Portfolio changes - update 5
I sold my starter position in $AMZN because:
- I'm no big fan of Jassy's leadership
- I don't really care about the e-commerce side too much and so really when I put things side by side, I care about Gaming, Ads, Streaming, Subscriptions, Cloud Computing
When you think about it, $MSFT has all of that with way better leadership (IMO), consistently beating expectations, not so vulnerable to macro environment and way better optimized for cash flows and profits, so instead I'll likely add to my $MSFT position there.
I sold $ETSY too, since there's positions which I have a higher conviction in, in my Gig Economy allocation, for example $FVRR.
I initiated a position in $QCOM, as planned since several weeks ago when I made a post about it.
Fair point. But I feel if you want more pure exposure to cloud computing, the way to get it is more via $AMZN than $MSFT. Also, $MSFT is quite highly valued in this environment and is already cost optimized to the perfect operating margin; $ AMZN has so much room to optimize the cost side so that the real profitability starts to show. But both companies will IMO still be great compounders in the coming years.
@rihardjarc in my eyes $MSFT is just a better business. I feel like e-com and logistics is going to hold them back even as cloud and other high margin parts grow. I don't really expect too much of a CoS optimization since Amazon e-com and logistics is arguably already at full scale and yet barely profitable. I just prefer full software in that case since that's why I invested in Amazon for to begin with. I also like Satya way more than Andy and just really like that exposure to Azure, Dynamics 365, Xbox (cloud gaming), and LinkedIn... all growing >30%, which is just mind-blowing to me. I'm not saying $AMZN is bad, just that I like Microsoft better and so I found it appropriate to consolidate into my high conviction players. Good luck to longs though!