We will soon be working on the “People” section of Tykr which will allow you to follow investors like me and when we make changes to our portfolio’s, you will receive an email alert.
For now, I’ve listed my portfolio (Seen below) on our public-facing website. Rest assured, the stocks and the percentages are up-to-date. Keep in mind, I’m a “net buyer” which means I’m buying more than selling. In other words, I’m buying more shares every month.
Most of the stocks below are On Sale in Tykr but if I invest in any stocks that are not On Sale, I make sure I complete a 4M analysis which means I look past the numbers and look at the business. See the 4M article to learn more.
1- PayPal (PYPL) – Allocation = 23%
PayPal has been classified as a “super app” and here’s why. BNPL is growing extremely fast and they are capitalized on it. They are in 200 countries/territories. By comparison, Stripe is in 46, Adyen is in 34, and Square is in 130. They’ve added crypto trading. They own Venmo and Amazon will start using Venmo in 2022. They are exploring the ability to buy and sell stocks. This could be a massive game-changer because of the global footprint.
2- Microsoft (MSFT) – Allocation = 19%
I consider Microsoft to be the perfect business model. They have an enterprise B2B PaaS (Platform as a Service) product (Azure), a B2B SaaS that’s installed on almost every PC (Microsoft Office), an operating system installed on almost every PC (Windows), they make money from video games (Xbox), they sell hardware products (Surface), and they generate revenue from advertising (LinkedIn). Microsoft is a powerhouse that isn’t going away anytime soon.
3- Apple (AAPL) – Allocation = 12%
Apple has an impressive “brand moat” meaning most people know who Apple is and know they produce high-quality products. Believe it or not, I’m an Android user and I still recommend Apple products. Apple also has a massive “cash moat” as they have $200B in cash on hand. This is important because companies with a lot of cash can withstand economic downturns easier and they can spend more on R&D (Research and Development). In other words, Apple is able to create amazing products. Apple also has multiple low-barrier-to-entry revenue streams including iPhones, subscription services (iTunes, Apple TV+, iCloud, Apple Fitness+), Mac computers, Wearables, and iPads. If I invest in a growth stock, I want to make sure they have multiple revenue streams especially low-barrier-to-entry products and services. Growth stocks with high-cost products or services are riskier. Also note, Apple has split its stock seven times since the 1980s. This stock is highly likely to keep growing (and splitting).
4- Fortinet (FTNT) – Allocation = 11%
I consider Enterprise SaaS to be the “top of the food chain” when it comes to business models. Enterprise SaaS can also be perceived as very boring, which is a good thing. Enterprise means you serve large businesses. Annual contracts can range from hundreds of thousands up to millions of dollars for just one customer and contracts are usually signed for 3 – 10 years. Fortinet’s customers include Sprint, The Salvation Army, Edward Jones, and Siemens. Enterprise SaaS is highly scalable and lucrative. Fortinet is a cybersecurity Enterprise SaaS and cybersecurity is also in high demand and will always be in high demand as long as the internet exists. If a company were to let their cybersecurity licenses lapse, the entire business could be shut down. I’ve seen this happen with my own eyes and it’s extremely expensive! Pay close attention to cybersecurity.
5- Palantir (PLTR) – Allocation = 9%
Palantir is a data analytics enterprise SaaS company that serves both large corporations and government organizations. As mentioned with some of the other enterprise SaaS businesses above (FTNT, PCTY, and CYBER) enterprise contracts can last 3 – 10 years. Some of their customers include Morgan Stanley, Merck, Airbus, Fiat Chrysler. Palantir has software that analyses data to drive smart business and organizational decisions faster. Companies and organizations that make wise decisions faster can get an edge ahead of the competition. Data analytics is an essential need for every business and organization and Palantir is fulfilling that need. Although the stock is a new IPO and most likely classified as Overpriced, I’ve applied the 4 M’s as taught by the TYKR onboarding sequence. The Mean, Moat, and Management pass my tests.
6- Alphabet (GOOGL) – Allocation = 10%
Google generates revenue with various revenue streams including Chrome, Adwords, Maps, Play, Search, Youtube, and Google Cloud. All of which are highly scalable business models with very little friction within the sales process. In other words, a digital or physical product isn’t sold. This is similar to the low friction model you see with PayPal.
7- Block (SQ) – Allocation = 6%
Square generates revenue through transaction fees, a B2B (Business to Business) SaaS, and Hardware. Square is currently available in 5 countries (US, Canada, Japan, Australia, and the UK). Square is also one of the top-rated apps for the War on Cash. I like that Square has a balance in revenue streams, especially between the transaction fees and the B2B SaaS. Both are highly profitable business models in itself.
8- Advanced Micro Devices (AMD) – Allocation = 7%
The semiconductor industry is highly competitive but the two strongest players in the market are AMD and NVDA. I like AMD because they not only run a financially strong enterprise but they also have long-lasting big-name customers including Google and Tesla. There is currently a shortage of semiconductor chips in the automotive industry and the chip makers who can secure the top customers will see share prices increase. Overall, AMD has a solid foothold in the market.
9- Paylocity (PCTY) – Allocation = 2%
Here we go, another Enterprise SaaS. In this circumstance, it’s a human resources platform. Paylocity manages payroll, workforce management, benefits, data insights, and more. As long as companies have employees (which they always will) Paylocity will be around. Again, annual contracts can range from hundreds of thousands up to millions of dollars for just one customer and contracts are usually signed for 3 – 10 years.
10- Atlassian (TEAM) – Allocation = 1%
Atlassian creates products for software engineers such as Jira and Trello. As long as companies hire software engineers, they will need products from Atlassian. Jira and Trello are considered the most popular software engineering and IT project management tools in the world. Every large company I’ve worked for uses Atlassian products. I consider Atlassian to be a “Pick-and-Shovel” play. Back in the 1850s, Americans were destined to get rich from the “gold rush”. This is similar to people trying to get rich from bitcoin or marijuana stocks. The people who did get rich back then were not the gold miners, it was the people selling tools to gold miners. Atlassian is that same type of product. Atlassian is a tool for software engineering.