Skip to main content
No. of Recommendations: 8
Returns from June 1 thru June 28.
WCLD (an ETF) - 6.81%
Efficiency 9 - 7.02%
Tech_Growers - 16.96%
Saul (Saul’s Board) - 42.3%

Note:
1) Saul reported YTD for June (from 6/1 to 6/27) as 115.9%. His YTD in May was 73.6%. I subtracted 115.9 from 73.6 to get performance for the month of June as 42.3%

2) Except for Saul’s numbers, the gain calculations for WCLD, Efficiency 9 and Tech_Growers came from Foliofn’s internal performance calculator.

3) Saul’s results for the month are usually posted during the last weekend of the month. So I use his “month” of June 1 thru June 27 as the time span for returns for each of the above.

Returns for month of May:
WCLD (an ETF) - 28.65%
Efficiency 9 - 32.85%
Tech_Growers - 41.82%
Saul (Saul’s Board) - 40%

In December of last year Earslookin introduced us to Bessemer Venture Partners list of SAAS stocks called EMCLOUD. The ETF WCLD is based on the EMCLOUD index.
https://www.bvp.com/bvp-nasdaq-emerging-cloud-index

Among the data provided was the “efficiency” metric. Subsequent posts on this board discussed the "efficiency" metric, a variation of the “Rule of 40,” as a method of evaluating SAAS stocks. The question I had is how might results from using the relatively carefree tool of “efficiency” differ from results achieved by the index or Saul’s board.

My approach, though arbitrary, is rule-based. At the beginning of April 1, 2020, and each month thereafter, I have sorted the Emcloud list of stocks under “efficiency” in descending order and then selected the top nine.

I use a token real-money portfolio in my Foliofn account in which fractional shares are permitted. I use an equal amount of money for each stock. Although I will not rebalance any stock as long as it is held, I will sell stocks that fall out of the top 9 at the beginning of the month and purchase replacement stocks for 1/9th of the portfolio value. I plan to employ this method for a few months. Then, depending on comparative returns, I will determine if the strategy should continue for me.

June’s “Efficiency 9” stocks, in descending order of efficiency score, were:
Datadog, Zoom, Crowdstrike, Veeva, Altassian, Coupe, SeviceNow, Twilo and Qualys

July’s “Efficiency 9” stocks, in descending order of efficiency score, are the same as last month.

In another cloud investing venture, since May I have employed Tech_Growers from the Mechanical Investing board for a real money portfolio. Tech_Growers is the result of a sophisticated quant-method developed by Rdutt for selecting mostly SAAS stocks. It is discussed in the thread starting at post #44 on this board. It is relatively “carefree” to use if you don’t mind what so far has only been one or two monthly trades. Simply select the top five stocks from the most recent SI Rankings posted by lohill on the MI board and hold for a month. For the following month change stocks as needed and do it again.

Conclusions
The more or less Carefree Cloud methods had great results by most any investment standards. but were little competition for Saul during the month of June.

five
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.