Great write up as always! Are you concerned about your stocks large market caps? I am so recently started some smaller positions in fvrr, mgni, band, and fubo.
Great question, and yes I am. One the side effects of the huge 2020 run is many of these companies are now at much larger market caps. Like you, I've started to look at smaller firms like FVRR, MGNI, APPS, SKLZ and NARI. The problem is all of those are quickly running up as well, so it's all relative.
First and foremost, I need to keep reminding myself that none of my current companies has done anything to deserve losing its spot. And I can't really fault them for executing so well their market caps have exploded. That being said, it does put them on a shorter least as far as maintaining their outperformance in order to justify the market cap. So, I can't say I'm looking to sell any current names due to market cap alone. However, it does put more pressure on quarter to quarter that they maintain their dominant ways.
What led you into those smaller positions? Do you see it differently?
I agree with you and see it similarly. My companies have done nothing wrong but i trimmed a little here and there to make room. I was partly inspired by Bear's year end comments to look for some up and comers with smaller market caps and high growth to add some spice and hopefully outsized returns. Our companies have come a long ways and might be a bit overvalued, with high expectations and the larger market caps he pointed out so I figured, why not hedge a bit? Thus, I've put ~10% of my portfolio in the 4 companies mentioned above over the past 5 weeks or so. FVRR - tom gardner is in love with it and keeps recommending it so that is how i found it. Love the high growth and high margins and smaller market cap.
MGNI - i used to own it and it gets a lot of talk in motley fool land though it's not an SA or RB pick. It's a turnaround but with CTV spend on the rise and TTD and Roku killing it, i think it follows that trend, it's' supply side to trade desks demand side and has a big deal with Disney. CTV is at a tipping point so could be a big year. BAND - david gardner pick, supposed to be a baby twilio type stock, just picked up 1% and getting to know it. FUBO, david gardner pick, love the streaming/sports aspect.
At the end of the day, the law of large numbers always kicks in . . . much harder to double or triple at a 40, 50, or 100 million dollar market cap so we'll see how my experiment turns out.
Great write up as always! Are you concerned about your stocks large market caps? I am so recently started some smaller positions in fvrr, mgni, band, and fubo.
Great question, and yes I am. One the side effects of the huge 2020 run is many of these companies are now at much larger market caps. Like you, I've started to look at smaller firms like FVRR, MGNI, APPS, SKLZ and NARI. The problem is all of those are quickly running up as well, so it's all relative.
First and foremost, I need to keep reminding myself that none of my current companies has done anything to deserve losing its spot. And I can't really fault them for executing so well their market caps have exploded. That being said, it does put them on a shorter least as far as maintaining their outperformance in order to justify the market cap. So, I can't say I'm looking to sell any current names due to market cap alone. However, it does put more pressure on quarter to quarter that they maintain their dominant ways.
What led you into those smaller positions? Do you see it differently?
I agree with you and see it similarly. My companies have done nothing wrong but i trimmed a little here and there to make room. I was partly inspired by Bear's year end comments to look for some up and comers with smaller market caps and high growth to add some spice and hopefully outsized returns. Our companies have come a long ways and might be a bit overvalued, with high expectations and the larger market caps he pointed out so I figured, why not hedge a bit? Thus, I've put ~10% of my portfolio in the 4 companies mentioned above over the past 5 weeks or so. FVRR - tom gardner is in love with it and keeps recommending it so that is how i found it. Love the high growth and high margins and smaller market cap.
MGNI - i used to own it and it gets a lot of talk in motley fool land though it's not an SA or RB pick. It's a turnaround but with CTV spend on the rise and TTD and Roku killing it, i think it follows that trend, it's' supply side to trade desks demand side and has a big deal with Disney. CTV is at a tipping point so could be a big year. BAND - david gardner pick, supposed to be a baby twilio type stock, just picked up 1% and getting to know it. FUBO, david gardner pick, love the streaming/sports aspect.
At the end of the day, the law of large numbers always kicks in . . . much harder to double or triple at a 40, 50, or 100 million dollar market cap so we'll see how my experiment turns out.
I also view MGNI and FUBO as extensions. I love roku and ttd so why not get some smaller streaming plays in there!
Thank you for the write up ! Always look forward to reading your thoughts end month :)