“You should take the approach that you’re wrong. Your goal is to be less wrong.” Elon Musk
In the online world, we are constantly flooded with endless information. These days, it is not hard finding success (and failure) stories.
Personally, for me I enjoy reading news, blogs, forums, investing platforms. While visiting investing platforms, eg. Valuebuddies, Investing Notes, StocksCafe.. I always like to take a look at what others are investing in. How are their performance, what have I been missing out and how I can improve myself when it comes to investing.
As per Elon’s quote above, I feel that we should view our path towards financial freedom as a learning journey, and to take little steps towards being less wrong.
Singapore Investor Bloggers with min. 1 SGD Million Stock Portfolios (read here)
Often I come across stocks which I am not familiar with. For me, I am more familiar with Singapore listed stocks – the usual REITs, banks, consumer staples, and some growth stocks. However, the universe of stocks is much bigger (esp. in the US and Hong Kong markets), and there are countless strategies.
If I am thinking about Growth strategies specifically (aka via capital gains), I would like to know which are the recent high performing stocks. What are the growth stories behind the stocks. One way, is to check out the best performing portfolios shared online. However, havig said that, I am always aware that past performance is not indicative of future results.
In addition, how true is the allocation and figures presented online by often anonymous users, is also questionable. Likewise, the reflected gains may not include past (mega) realised losses.
I am also not here to promote nor shame anyone’s portfolio. I am just looking at the capital gains aspect of it, which in a way, I feel is somewhat limited. For instance, others could be building up dividend portfolios, aiming to build up more passive income. Or to have a more diversified portfolio (with bonds or crypto) that can weather through the ups and downs, high or low inflation, etc.
So yes, an imperfect method, but good to know nevertheless.
In StocksCafe, there is a long list of shared portfolios. In this article, I will go through the Top 5 performing portfolios, base on their 3 years percentage performance/gains. Data were taken on 17 March 2021.
Personally, I view 3 years as a sweet spot. Although I do like to have more years considered when viewing portfolios, however the next jump is Time (All), hence, there is no specific time frame. On the other hand, any time span less than 3 years, I feel is too short to evaluate the performance.
By the way, I will be referring to each of these investors as a he/him, although I do know the person could be a she/her (just for simplicity sake).
As you can see above, the top 5 performing portfolios belong to the following user names:
What are in their portfolios?
For this investor, his portfolio seems rather condensed and focused. His top holding is Novavax (more than 60%), followed by cash, then Qualcomm. The rest are small holdings in China Tower Corp Ltd and many Singapore Saving bonds.
Let’s just focus on Novavax since base on the figures presented, he managed to achieve an astounding 1627% overall unrealised profit (including dividends). The average buy price is $12.864. This outsized performance dramatically pull up his whole portfolio.
He probably did not buy all his Novavax stocks at one go. However, if we are to assume he bought most of his Novavax stocks at one go, it would be sometime in early 2020, near the bottom of the market in March 2020. In all of 2020, Novavax shares skyrocketed north of 2,700%.
Novavax, Inc., a biotechnology company, focuses on the discovery, development, and commercialization of vaccines to prevent serious infectious diseases and address health needs. The company’s vaccine candidates include NVX-CoV2373, a coronavirus vaccine candidate that is in two Phase III trials, one Phase IIb trial, and one Phase I/II trial.
Is Novavax Stock A Buy On Its Leading Covid Vaccine Effectiveness? (read here)
To quote the above article:
” On 12 March 21, the company said its coronavirus vaccine was 96.4% effective against mild, moderate and severe cases of Covid-19 caused by the original strain. The vaccine was also 48.6% effective in a midstage test in South Africa where mutated strains are dominant.
Last month, Novavax inked a deal with Takeda Pharmaceutical, which will run Phase 1 and Phase 2 testing in Japan. The company also completed enrollment of final-phase studies in the U.S. and Mexico.
Numerically, that puts Novavax’s vaccine ahead of authorized drugs from Pfizer with its partner BioTech, Moderna and Johnson & Johnson. The Novavax drug also outperformed the coronavirus vaccine from AstraZeneca.”
