed build up heavier positions in $MSFT, $GOOG, and $META as can be seen on the chart. META would be in a higher position but is down significantly on the year. I do believe that META is attractively priced right now.

Another thing I mentioned earlier in the year is how I was heavy in ecommerce and fintech. My ecom and fintech holdings are down significantly. I haven’t sold, still holding on. I am slowly accumulating. $ETSY and $UPST are some of my favorites for these areas. Also, like $RVLV.

I did add what I consider to be safer positions to my portfolio in an effort to preserve value. These types of additions included $UPS, $UNH, and $CNC. I am either up a little or down a little on these. They’ve done the job I’ve asked of them.

Back in January, I also said I would slowly keep buying Chinese stocks. Interestingly, these are my best performers for the year. $FUTU up 38%. $VIPS up 19%. $PDD up 27%.

A few weeks ago or so, I did some panic trading. It was hard to think clearly with all the down days. I was in and out of a few stocks over a period of a few days. I’m at a better place mentally now. I’m going to stick to my convictions. Will my strategy work? I don’t know, but I’m enjoying the process of learning and growing as an investor. Green days inspire hope. Red days are instructive and build discipline.
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Beaver Capital's avatar
$13.5m follower assets
June'22 - Growth Portfolio Update
Sells: None

I was on vacation most of the month, but made a few recent adds. Eyeing up some $MELI in the low 600's here.

YTD return: -42.2%
  • Tough month, but I am LT focused and believe adding on price weakness when the business metrics are improving is a prudent strategy.
  • Will deplete most of cash position in this weakness along with new cash coming in.

*can't link portfolio on CS currently due to not being in US.
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Steve Matt's avatar
$10.5m follower assets
Rule of 40^? How about the Rule of 100?
I'm in the process of updating my company metrics tracking spreadsheet and decided to include a calculation for the Rule of 40 for SaaS companies. Turns out I own a couple positions who meet the Rule of 100. What others are out there that aren't listed below?


Honorable mentions:

^ I use FCF for my margin.
ParrotStock's avatar
$257m follower assets
Limit Orders In
Time to set some limit orders…

As y’all know, the 9-5 is keeping me busy, so I’ve put in a few limit buys in case we get another dip.

I’ve got about half my cash lined up on limit orders. Here’s what I have pending:

$DIS $90
$TTD $45
$UPST $31
$ARKK leap at $9.75

Might adjust depending on the market, but leaving them open for now.

Time will tell if any of them fill.

🦜
Turbulence In Tech Continues - Where I See Pockets of Value
So with yesterday's CPI print, the market headed into a massive downtrend again. I invest in a bunch of different tech subcategories, but I've concentrated my portfolio (and research time) in certain parts of the market, in particular, to navigate these times - with several unknown unknowns about. It's not wise to respond with bravado but to wait and see with the unprecedented macro cocktail.

To put it simply, I wanted something that would be less exposed to US-macro cyclicality - when it comes to fundamental performance through a possible/probable recession.

My tech/growth universe includes:
  • Consumer Internet & Marketplaces
  • Fintech - Asset Holding Entities & Others
  • Software - Application, Infrastructure, Cybersecurity, AI
  • Renewable Energy & Related Tech
  • Semiconductors
  • A few strange uncategorized areas

IMO, attractive areas of value for prudent stock pickers exist within Software and Semiconductors. I don't mean the entire constituents of these categories - but these are compelling hunting grounds for fundamentals and valuation when everything is being sold off almost indiscriminately due to macro forces.

Why Software?
There's cyclical-related software, but then there's other stuff that's essential to the operations of all enterprises that smooths over a downcycle on sales. Mature businesses with free cash flow (FCF) are in a relatively much stronger position vs disruptive growers than they were previously. Private names and cash-burning tech that went public recently will have to lay off employees and spend considerably less on customer acquisition. This gives those who can spend on S&M a major strategic advantage. Quality is essential - a strong balance sheet with negligible cash burn, strong recurring revenue, and strong retention. Cybersecurity, infrastructure providers, and deeply integrated software vendors that have demonstrable ROI that's quick and recognizable will be fine. Software IS how a modern enterprise runs, and the enterprise will recognize that spending on the latest gen of digital transformation IS exactly how they'll be cutting expenses in this environment. I see parts of the category being seriously resilient even in a down-cycle on fundamentals. Meanwhile, ad-tech software and consumer-tied or marketing software are perhaps best avoided.

FCF generative leaders like $MSFT, $ADBE should be more than fine and others that are also category-leading disruptors like $SNOW or $CRWD... but for those who're really digging through, there would have been companies that were more drastically hit (70% or more) - that shouldn't have been based on their inherently high quality. That's where greater alpha might to be found.

Why Semiconductors?
This could be a contrarian take. Why am I suggesting perhaps one of the most historically macro cyclical industries around as an avenue for potential value? To put it simply, compute demand is on an exponential trend, and the semi-industries have struggled to keep up with the massive demand. Autos, data science, data centres, AI & ML, are trends that will keep up through a down cycle which impacts consumers more so than enterprises. The category as a whole isn't as consumer-related as before but is more infrastructure-related. The weak players will take the brunt of a down-cycle, while demand should stay much higher for the stronger players around. Many stocks took a hit already, and valuations have compressed quite a bit considering long-term potential. $AMD is one that fits the bill that I'm long-on. There's pretty solid stuff out there with moderate growth trading at <20 P/E now, down from 30x + on the value side.

