Portfolio Review - March 2021, -8.2%

2021 Total Return: 2.36% (-3.25% vs Nasdaq 100)

My stock portfolio is built around one central thesis - the digitalization of our world. I believe that,

  1. The digitalization of our world is 10% complete.

  2. This megatrend will continue for at least another decade.

I believe that this trend allows for outsized returns. That's why I invest a significant portion of my net worth into individual stocks. If you're interested in my monthly portfolio performance, deep-dives, and analysis around my holdings, feel free to subscribe below!


2020 finished with another strong month, +8.7%

As some of you might have noticed, I didn’t provide an update at the end of February.

Shame on me.

February was an incredible month with +8.8%.

March gave up all of these gains with -8.2%.

  1. If you invest in Tech, you have to accept volatility.

  2. This isn’t a crash. Valuations are still stretched across the board.

  3. However, you only get Tech on the cheap if it is misunderstood (Nutanix anyone?)

So hey, my portfolio is back at January levels. There are worse things to worry about.

The end of the year is of course an artificial benchmark, that isn’t that important in the grand scheme of things. Of course, I’d like to see my portfolio outperform my benchmarks again by then.

Right now, we’ve got some catching up to do. Most high-growth portfolios will be in the same position.

Portfolio & Performance 2021

  • Portfolio: +2.36%

  • Nasdaq: +5.61%

  • All World Index: +8.35%

Current Portfolio - End of March

I made two moves in February and six in March (per-share price in €).

Sold:

Crowdstrike

Exited my position in $CRWD to funnel the cash into $FSLY. Both were smaller starter positions in my portfolio and after Fastly got re-rated to what I believe is an attractive valuation entry point, I made the switch.

Teladoc

Loved Livongo. Indifferent on $TDOC. Wasn’t necessarily a fan of the merger. I tend to stay away from companies that primarily grow via acquisitions. All that goodwill on the balance sheet is not something I have the time to untangle. I may re-enter at lower valuations, as I do want exposure to the digitalization of the healthcare industry.

Agora

$API was an unusual endeavor for me. As the Clubhouse hype gained steam in January, I jumped on the momentum train. I do think it is an interesting company, albeit highly speculative. The stock went up 200% shortly after my purchase, and I sold it for a 60% gain to increase my cash position.

Q1 Earnings may be good, as the Clubhouse hype only really took off in January, and Agora powers many Dating Apps, which are seasonally strongest in Q1.

I will continue to watch and perhaps I’ll buy it for the long term at some point in the future if they show consecutive quarters of strong execution.

Added:

Sea Limited

High conviction in this company. Profitable Gaming business funds the growth in their Fintech and E-Commerce endeavors. Both are growing like weeds. I expect this one to grow into the valuation over the years and provided strong returns in the next decade.

I added to my position again in March. It’s one of two companies where I am inclined to buy any large dip without thinking about it twice.

The other company is…

Shopify

…$SHOP. If it dips considerably, I am a buyer.

My conviction in $SE and $SHOP has the same feeling as I always had with $AMZN.

Both companies are of course not cheap. Great companies never are. If they will remain great companies over the next decade., time will tell. I have a hunch that they will.

Just recently I made my first purchase on Instagram, powered by Shopify. It was so seamless and fast. That experience once again opened my eyes to how the world has changed, and how younger generations will be doing their shopping for years to come.

Peloton

$PTON crashed hard and I am a buyer below an EV/Sales of 10. Added to my position and will continue to do so in the future.

That multiple is of course only justified if a majority of their revenue comes from high-margin subscriptions. The contribution of these has gone up considerably in the last year and I don’t believe that Peloton owners will give up their workout to go to a gym full of sweaty people post-pandemic.

Fastly

Increased my starter position after $FSLY got sold off hard. This is a long-term play on their product offering becoming a platform.

I don’t expect much of that to happen in 2021. This position is a play for 2022 and beyond. It is still a small position and if the valuation continues to come down, then it may turn into a mid-size holding.

Cloudflare gets a lot more love on FinTwit. I prefer Fastly at this valuation and its focus on enterprise customers.

Twitter

I’d like to think I was ahead of FinTwit in discovering Twitter as an investment.

Since my initial purchase, the company has finally become good at storytelling and developing its features publically.

Twitter Spaces could play a significant part in increasing the time users spend on Twitter. The advantage over Clubhouse is that Twitter has the interest graph to promote interesting Spaces to users. The discoverability of high-quality content on Clubhouse is awful, and it’s probably the worst implementation of push notifications that I have ever witnessed. These shortcomings are opportunities for Twitter to build a superior product.

I obviously believe they will succeed in monetizing more effective ad formats and introducing subscription offerings. The logical conclusion was to funnel part of my cash position into a larger Twitter position.

Here’s my portfolio composition as of 31st March 2021.

Top Performers - YTD

Hubspot $HUBS is rarely mentioned in other portfolios. It’s done pretty well so far in 2021.

The Trade Desk, one of my favorite companies, is getting punished for their high multiple. I wouldn’t mind sideways movement with strong quarterly reports so that I can increase my position at more attractive valuations.

Thank you for following my investment journey. I hope you found this useful, and here's to an exciting April!

Thank you for reading!


I want to share two links that allow you to invest alongside me.

EToro

My EToro portfolio, click here.

If you are based in Europe and are a user of EToro, you can copy my portfolio. This replicates all of my trades in your portfolio. Feel free to check it out if you like the thought of more free time and me doing all the work for you.

My Wikifolio, click here.

If you are based in Germany, Austria, or Switzerland, then you can follow my Wikifolio. Once I publicize it, it would allow you to purchase a certificate through your broker that tracks my performance. Right now, you can watch it and can indicate whether you would be interested in investing.