Portfolio Update December 5th Funny how I just did an update talking about this last night and now I finally acted on it. For 2 quarters now I've been dabbling with the idea of opening a $UBER position and making it a core position. I initially purchased a watcher position at 2% of the portfolio at $68 then sold at $73 a month later to allocate to $GOOGL when I decided this company isn't for me Ill save the full details for an hour long video I plan to come out with maybe next week or something like that. Long story short, the current price reflects unbelievably depressed growth assumptions and margins expectations. If $UBER traded at a 7% FCF yield in 2029, it would still provide low teens stock price CAGR for the next 5 years. In other words: The margin of safety is un-f*cking believable for such a high quality name. If you believe $UBER can maintain a 5% FCF yield (still lower valuation than the 4.2 ish percent it is at today) Then you're looking down the barrel of 20% stock CAGR until 2029. Not to mention I'm assuming moderate growth here, almost 1% increase in FCF margins and 1% buybacks (all of which are likely to be materially higher). Now if we have any amount of multiple expansion south of a 4% FCF yield, of forget about it! 😋📈 Anyways, $UBER is now 9% holding for me, I will look to diligently add to this position if it continues to slide or remain in this price range. I completely funded this purchase with the trim of $CRM. I lowered my total share count in $CRM by exactly 1/3rd since this morning. I think $UBER can roughly double $CRM's stock performance with pretty solid predictability in the coming 3-5 years. FYI: I still hold 22% $CRM in my portfolio this is not me losing confidence in that business which is my biggest $ winner ever. Simply a much better priced opportunity that I'm highly knowledgeable is right in front of me! Also decided to bump up $TMDX to 2%, <$70 on that stock is absurd too! Highly unlikely for me to buy more of that in the future though, I would like the CB to remain below 2% as I'm fine with that investment (in theory) going to zero Thank you for reading, follow me it costs you nothing!