Hahahaha… can’t stop laughing at this user name. This person has a sense of humour.
Another highly focused (US listed stock) portfolio. His top holding is no stranger to anyone. Well, few people will NOT know Tesla after its outsized stock price performance (7x) in 2020 and early 2021. This is one stock that needs no introduction.
He is super focused on Tesla stocks, at more than 95% weightage with an average buy price of S200.795. This gives him an unrealised gain of 237.10%.
The last time Tesla stocks traded at around $200 was sometime in June 2020 (or back in 2019). I am assuming he did not buy all at one go. By conventional metrix, Tesla stock was never in my opinion cheap… yes $200 was low (in hindsight now), but was it cheap then? I shall leave it to the Tesla’s bulls to elaborate.
Why Shares of Tesla Soared Nearly 30% in June (read here)
So what were the news about Tesla in June 2020? To quote the above article (dated 6 July 2020):
In June, a steady stream of positive news helped fuel the carmaker’s rise:
– On June 8, news broke that the Chinese version of Tesla’s Model 3 — which is manufactured in Shanghai — saw record-breaking sales in May. Not only did sales more than triple from April to 11,095, from 3,645, but they also surpassed March’s record of 10,160. That caused a big pop in the company’s stock.
– Also on June 8, newly public rival carmaker Nikola, which is also named after inventor Nikola Tesla — announced it would begin taking reservations for its own electric pickup truck, the Badger, on June 29. Considering that Nikola has also been focusing on the semi-truck market, its stock’s outperformance increased interest in — and provided some validation for — Tesla’s proposed Semi and Cybertruck products.
– Late on June 9, an internal Tesla email leaked, in which CEO Elon Musk told employees that “it’s time to go all out and bring the Tesla Semi to volume production.”
– Musk tweeted on June 21 that a seven-seat, three-row option for the Model Y crossover SUV would likely begin production in 2020 instead of 2021. This cheered investors, as it’s a sign that the company is doing a better job of accelerating production, which should lead to higher growth.
– On the last day of Q2, Tesla’s stock surged as rumors abounded that it might post a fourth consecutive quarter of profitability. That would make it eligible — some even say a shoo-in — for inclusion in the S&P 500 index, which would trigger buying interest from index funds and other institutional investors.
His portfolio consists of all US listed tech stocks, although the iShare Hang Seng Tech ETF is more Hong Kong/ China tech focused. Top holdings being Tesla, Square, iShares Hang Seng Tech ETF and Palantir.
Square, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments; also provide reporting and analytics, and next-day settlement.
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.
As for iShares Hang Seng Tech ETF, see below for the top 10 holdings in this ETF.
Personally, looking at the unrealised gains from all his holdings, I am wondering how he managed to achieve an overall unrealised 3 years gain of +386.23% for his portfolio.
His portfolio is more diversified with some Singapore listed REITs in addition to the US listed tech stocks.
His top holdings are Digital Turbine, Palantir and Nio.. In addition, he is not too heavily focussed on anyone unlike some of the above examples.
His average buy price for Digital Turbine is $11.466. This gave him an unrealised gain of 593.44%. Again, I am assuming he did not buy all at one go. However, if he did, he would have bought it just when the stock price skyrocketed.
Digital Turbine, Inc., through its subsidiaries, provides media and mobile communication products and solutions for mobile operators, application advertisers, device original equipment manufacturers, and other third parties worldwide.
Why Digital Turbine Stock Jumped 44% Last Month (read here)
To quote the above article:
“The stock has been a huge winner over the last year, and the latest report helped show why as it’s benefiting from a number of trends, including increased spending on programmatic advertising and as companies placed a premium on content discovery during the pandemic.
While those gains faded over most of the rest of the month, the stock got another boost at the end of February when it announced its acquisition of AdColony, a mobile advertising platform with 1.5 billion users, which will increase mobile advertising revenue. Digital Turbine said it will pay $350 million to $375 million in the deal, which is expected to close in the current quarter.”
