Happy Holidays to everyone as we grind down the last few trading days of 2020. I am always asked each time we have a small correction or down day in the portfolio, like today or last Wednesday, if this is it…the end of the multi-year run that has left us up more than 1000%??
Who can even hazard a guess, really…but I admit it gives me a lot of comfort when the entire portfolio is down all together, since I can be certain they are not ALL falling apart at the same time and all of a sudden. I also would say that most of our stocks are not what I deem “stay at home” stocks that will fade away as soon as the Virus is beaten back.
These SaaS companies represent a LT trend that will play out over the next 5 years or more. I’m not worried about our company’s fundamentals. They could have another 35% (or more) correction as they have had 4 times in 3 years, but we’ve held them through each correction and come out way ahead. Indeed, after the past three days we are back where we were less than 10 days ago?!! I am far less worried when they all go down than when any one goes down alone on some specific news or fundamental change in the company. Zoom is the only one company I’m a little worried about after the pandemic, as they can’t sustain the growth rate, thus, I have reduced the position significantly as stated above.
I have always advocated purchasing these companies in thirds and fourths. Drops like these might be the opportunity if you have not established an entire position to do just that at a discount. It is not uncommon at the end of the year to see some profit-taking, some digestion, and some money being taken off the table. I suspect January will be another trend up, but of course, I could be wrong and all manner of things could go South. As long as you have the benefit of time on your side and are investing for the long term in solid, fast growing, fundamentally sound companies like these, the LT trend will in all likelihood remain your friend.
It has been a pleasure to keep my thoughts in this format along the way.
As many of you know, I started a website and a blog a few years ago and have been a distracted and delayed trying to port 3 years of texts and blogs and articles and graphs over to it. I have given up on getting it perfect and will simply begin using it next week in conjunction with this text string. I hope you enjoy it and that I don’t “over post” or belabor things. This is meant to be straightforward, educational and informative…and I am always rewarded when I hear that someone has learned something new and/or benefited directly or indirectly from the information.
Wishing you happy holidays and much health, happiness and prosperity in 2021! May we all have learned not to take our friends or family and the comfort of hugs and time together for granted…much gratitude 🙏 for all your questions, encouragement, well wishes and friendship. -Victor
User comment: Thank you Victor and happy holidays to you and everyone else on the thread 🎉 🎉 🎉
