Allow me to begin with a humble apology for the delayed release of this update. Regrettably, a mishap befell my poor laptop just as I started crafting this update. I unfortunately broke my laptop, then had to wait for Amazon to deliver my new one before I could continue writing up this update. If you ever got the impression that I was intelligent, just know that I am incredibly clumsy and broke my laptop in an incredibly foolish way. I was sitting up in my bed with my laptop open next to me. I felt a sudden urge to stretch out my arm and as I thrust out my hand, I somehow managed to punch directly into the screen, breaking it instantly. While I was understandably upset with myself, I couldn’t help but laugh at the absurdity of the situation.
Nevertheless, another quarter down, another quarter of unexpected market resilience. The market continued its triumphant march forward and economic data continues to come in strong. I must confess that I am awful at predicting the future. My yearlong forecast of a market downturn again looks premature. Thankfully, I possess the wisdom to refrain from acting act on such predictions, allowing my portfolio to grow and flourish. I just hold my stocks and let the businesses do the work. I invest in high quality companies that can weather any storm, executing in both favorable and challenging times.
Let’s quickly discuss the current investment landscape. Interest rates have continued their gradual rise, though the pace appears to have slowed down. As a result of these rate hikes as well as the swift gains seen in the market, finding enticing opportunities has become quite the challenge. Valuations have stretched and fixed income investments appear more enticing by the day. Fear not however, the market has a habit of rewarding those that exhibit the virtue of patience. Opportunities will present themselves, we just need to be prepared to act when they are revealed.
Now, on to a matter of far greater consequence and utmost importance: the showdown of tech billionaire titans, Elon Musk and Mark Zuckerberg! After months of fighting with words, they have decided to settle the feud with fists. They will brawl in a MMA cage match. Personally, I couldn’t be more excited for this matchup. Watching tech billionaires beat the crap out of one another is exactly my idea of a good time. As for my prediction, my money is on Zuckerberg. The guy is in remarkable physical shape, reportedly winning a Jiu Jitsu tournament. He even posted an elite time in a difficult athletic challenge called The Murph. I can’t guarantee the accury of his time or whether he performed each exercise with proper form, but his dedication to fitness is undeniable
A picture of him training with MMA legends should be all the proof we need. I can’t say the same for Musk, we have all seen the infamous boat photos. I’m hoping for his sake he has gotten into better shape, but I’ll wait for his shredded picture to drop for verification. As if the story needed any more juice added to the fire, Meta dropped an absolute bomb with their Twitter clone, Threads. A direct shot at Elon Musk and Twitter, one meant to cripple them in the midst of struggle. I have no idea if Threads will actually be successful, but with Meta’s resources behind them and Zuckerberg’s deep understanding of social media, I wouldn’t bet against them. I’ll be counting down the days to this showdown.
Q2 Performance
As of 7/1/2023, my 10K portfolio was worth $18,600.09. When I started on 8/19/18, the SPY had a price of $285.06 and my account started with $10,000. As of 7/1/2023 the SPY had a price of $443.26. In reality, the SPY has done even better due to dividends given out, so I have accounted for dividend reinvestment in the return calculation
| 10K Return(1) | SPY Return(2) | Difference(1-2) | |
| 2018(8/19-12/31) | (13.95) | (13.71) | (.24) |
| 2019 | 37.33 | 32.6 | 4.73 |
| 2020 | 21.22 | 17.59 | 3.63 |
| 2021 | 38.55 | 28.43 | 10.12 |
| 2022 | (27.25) | (18.65) | (8.60) |
| 2023(1/1-6/30) | 28.99 | 17.28 | 11.71 |
| Since Inception(8/19/18) | 86.00 | 68.85 | 17.15 |
| CAGR | 13.59 | 11.38 | 2.21 |
Q2 went remarkably well for my portfolio, almost unfathomably so. I have crushed the SPY since the new year, beating the ETF by 11.71%. I’m now up on them by 17.15% since inception and trending in the right direction. That of course means my portfolio is likely about to implode, so perhaps steer clear of my companies for a while. If you’re feeling frisky, you could even short my companies just to spite me. I wouldn’t do it if I were you, but someone has to be on the other side of the trade.
Most of my companies were up considerably this past quarter, with the only laggards being Dollar General, Etsy, and Ulta. Both DG and Etsy reported pretty weak quarters, so their falls make sense. I’ll hold my shares for now, but will need to see business recovery if I am to hold my shares indefinitely. Ulta’s business continues to dominate, I see no weakness whatsoever. If the stock falls further, it could soon present a strong entry point.
I actually made zero real transactions during the quarter. In fact, I have only made a single transaction in all of 2023 when I purchased a single share of INMD for $33.90(big spender over here.) This is actually how I prefer to run a portfolio. Assemble a group of high quality companies and then sit back and let them do the work. I would categorize myself as a lazy investor, or as Warren Buffett would say, I exhibit the characteristics of “lethargy bordering on sloth.” As long as the businesses remain strong, there is really nothing for me to do.
As always, I would like to thank you for taking the time to give this a read! Feel free to leave some comments or questions. Best way to reach me is on Twitter, follow me @TheGarpInvestor.
The GARP Investor 