He has 19 holdings in his portfolio (relatively more holdings compared to the other four). His top holdings are US listed tech stocks. Will be just showing his top 5 holdings.
His top 3 holdings are Digital Turbine, Magnite and Trevena.
His average buy price for Digital Turbine is $6.11. This gave him an astounding unrealised gain of 1201.31%.
His average buy price for Magnite is $8.278. This gave him an impressive unrealised gain of 447.21%. Again, I am assuming he did not buy all at one go. However, if he did, he would have bought it just when the stock price skyrocketed.
Magnite, Inc. operates an independent sell-side advertising platform in the United States and internationally. The company’s advertising platform enables publishers to monetize various screens and formats, including CTV, desktop display, video, audio, and mobile, as well as allows agencies and brands to access brand-safe ad inventory and execute advertising transactions.
Trevena, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel medicines for patients affected by central nervous system disorders. Its lead product candidates include OLINVYK (Oliceridine) injection, a G protein biased mu-opioid receptor (MOR) ligand for the management of moderate-to-severe acute pain; TRV027 for the treatment of acute lung injury contributing to acute respiratory distress syndrome and abnormal blood clotting in patients with COVID-19; TRV250, a G protein biased delta-opioid receptor agonist that has completed Phase I clinical study for the treatment of acute migraine; TRV734, a small molecule G protein biased ligand of the MOR that has completed Phase I clinical study for the treatment of moderate-to-severe acute and chronic pain; and TRV045, a novel S1P modulator for managing chronic pain.
Looking through their portfolios, we can see that many of them have highly concentrated portfolios. Many have only a few stocks, and their top holdings typically occupy more than 30% of their portfolio.
In addition, typically they invest in high growth US listed tech or biopharmaceutical stocks (see below). In general, the pandemic has provided a huge tailwinds for these stocks.
1) Novavax, Inc
2) Tesla, Inc
3) Square, Inc
4) iShares Hang Seng Tech ETF
5) Palantir Technologies Inc
6) Digital Turbine, Inc
7) NIO Limited
8) Magnite, Inc
9) Trevena, Inc
On another note. for me, sometimes by looking at other people’s portfolio, I discover new stocks which I was not aware of previously.
” You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever.” Steve Job
I know I am repeating myself again, but shall say it again, part performance is not indicative of future results. With high growth tech stocks, they are generally more volatile than value stocks. In addition, with the general rotation from growth tech stocks to value plays, the near term stock performance is anyone’s guess.
IMHO I believe investing is really a personal endeavor, others’ portfolios may not suit you or me. For example I can invest in exactly the same stocks as them, but I may not have the same conviction as them. When the stock prices drop, I may not be able to hold or may not know enough to invest more.
They could be at a different stage, eg. could be younger with longer runway. Or their portfolio is just a fraction of their net worth. Or they have different risk tolerance, etc.
I like to think of this as an initial step to find out more about these stocks and the companies behind them. To study their financials and business growth. Does their values and narratives resonates to me, can I relate to them. Finding more dots to connect to using this as the first dot. It might also lead to other companies and stocks.
The other step which I think is important is to understand their thought process when they invest. Some of the people who shared their portfolios do post their thoughts in blog posts. Unfortunately, I don’t see any blog posts from these top 5 investors.
As mentioned earlier, I will from time to time go through online forums and online portfolios to check out what others are discussing about and what they are investing in. StocksCafe being one of them. Well, maybe just being a busybody or like how gamers who peek at how other top players managed to break the high scores.
I find StocksCafe useful for the tracking of my own portfolio, and especially like to use it to track my portfolio stock dividend / bond interest payouts (projected and due). You can use my referral code: apenquotes. Just click here. Upon signing up using the referral code, you will get to enjoy being a Friend of StocksCafe and test out all features for free for two months!
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By the way, this is not a sponsored post by StocksCafe, although I would like to thank Dr Evan Koh (founder of StocksCafe) for letting me post the contents taken from StocksCafe here.
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