Read on Twitter
It’s easy to be your own worst enemy
by behaving like a trader
when your intent is to be an investor
Part 2
[THREAD]
by behaving like a trader
when your intent is to be an investor
Part 2
[THREAD]
1/x
I previously talked about how the mismanagement of my position in The Trade Desk $TTD has cost me USD $26,000 that I could have had simply by doing nothing.
Read that first https://twitter.com/adventuresinfi/status/1226383007034073088?s=19
I’m">https://twitter.com/adventure... now going to talk about how errors can compound to work against you
I previously talked about how the mismanagement of my position in The Trade Desk $TTD has cost me USD $26,000 that I could have had simply by doing nothing.
Read that first https://twitter.com/adventuresinfi/status/1226383007034073088?s=19
I’m">https://twitter.com/adventure... now going to talk about how errors can compound to work against you
2/x
I talked about how I eventually relented
and rebought shares of $TTD for $140 in Sept 2018
What I didn’t say was that I sold my shares in $SHOP.CA
to do so….
And that decision cost
me CAD $26,160
(or USD $19,682)
Doh
I talked about how I eventually relented
and rebought shares of $TTD for $140 in Sept 2018
What I didn’t say was that I sold my shares in $SHOP.CA
to do so….
And that decision cost
me CAD $26,160
(or USD $19,682)
Doh
3/x
I originally bought
60 shares of $SHOP.CA
(on the TSX)
on 17/07/2017 for CAD $115
(USD $86)
Total cost CAD $6940
I was attracted
by the leadership in non - $AMZN e-commerce
I originally bought
60 shares of $SHOP.CA
(on the TSX)
on 17/07/2017 for CAD $115
(USD $86)
Total cost CAD $6940
I was attracted
by the leadership in non - $AMZN e-commerce
4/x
Shopify is a leader
in an important emerging growing market
with secular tailwinds that can run for a decade
https://twitter.com/saxena_puru/status/1226490195853209601?s=20
And">https://twitter.com/saxena_pu... I really liked the level-headed leadership by Tobi Lutke
https://podtail.com/en/podcast/how-i-built-this/shopify-tobias-lutke/">https://podtail.com/en/podcas...
Shopify is a leader
in an important emerging growing market
with secular tailwinds that can run for a decade
https://twitter.com/saxena_puru/status/1226490195853209601?s=20
And">https://twitter.com/saxena_pu... I really liked the level-headed leadership by Tobi Lutke
https://podtail.com/en/podcast/how-i-built-this/shopify-tobias-lutke/">https://podtail.com/en/podcas...
5/x
I always felt $SHOP was expensive (why would it be cheap?), but
given the compounding growth and tailwinds the premium seemed reasonable
I was cautious with the size of my initial position to mitigate the valuation premium risk
I always felt $SHOP was expensive (why would it be cheap?), but
given the compounding growth and tailwinds the premium seemed reasonable
I was cautious with the size of my initial position to mitigate the valuation premium risk
6/x
As I tried to make amends for selling
The Trade Desk too early
I tried to compound my gains with $SHOP.CA
(up 80% in just over a year) into a $TTD re entry
I decided that since $TTD was “cheaper” on an EV/s basis
that I should sell all my $SHOP
to buy back my $TTD
As I tried to make amends for selling
The Trade Desk too early
I tried to compound my gains with $SHOP.CA
(up 80% in just over a year) into a $TTD re entry
I decided that since $TTD was “cheaper” on an EV/s basis
that I should sell all my $SHOP
to buy back my $TTD
7/x
What I hadn’t reckoned on was the valuation expansion of the SAAS category
as the general market
realised the long term compounding high gross margins
that the best software stocks could offer
I also didn’t expect $SHOP http://SHOP.CA"> http://SHOP.CA to go on its insane run
What I hadn’t reckoned on was the valuation expansion of the SAAS category
as the general market
realised the long term compounding high gross margins
that the best software stocks could offer
I also didn’t expect $SHOP http://SHOP.CA"> http://SHOP.CA to go on its insane run
8/x
Today, those 60 shares of $SHOP.CA would be worth $CAD 38,200
I do not find Shopify attractive at today’s premium
vs alternative software/fintech investment options
#gid=1772428688">https://docs.google.com/spreadsheets/d/1T9AO9ZMUAtVms4hzvbtXEe25bwJa8C1BcWZzkv7OC0Q/edit #gid=1772428688
℅">https://docs.google.com/spreadshe... @nnamdiu
But I still like the business LT and would be a happy shareholder
Today, those 60 shares of $SHOP.CA would be worth $CAD 38,200
I do not find Shopify attractive at today’s premium
vs alternative software/fintech investment options
#gid=1772428688">https://docs.google.com/spreadsheets/d/1T9AO9ZMUAtVms4hzvbtXEe25bwJa8C1BcWZzkv7OC0Q/edit #gid=1772428688
℅">https://docs.google.com/spreadshe... @nnamdiu
But I still like the business LT and would be a happy shareholder
9/x
I did buy back some $SHOP (NYSE)
in my short-term taxable account at USD $124
but then sold those at $160 after the scare of Dec 2018.
https://adventuresinfi.substack.com/p/how-i-lost-25000-in-two-months
But">https://adventuresinfi.substack.com/p/how-i-l... it would be much easier to be a long term holder
when you are way up from your entry price...
I did buy back some $SHOP (NYSE)
in my short-term taxable account at USD $124
but then sold those at $160 after the scare of Dec 2018.
https://adventuresinfi.substack.com/p/how-i-lost-25000-in-two-months
But">https://adventuresinfi.substack.com/p/how-i-l... it would be much easier to be a long term holder
when you are way up from your entry price...
10/x
The lesson here is to stay the course with your best ideas.
I could have been paid an extra USD $45,000 ($TTD+$SHOP)
over the last 2 years
for literally doing nothing
Rather than succumbing to the urge to do something
The lesson here is to stay the course with your best ideas.
I could have been paid an extra USD $45,000 ($TTD+$SHOP)
over the last 2 years
for literally doing nothing
Rather than succumbing to the urge to do something
11/x
I’m not bitter or just self-flagellating in public
Just sharing so others can learn from this
I am much wiser than I was, and consider it
An expensive but worthy market education
If you want long term compounding gains
be an investor, not a trader
/fin
I’m not bitter or just self-flagellating in public
Just sharing so others can learn from this
I am much wiser than I was, and consider it
An expensive but worthy market education
If you want long term compounding gains
be an investor, not a trader
/fin
