Stan Druckenmiller: The only way to win the hedge fund game is by being a ‘pig’
https://www.businessinsider.com.au/druckenmiller-on-concentrated-bets-2015-4
SHOP & TWLO? I Agree! I love them both. I could have regrets that I exited SHOP and TWLO both. I got in really early on SHOP and made 4x on my money. I thought it was too highly valued and that I could make higher returns elsewhere on faster horses. I was not wrong buying the likes of AYX and CRWD with the proceeds of those sales, but I was wrong about SHOPs growth potential and model…but I don’t regret or second guess my decision on either. I exited TWLO because they dropped the ball, lost one of their largest customers and were struggling with their sales team and exec team. It was the absolute Right decision at the time in mid-2019 and they dropped a lot, but clearly they turned things around, have benefited tremendously from COVID, added a new product and had a stellar earnings release. They were Up 40% one day a few weeks ago. Again, no regrets. They are only up about 35% from my sale. Many of my stocks are up 200% plus. When I see a company stumble in a quarterly release, that might mean my exit or partial exit. When I see a company get displaced or find a much faster grower like DDOG or CRWD I may sell some of my slower winners that are not growing as fast. It’s impossible to tell what SHOP or TWLO will do going forward, but both are amazing companies benefiting from the pandemic. I just choose right now to limit my portfolio to 10 and have no room for them in the current lineup. No FOMO here, but stoked to hear you own them!! Hope that helps and if you keep them you believe they can 3x from here…otherwise, I usually look for companies who can. 😜
