A monthly update of the Compound 8 to 80 Portfolio…
The 8 to 80 Portfolio gained 5.25% (net of fees) in November.
The broad equity markets surged higher during the month with positive vaccine news from Pfizer and Moderna providing a hopeful light at the end of the tunnel. Investors are also anticipating another round of fiscal stimulus as well as continued monetary stimulus from the US Federal Reserve.
–Zoom reported another record quarter for revenue ($777 million, +367% YoY) and Net Income ($198 million). They now have approximately 433,700 customers with more than 10 employees, up 485% year-over-year (source).
-Zillow reported earnings (0.37 per share vs. 0.11 expected) and revenues ($657 million vs. $572 expected) well above estimates. Traffic to Zillow’s apps and websites hit 236 million unique monthly users, an increase of 21% over the last year.
Zillow’s Internet, Media, and Technology Segment showed very strong growth, with revenues up up 24% YoY and Adjusted EBITDA up 115% (source).
-Tencent reported another quarter of record revenues ($16.2 billion), up 24.4% over the past year. Net Income also hit a record of $4.67 billion on 32% YoY growth.
-McDonald’s beat on earnings ($2.22 vs. $1.90 expected) and revenues ($5.42 billion vs. $5.4 expected) driven by US consumers returning to stores faster than expected. Key to this bounce back was their competitive strength in the “3 D’s: Digital, Delivery and Drive Thru.”
Net Income for the quarter of $1.76 billion was the second highest in the company’s history. They also announced a 3% increase in their quarterly dividend.
The top performers during November were Zillow (+21.7%) and Spotify (+21.5%).
The bottom performers during November were Tencent (-4.4%) and McDonald’s (+2.7%).
A new position was initiated in Zillow.
Position size in Zoom was increased during a pullback in the stock.
End of Month Exposures
Cash and Cash Equivalents: 44%
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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security.
Past performance is no guarantee of future results. Performance results are shown net of fees and include dividends and other adjustments. All performance data is strictly illustrative and may differ from actual results.
Discussion of portfolio holdings are for illustrative purposes only and are not investment recommendations. The portfolio holdings are subject to change at any point in time.
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