Monthly Portfolio Review - July 2021

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Transactions

Acquisitions
I added to my positions in the following companies:

  • Paysafe ($PSFE)

  • iRobot ($IRBT)

  • AbbVie ($ABBV)

  • Shopify ($SHOP)

  • Facebook ($FB)

I opened a new starter position in Airbnb ($ABNB). This is a company that I had been watching for a while. The lockup period expired recently which resulted in the share price falling within a reasonable range for me in terms of risk/reward. I am expecting a real boom in travel and tourism post-pandemic and Airbnb gives me more direct exposure to this industry in addition to the exposure I have with Disney. If you are looking for a bit more details on Airbnb check out Watchlist Q3 2021 as it featured in this article.

Allocation

Earnings Roundup

The highlights of earnings released over the past month.

Johnson & Johnson reported revenue of $23.3 billion (+27% year-over-year), beating the consensus estimate of $22.3 billion. Net earnings was $6.3 billion compared to $3.3 billion year-over-year. 

Microsoft reported revenue of $46.2 billion (+21% year-over-year), beating the consensus estimate of $44 billion. Net income was $16.5 billion, +49& year-over-year. 

Shopify reported revenue of $1.12 billion (+57% year-over-year), beating the consensus estimate of $1.04 billion. Operating income was $139 million compared to a loss of $0.3 million year-over-year. 

Facebook reported revenue of $29.1 billion (+56% year-over-year), beating the consensus estimate of $27.8 billion. Net income was $10.4 billion, +101% year-over-year. 

iRobot reported revenue of $365 million (+31% year-over-year), beating the consensus estimate of $353 million. Operating loss was $3 million compared to a profit of $70 million year-over-year. 

PayPal reported revenue of $6.24 billion (+17% year-over-year), missing the consensus estimate of $6.3 billion. Net income was $1.18 billion compared to $1.53 billion year-over-year. 

AbbVie reported revenue of $14.0 billion (+34% year-over-year), beating the consensus estimate of $13.6 billion. Operating earnings was $4.4 billion compared to $0.8 billion year-over-year.

Final Words

This month I significantly increased the weighting of Facebook and Shopify in my portfolio. At the end of June these stocks were the 12th and 15th largest positions in my portfolio however they are now the 4th and 9th largest respectively. This was a deliberate move and is supported by another quarter of exceptional growth from both.

Check out last month's portfolio review Monthly Portfolio Review - June 2021.


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Happy investing

Wolf of Harcourt Street

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Disclaimer: I am not a financial adviser and I am not here to give specific financial advice. The opinions expressed are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. The information is based on personal opinion and experience, it should not be considered professional financial investment advice. There is no substitute for doing your own due diligence and building your own conviction when it comes to investing.