Why Not Renewables & Energy Tech?
If you were invested in energy or the techy renewables since January, then congratulations on hedging some of this mess. My macro point of view is that the free market moves towards an equilibrium state - the speed depends on the elasticity of the systems involved. With something as complex as the supply chain of oil and gas, it is highly possible that geopolitical players like China and India would take on the volume that was imposed by sanctions in the West. It just takes a lot of time for supply to meet demand as the system is rather inelastic. But on a more important observation, energy-related companies are simply expensive for my taste now, and it's a bit late for the trend. The market has a tendency to take short-term trends and extrapolate them very quickly to justify a high sticker price. I think it was overdone with the software on the negative side and could be done with energy on the positive side now. The software has predictable sales and sometimes cash flows to ride on... energy can flip (or sustain, who knows?), and risk/reward just isn't that attractive to me should a reversion be severe.

Other Areas.
I do have some consumer-related picks, even in a US recession, but I think emerging markets like Southeast Asia, Brazil, or Korea are the way to go with a serious emphasis on profitable pathways. Again, weaker players will be eliminated, and the leaders will exercise pricing power. $SE, for instance, should be well supplied to ride out the death of GRAB and GoTo if it comes to that despite their cash burn, as they've got plenty on the balance sheet. Wait for competitors to die, raise prices. Emerging countries are also not experiencing the nutty inflation the US is. Korea is about 5% CPI instead of 8.6%. There's the US stimulus extra contribution towards the difference if you ask me.

Fintech is tricky... some are extremely cyclical, and others are much less so. It seems like the area has been crushed more than most other categories and appears higher-risk higher-reward in a few names should you get your thesis aligned. $UPST and $MQ come to mind.

P.S. I view everything with a long-term lens, and that means multiple years - even through a somewhat depressed economy. So that's the perspective with which I make my commentary. If you have a tactical trading and trend-driven style, these views may not apply to you.

Would love to also open the discussion to commentary on tech + the macro situation. I was perhaps late to fully grasp this, but one can't afford to be macro agnostic as before ... even if it worked for 10 years pre-2021.
$FICO CEO Will Lansing on the possibility of $UPST replacing them.

"It doesn't make sense to compare Upstart originations to a FICO Score. It makes sense to compare Upstart originations to FICO origination software because that would be a valid comparison."
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Steve Matt's avatar
$10.5m follower assets
My May Returns Are In!... And They're Not Great (Still).
As I said in April, my horizon remains 20+ years out. I see my portfolio getting pummeled right now and generally don't care. I only see opportunity.

Retirement Portfolio
In May, I added to $ABNB, $BIPC, $CHWY, $CRM, $CRWD, $DDOG, $GLOB, $JPM, $MMM, $MPW, $O, $OKTA, $PEP, $PGNY, $PLD, $PUBM, $SHW, $SWAV, $TROW, $U, $UPST, and $ZS. I also added to $AAPL, $COST, $JPM, $O, $SBNY, and $SBUX via DRIP. I exited $SMG and $XYL.

May saw my retirement portfolio retreat by 6.86%, bringing my YTD fall to 37.36%, easily getting beat by $SPY, $QQQ, and $VTI.

I'm still learning this new investment software so my all-time performance below is only through the end of 2021.

It's safe to say QQQ is beating me by at least a couple hundred bps through May 31, 2022. I'm certainly still trouncing SPY though.

My Top 10 holdings by current market value make up ~34% of my portfolio.

Taxable Portfolio
My taxable brokerage is ~10% of my total investments. It's also much more speculative (early stage medtech is a big portion). In May, I added to $SILK, $BTC.X, and $ETH.X. Nothing in my taxable brokerage pays a dividend so no DRIP. I didn't exit anything either.

May saw my taxable portfolio retreat by 9.67%, bringing my YTD fall to 42.22%, easily getting beat by $SPY, $QQQ, and $VTI.

My taxable has gone through 3 different iterations over the past 13-ish years. You can see there was no holdings around 2013 and again around 2017 as I sold out of all positions for different life reasons. The beginning to 2013 iteration was the "I don't know what the fuck I'm doing, let me buy random companies I know with no research and pray" phase. Thankfully it was a bull market and I got lucky. The 2014 to 2017 iteration was "I nailed it last time. I'ma do that again but also play with options as well" phase. You can see how well that worked out.

This iteration is actual research with a what-can-this-company-be-in-a-decade being my main thought. This approach is why I don't mind seeing my this portfolio getting whooped. None of the positions in this portfolio are core holdings, which means I follow them quarter-by-quarter via 10-Q/K, press releases, general news, etc. I have my finger on the pulse and the underlying businesses are performing as I hoped or struggling by with bright spots (looking at you $DMTK, $LMND, and $BIGC).

(Note: I didn't lose almost all my money in 2015 but I can't figure out why the software is calculating it that way. 2015 was a bad year in the taxable portfolio but not that bad. Hopefully I have it corrected for my June update).

My Top 10 holdings by current market value make up ~90% of my portfolio.
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