Tech Stocks Double Take

January 19, 2020    Portfolio Idea Tech

This month, I’m going to look at my favorite sector, namely high-tech companies. I love them so much, I’m going to give you two portfolio’s. One that’s picked by an algorithm and one I handpicked myself.

Picking stock myself? It’s crazy, but I’m still looking forward to the result.

Stock picking

As you may have read on the landing page of this site and from various footnotes, I’m not a fan of picking individual stocks at all. It’s an interesting hobby, but it’s extremely difficult to truly understand a company, let alone study multiple companies and make a proper comparison and selection.

On this site, I think the real deal is to use some kind of repeatable algorithm and select a small portfolio of companies to invest in.

Yet, every investor thinks he has an edge and knows how to pick the right companies. I think so too! In this case, I’ve worked in various tech companies for the last 20 years and I have followed tech from close by. So I’m feeling overconfident and think this may be a the one portfolio where I can do better.

Let’s see if I can prove myself wrong.

This Month’s Personal Choices

So here’s my personal list in no particular order. I have added a column to write down why I like the company so I’m able to make a better evaluation next year.

Symbol Name Current Price Reason I Picked It
NVDA Nvidia $245.57 They keep making the best and most popular graphical cards and finding more and more applications for them.
MTLS Materialise $19.01 3D printing is bound to go big soon. This is one of the smaller players in the niche. They focus on software and just pick whoever will be the hardware winner.
ESTC Elastic $71.51 Every site, every company needs to search their stuff, whatever it is. Many don’t want to hand over all their data to Google. Elastic is their best option.
AKA Akka €67.40 They have a very strong portfolio of solid “platform” software. Let’s see if they can sell it.
PRX Prosus €70.80 Naspers wanted to make it easier for you to invest in them, so here you have it. Invest together with them into a very diversified tech portfolio.
NTDOY Nintendo $49.01 Unlike Xbox and Playstation, Nintendo’s Switch appeals to a much broader audience. In spite of smaller budgets, they keep out-innovating the others (eg Nintento Labo)
TCEHY Tencent $51.17 Another mega-company that’s diversified all over the place. And on top of that, they are the best way for you to invest in the success of Fortnite. I know Prosus is a large shareholder of Tencent, so I may regret that I picked them both.
SHOP Shopify $448.51 Their no-nonsense, easy to use, e-shopping platform keeps appearing on more and more sites. Bright future ahead.
ZG Zillow $46.51 This is a candidate for turnaround of the year. Zillow is lightyears ahead of most other real estate sites. They haven’t been doing stellar lately, but I’m expecting a rebound any moment now.
SPCE Virgin Galactic $14.68 This is my moonshot pick. If they manage to pull of space travel, their stock price is going to rocket straight into space.

This Month’s Portfolio

And now for the real portfolio. I’m keeping it really simple this time:

  • Tech company on the NASDAQ
  • Best Greenblatt score.
Symbol Name Current price Greenblatt score (%)
SPRT, Inc. 1.31 USD 76
SSNT SilverSun Technologies Inc 3.27 USD 73
OIIM O2Micro International Ltd 1.62 USD 58
YY YY Inc 66.45 USD 56
JFIN Jiayin Group Inc. 5.31 USD 54
CHNG Change Healthcare Inc. 16.16 USD 53
BLIN Bridgeline Digital, Inc. 1.46 USD 53
MNDO Mind CTI Ltd 2.53 USD 51
CYBR CyberArk Software Ltd. 137.47 USD 51
NTES NetEase Inc 345.68 USD 38

There are a lot of unknown (to me) companies in there. This may be a good thing or a bad thing. Let’s wait and see.

My philosophy: If you want to invest and your goal is to try to beat the market, you need a system. You need a system that can decide for you what to buy, when to sell and not to panic when things go down. Everything starts with selecting stock. You should not just select random stock here and there based on whims or things you read. No, create a system that suites your style and follow it. These posts give you example of what such a stock selection could look like.

Disclaimer: Don't believe anything I say or write. Always do your own research before making any investment decisions.