No. of Recommendations: 45
Saul, at the current price, would you tell someone to create a position with Coupa or at its current levels to hold off for a dip in price?

I'm not Saul but I would love to play him on TV...but David Gardner would say a couple things regarding this inquiry and I paraphrase:

- Be more comfortable adding to winners and letting winners run and be more inclined to buy near the 52-week high vs. the 52-week low,

- [From a podcast in '19]; dips buy on the dips....don't be a dip:

Regarding COUP; I opened a starter position in March '18 at $44.09.

Between March 02, 2018 and January 13, 2020 I added at the following times at the following price points:

03/02/18 $44.09
04/26/18 $48.53
05/14/18 $54.41
07/19/18 $65.55
12/17/18 $60.83
02/01/19 $89.63
06/03/19 $101.81
06/07/19 $120.55
08/07/19 $133.47
01/13/20 $174.10

With the exception of the Dec. '18 pullback; I just added to the winner and let the winner run. Each entry point, with the exception of Dec. '18 was at a higher price than the last.

I stated in previous emails that I have a large portfolio (60 companies); however, with the "add to the winners" philosophy, I end up with a portfolio where:

- The 30 largest positions in the portfolio account for 69.69% of assets and 81.61% of the gain,
- The lower tier (30 smaller positions) account for 30% of the assets and 20% of the gain.

Its almost deductively valid that I should just sell off the smaller 30 positions and roll that into my 10 highest conviction positions for now. With the idea that I too would like to get to a more concentrated portfolio with the caveat that I don't think that would ever be as concentrated as 8-12 companies....maybe more like 20 for me.

Print the post  


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.