Portfolio One Updated April, 2022

Portfolio one is 20 1/2 years old. The beneficiary contributed $10,000 (net of withdrawals) and the trustee $20,000 for a total of $30,000. The current value is $82,037 for a gain of $52,037 or 173%, which is 8.3% / year when adjusted for the timing of cash flows. Go to the link or here to see details.

This portfolio is down with the others and we can look at a few stocks:

  • Block (SQ) – this is an interesting stock but was hit hard in recent SAAS / payment stock re-valuations
  • Pinduoduo (PDD) – the Chinese tech stocks have been devalued by Chinese government actions, tensions with the USA, and a general re-evaluation of tech stocks
  •  Meta (FB) – Meta’s challenges are well documented as they pivot to Augmented reality – but they still make a lot of profits and have great assets worldwide
  • Rocket (RKT) – we sold half our rocket when they hit a “meme stock” high which is good in hindsight.  The stock pays a strong dividend but is hit hard by the impending raise in interest rates which chokes mortgage growth and refinancing
  • Alibaba (BABA) – like PDD this stock suffered from a triple whammy
  • Paypal (PYPL) – one of the most perplexing on the list, PayPal fell instantly out of favor with analysts after stopping guidance the shares cratered without a significant negative event in the business
  • OKTA (OKTA) – this software company had an acquisition the market didn’t like and then was hit with the overall re-evaluation of software companies valued by growth not profits

Portfolio Five Updated April 2022

Portfolio five is 12 1/2 years old.  The beneficiary contributed $6500 and the trustee $13,000 for a total of $19,500.  The current value is $35,277 for a gain of $15,766 or 80%, which is 8.2% / year adjusted for the timing of cash flows.  Go here or to the link on the right for more details.

Portfolio five has been impacted by the market decline, as follows:

  • We made some purchases earlier in the year of Appian (APPN), Intel (INTC), Block (SQ) and SNAP (SNAP) that fell 30% – 50% after the purchase.  We will look again these stocks
  • We bought Activision (ATVI) which did well (up 20%) with an acquisition offer from Microsoft; we should sell at this point
  • Cloudflare (NET), OKTA (OKTA) and PayPal (PYPL) have all been impacted recently.  Cloudflare fell far but came back.  OKTA made an acquisition that the market did not like and was hit by a hack and the general decline in software valuations.  PayPal stopped giving forward guidance and was hit hard by the market.  We will re-look at these stocks