Recent Buy – ADYEN

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A quick update on a recent buy in my portfolio.

I initiated a new starter position in Adyen NV (ADYEN.AS) (ADYYF). I bought the OTC ticker ADYYF @ $1,076.48. Adyen is a high quality, high growth payment solutions company based in Netherlands. Last few weeks I’ve become very interested in learning about the fintech space and Adyen stands out as a great company that has grown a lot since it was founded in 2006, but still growing at a remarkable rate (top line growth rate expected around 30%) as the TAM is huge. Some quick highlights that I like about Adyen:

  • Founder-led by Pieter van der Does, a great leader
  • Timeline: Founded in 2006; has been profitable since 2011; went public in 2018
  • Customers are merchants. Won high profile global leaders early in life such as Facebook, Microsoft, Booking, eBay, Spotify, Uber, KLM etc. (ICONIQ, Mark Zukerberg’s investment arm, was an early investor when co was still private)
  • Global omnichannel processing: global availability & can process almost every currency.
  • Develops a modern full stack and maintains full control to make payment processing seamless & minimize failures. Does not plan on buying other companies and dealing with problems on integrating different systems.
  • Pace of innovation – new software release every week
  • Q1 2020 financials stand at: Processed vol of €67B (+38% YoY), Net Revenue of €135M (34% YoY), EBITDA €63M (47% margin & +16% YoY), FCF conversion 93%.

I have been capturing data about Adyen in this Twitter thread:

Full Disclosure: Long ADYYF. Our full list of holdings is available here.

3 Recent Buys – GOOGL, FB, BABA

A quick update on recent buys in my portfolio. A lot of high profile investors are coming out of the woodworks to warn that the stock market is overvalued, but I’ve continued investing over the week.

  • First purchase: I added to my position in Alphabet Inc (GOOGL) @ $1,345.00. Alphabet has shown a lot of resilience with the ad market facing headwinds, thanks to the great balance sheet & continued buybacks putting a floor on the stock price.
  • Second purchase: I initiated a new position in Facebook Inc (FB) @ $203.00. I missed out on buying FB when it was trading around $170 & missed it by $1 and the stock ran away from me. Like GOOGL, FB is facing some headwinds thanks to the recession & everyone cutting their ad budgets. I believe FB (like GOOGL) provides a lot of optionality thanks to the innovation on a fronts such as AI, AR/VR, Libra/payments etc.
  • Third purchase: I initiated a new position in Alibaba Group Holding Ltd (BABA) @ $196.96. Alibaba is a behemoth in the e-commerce space and provides plenty of exposure to the Asian market. In addition to the e-commerce, BABA provides good growth opportunities in fintech space (via their stake in Ant Financial), cloud offerings, entertainment (streaming services), and lots of other strategic initiatives.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long BABA, FB, GOOGL. Our full list of holdings is available here.

3 Recent Buys – AYX, ICE, TWLO

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A quick update on recent buys in my portfolio. As mentioned in the Outlook post, after a lot of sales in March, I have decided to start deploying more capital into the markets as I don’t like to sit on a lot of cash on the sidelines. In this iteration, all two of the three companies are new to my portfolio and one is a re-initiation.

  • First purchase: I re-initiated my position in Twilio Inc (TWLO) @ $115.43. TWLO is a fast growing SaaS company that I had a position in the past. I am still bullish on the long term for this company even though we may see some bumps along the road as we go through this recession. The revenue growth is slowing for this wide moat company & current expectations are approx 25% going forward.
  • Second purchase: I initiated a position in another SaaS company: Alteryx Inc (AYX) @ $112.49. Alteryx makes business critical end-to-end data analytics software. Another wide moat company that has been growing well and is expected to grow revenue by approx 30% going forward.
  • Third purchase: I initiated a position in Intercontinental Exchange (ICE) @ $91.93. ICE owns 12 regulated exchanges (including NYSE) and 6 clearing houses. Market operators like ICE have a very wide moat and the future continues to be brighter than ever.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long AYX, ICE, and TWLO. Our full list of holdings is available here.

2 Recent Buys – SPGI, MELI

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A quick update on a couple of recent buys in my portfolio. After a lot of sales in March, I have decided to start wading back into the markets as the volatility subsides.

  • First purchase: I continued adding more to my position in S&P Global Inc (SPGI) @ $280.70. I am starting to get close to a full position in this company, but may go for one more tranche if I see some weakness in coming weeks/months.
  • Second purchase: I initiated a new position in MercadoLibre Inc (MELI) @ $570.00. MercadoLibre is a fast growing e-commerce company focused on the Latin American market. It’s a company that I had heard about but only recently started researching. I have started a Twitter thread where I capture details about the company if you are interested in following along.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long SPGI, MELI. Our full list of holdings is available here.

3 Recent Buys – BAM, BIP, EQX

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A quick update on recent buys in my portfolio. After a lot of sales in March, I have decided to start wading back into the markets as the volatility subsides.

  • First & second purchases: I re-initiated my position in Brookfield Asset Management (BAM.A.TO) @ $45.00 and Brookfield Infrastructure Partners LP (BIP.UN.TO) @ $55.00. Split-adjusted, I didn’t really time the market as well as I hoped, and just got them for a few percentage points lower than sale price; but I am starting off with a smaller position than what I had before the selloff. I will be looking to start building this position back up in coming weeks/months.
  • Third purchase: I added to my position in Equinox Gold (EQX.TO) @ $10.00. Equinox should see significant revenue growth in 2020 & 2021 and with it tremendous FCF depending on the spot price. This was an easy decision to add at this price point.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long BAM.A.TO, BIP.UN.TO, EQX.TO. Our full list of holdings is available here.