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We Went on a Shopping Spree

Feb. 29, 2024
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Wiko Steyn
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Wiko Steyn

Core Fund Update 3: #12 of 20 stocks added

We are not in the business of calling bottoms, but in times like these we will follow legendary investor Warren Buffet's advice:

Be fearful when others are greedy, and greedy when others are fearful.

After the absolute bloodbath on 5 May 2022 when the Nasdaq fell by 6%, we were on the street looking for the best long term investments.

Luckily we have only spent 12.5% of our $20K cash in our Core Fund thus far, so we went ahead and picked up 5 of our favourite stocks currently on sale. We also added to some of our current holdings.   

In the coming weeks, we will take a deeper look at some of our new positions. For now, here is a brief overview of each company and our short bull thesis.

 

MercadoLibre

MercadoLibre which means, free market, was founded in Argentina in 1999. It started out as an online consumer-to-consumer marketplace for used goods. The company transformed into a fully-fledged eCommerce platform in Latin America. Today, they also allow companies to build their own eCommerce platform while MercadoLibre provides all the logistics. Mercado Pago is their digital payment solution and is currently their growth engine. It has expanded vastly in LatAm and is now the largest fintech provider in the region.

Bull Thesis: Spearheading the LatAm technological revolution. 


ASML Holdings

ASML is a Dutch company that produces some of the most critical products in the modern world. The extreme ultraviolet (EUV) lithography machines produced by ASML are needed by every semiconductor manufacturer in the world. Semiconductors are the little chips inside every technological product you use.  We will not go into the details of these extraordinarily complex systems right now, all you as an investor should know is that they are the only supplier in the world who has mastered this technology. 

Bull Thesis: ASML might be the best monopoly in the world.


MongoDB

MongoDB is a highly popular open-source, cross-platform, NoSQL, document-oriented database program. That is simply too many hyphenated words, what does this company do? Most apps are powered by a database and MongoDB provides this database to empower their clients to get to market faster by building smarter. Essentially MongoDB makes it easy for developers to store, query and index structured or unstructured data.

Bull Thesis: The world revolves around data and MongoDB is at the centre of this. 

 

DataDog

DataDog is a cloud-based monitoring and security platform. DataDog has the answers to the important questions like: What is broken? Why is this taking so long? Modern programs have gotten more complex and it is becoming essential for developers to know what is going on under the hood so that they can pre-empt and troubleshoot as early as possible. DataDog lets you see inside any app, any stack, at any scale, anywhere.

Bull Thesis:  All this data is useless if it is not monitored and analysed.

 

Salesforce

Salesforce is a Customer Relationship Management (CRM) platform that brings customers and companies together. Founded in 1999, the company is considered to be one of the pioneers of the software-as-a-service (SaaS) business model.  Salesforce built an integrated platform where different divisions inside a company can get a single shared view of every customer.

Bull ThesisPrioritising the customer will never go out of fashion.

 

A Roundup of Earnings this Week

This was an easy one!  AMD had an absolute blowout of a quarter and we saw beats all across the board. DataDog same as above. MercadoLibre same as above. We thank these companies for not complicating matters for us this week.

 

Portfolio Update Summary

  • Buy $500 AMD at $92.18
  • Buy $500 DDOG at $103.11
  • Buy $500 Meli at $906.67
  • Buy $250 ASML at $553.43
  • Buy $250 MDB at $287.88
  • Buy $250 CRM at $168.21
  • Buy $250 VEEV at $170.50
  • Buy $250 GOOG at $2295.51
  • Buy $250 AXON  at $96.02
  • Buy $250 ADBE  at $386.70

 


Disclosure

This article is not financial advice and only the opinion of the author. The $20K in the Core Fund is not real money and only a demonstration of a typical portfolio.



 


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