Monday, December 4

The Flagship Tech Portfolio: December Update

Welcome back to this month's update of the Moby Flagship Technology Portfolio!

If you're familiar with this strategy please skip down to the section labeled, "Performance Overview".

If you're new to this portfolio strategy, its goal is to outperform the market by primarily investing in tech companies that are undervalued, while also taking on less risk!

We do this by building algorithms that use Artificial Intelligence (AI) to find companies with above-average earnings and revenue growth but at normal or undervalued valuations. 

That's so important right now because, profitability growth is almost even more important than pure revenue growth. Gone are the days when growth at all costs was an actual business strategy.

Nowadays, while growth is important, you need to grow "right". So that's why our algorithms have been looking for stocks that are growing but only at a reasonable price with growing & positive cash flows.

And that's why this strategy has done so well this year (more on this below). In the current period, our portfolio is up 2% while the market is down .7%.

We couldn't be more proud of how it's performed so far! For a more in-depth explanation of how this strategy works, just read this post!

Therefore, today we're going to cover:

  1. The portfolio's performance.

  2. The stocks that performed well and the stocks that didn't.

  3. This month's trading updates.

Performance Overview:

As you can see in the performance above, we were able to beat the index ($SPYG) once again, by finding 4 stocks that helped balance our risk-adjusted upside.

Looking closer, we see that the biggest contributor to our portfolio's performance was JBL. Something that really helped JBL over the last few months was the rumor that they would be joining the S&P 500.

However, once it was announced, the stock quickly sold off as the upside had already been priced in (a classic buy the rumor sell the news scenario). Past that short-term volatility, JBL has yet another solid quarter as they've grown in the right places while remaining under the radar.

However, as you can see below, the AI has trimmed JBL as they no longer meet our internal valuation criteria. We wouldn't be surprised to see them back in the shuffle down the road, but for now, they're outside of our valuation range.

Furthermore, we're trimming everything else besides GOOG as the relative price appreciation has also brought these names outside of our acceptable valuation ranges. While we still like these stocks individually, they no longer meet our portfolio's risk/reward standards.

With that small context out of the way, let's dive into this period's updates.

New Portfolio:

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