PORTFOLIO REVIEW AND BEST BUYS NOW.
What I am doing with my portfolios.
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Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.
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I reviewed the performance of my 2 POTS (portfolios) and then each position within them. I am adding to 3 positions in my 10X FREE CAPITAL POT and to 5 positions in my 10X SMALL BETS POT.
PERFORMANCE REVIEW
10X FREE CAPITAL POT [Link]
Since inception: -3.6%
Vs. SP500: -15%
Annualized: -7%
10X SMALL BETS POT
Since inception: -25%
Vs. SP500: -35.5%
Annualized: -46%
I am not concerned about where I am. I am investing for the long term and my POTS are not 1 year of age yet.
Below I am analysing my positions in the 10X FREE CAPITAL POT.
Today I am adding to the portfolio today $TSLA, $ABNB, $PTON and $APPS, for about 1000$ dollars each.
In a separate email, I'll explain to which names I'm adding within my 10X SMALL BETS POT (subscribers only).
$TSLA
Tesla keeps improving as a company in almost all key performance indicators. Now that it is a profitable company too, improving margins and efficiencies, what this company could become in the next 10 years? Accumulating Tesla at every dip looks like a very good strategy to me. Valuations are high, but it always has been the case with Tesla. This is not a car manufacturer company. It is way more.
Conviction rate: 9,5/10
$ABNB
Airbnb is crushing it! The company is super profitable and is investing heavily. That means they are very confident in the future and they want to stay leaders. When travel will resume after the pandemic, ABNB will shine. At current prices, ABNB is even cheap!
Conviction rate: 9/10
$PTON
The company had a bad quarter as the economy reopened. Sales had a strong deceleration and the market reacted sending the stock below 40 USD, about -75% from its all-time highs. Now Peloton that was investing aggressively to expand the business, finds itself in the position to cut spending, keep its profitability afloat, re-organize and grow again. This is a love or hate type of stock, like Tesla or Palantir, which is one of the reasons it is interesting. They have a massive market opportunity, and I'll keep an eye on their numbers. I think that below 40 USD it makes sense to add the stock to a long-term portfolio.
Conviction rate: 7,5/10
$APPS
This is a beautiful business, super profitable but... expensive. To justify further upside, the company needs to keep growing at a fast pace, which is happening. Their earnings margins compressed a bit too much over the last quarter. I am adding here and, any further price weakness would be a buying opportunity.
Conviction rate: 7,5/10
$SQ
A company I love because of its innovation abilities. Margins, Sales, and profitability are showing signs of slowing down. They keep investing heavily which is a very good sign. I'll keep an eye on it and I am not touching it right now.
Conviction rate: 7/10
$SNAP
They had a bad quarter because of problems caused by the last IO14 update, limiting their ability to monetize through ADV services. The company is improving profitability, efficiency and is investing heavily in its future. BTW valuations are high so is better to wait to see if the effects of the IO14 on their revenues were temporary.
Conviction rate: 7/10
$SWAV
A company with monster numbers, growing very fast, improving profitability, and heavily investing in its expansion. Again, valuations are a bit stretched so it has to keep this pace to justify further upside. A high conviction name over the long term. Any deep would be a great buying opportunity.
Conviction rate: 7/10
$ETSY
I love how profitable ETSY has become. BTW I want to see the company growing faster than today. ETSY is not cheap right now, so better to wait and see.
Conviction rate: 7/10
$KLIC
Here is a company with strong tailwinds from the high demand in the semiconductor sector. Unfortunately, in the last quarter, the company showed signs of slowing down across the board. The numbers are healthy but not trending where I want to see them. So let's wait.
Conviction rate: 6,5/10
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Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.