Monthly Portfolio Review - Q3 2021

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Hi all,

After a couple of weeks away I am back with another newsletter edition. This monthly portfolio review edition will combine August and September as well as Q3 performance.

Transactions

Disposals 

Recently I made the decision to begin the process of concentrating my portfolio for a couple of reasons:

  1. Monitoring 24 stocks to the level that I deem necessary takes a lot of time which is a scarce resource for me at the moment

  2. Conviction in some of my stocks is far higher than others and this can lead to “Diworsification

I sold my entire position in Futu Limited $FUTU at the end of September for a 125% gain. I was happy to take the gains made in less than 12 months off the table and given the recent turbulence in China, I am more comfortable having direct exposure only through Nio. At the time of sale Futu was 2.5% of my portfolio. 

Acquisitions

I added to my positions in the following companies:

  • Fiverr ($FVRR)

  • Roku ($ROKU)

  • Johnson & Johnson ($JNJ)

  • Nio ($NIO)

  • Abbvie ($ABBV)

  • Square ($SQ)

  • Facebook ($FB)

  • Shopify ($SHOP)

  • Microsoft ($MSFT)

I didn’t open any new position over the past 2 months.

Allocation

Performance

YTD: 3.16% vs S&P 11.74%

Since inception June 2020: 38.42% vs S&P 29.17%

Final Words

September was not a good month for growth stocks. I purposely waited until the end of the month to do most of my buying as funds historically do a lot of selling at the end of Q3 and when funds are selling this always represents a good buying opportunity for the long-term retail investor.

At the end of Q3 I had not deployed the Futu proceeds however yesterday (October 1st) I reinvested the majority of the proceeds in Sea Limited which now equates to over 10% of my portfolio. I now hold 23 stocks and plan to reduce the portfolio size to a maximum of 20 stocks over the coming months.

If you read about my Portfolio Tier System you will see that I have now succeeded in making the 6 Tier 1 companies my 6 largest holdings. 

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