In case you hadn’t been following, our portfolio has registered an ATH(all time high) 4 out of the last 5 days in a row, including Friday, Feb 12, 2021. YTD it is up over 17% …And, yes, that is on top of the 202% returns for 2020. JP Morgan pointed out the other day what I wrote in my yearend summary…with seemingly infinite government stimulus in a near zero interest rate environment, everyone is looking to put their money somewhere and there simply aren’t enough assets to buy. Eventually inflation will set in and who knows what other challenges, but that may be even more of a reason to own solid, growing assets like the companies in the portfolio.
| CRWD | 16.70% |
| NET | 16.41% |
| DOCU | 12.00% |
| DDOG | 9.21% |
| OKTA | 7.01% |
| SNOW | 6.45% |
| ZM | 5.33% |
| ROKU | 4.04% |
| LSPD | 1.80% |
| UPST | 1.26% |
| BPRMF | 1.22% |
| NARI | 0.87% |
And on a company specific level, I want to point out that there is a massive difference between our high growth companies, who are putting up HUGE numbers and results quarter after quarter when they release earnings and who are reinvesting their profits into accelerating their growth and customer acquisition, and into providing the picks and shovels of this digital transformation; when compared to the many traditional “value” companies, who are propping up their companies’ stock prices by paying quarterly dividends, repurchasing their own stock on massive levels and relying on other “artificial” stock price inflators. While the companies in our portfolio will continue to improve their fundamentals, grow at a fierce rate, add customers, re-invent the way business is done, and create competitive advantages that must ultimately pull their stock prices higher along with their internal growth, the traditional so called”value” companies are not a “value” at all if they are no longer reinventing themselves, have stopped growing, and are artificially pumping up their stock prices. It is only a matter of time before these “value” stock prices must correct to reflect their deteriorating company fundamentals…the artificial price manipulation cannot continue indefinitely…at least that is my view and my investment philosophy.
