Week in Review -- November 13, 2020


Happy Friday, and welcome to all our new subscribers! If you’re reading this but haven’t subscribed, please consider joining our curious and thoughtful corner of the internet here!

What a weird and wacky week, with (potentially) great buying opportunities! 

A lot of names were at or near all-time highs last Friday. Then, on Monday, they started going the wrong direction!

But in truth, I kind of like it.

Because it means shopping time!

As our homeboy Warren B says, “be fearful when others are greedy, and greedy when others are fearful.”

Let’s get into it.

In the following chart you’ll see what I was looking at on Monday:

  1. A lot of my names dropping from Friday’s highs

  2. Taking out the checkbook to do some shopping

  3. How they’ve been performing since (and in total)

*I purchased VEEV and SE on Monday and again on Tuesday. “Price paid Monday” is the average cost of both transactions for each company.
*BABA was only purchased on Tuesday.
  • $PINS

    The appetite for “wholesome” social media isn’t going anywhere. And Pinterest’s recent partnership with Shopify is only scratching the surface of what Pinterest can mean for e-commerce. 

  • $MELI

    I published a Deep Dive on MercadoLibre in September. My reservations are unchanged, but the mini sell-off felt like a good opportunity to add to the position.

  • $ETSY

    Etsy is new position for me. It deserves a closer look, but if your wife says it’s a good idea, it’s probably a good idea.

“Beijing on Tuesday unveiled regulations to root out monopolistic practices in the internet industry, seeking to curtail the growing influence of corporations like Alibaba Group Holding Ltd. and Tencent Holdings Ltd…

While Xi’s government has been steadily tightening its grip on the world’s second-largest economy, it has until recently taken a relatively hands off approach toward businesses that dominate China’s burgeoning internet, e-commerce and digital finance industries. Authorities are concerned the companies have become too powerful, according to Ma Chen, a Beijing-based partner at Han Kun Law Offices.

I posed the question on Twitter.

Responses were mixed. On the one hand, regulation is certainly not a new concept. Stocks from the U.S., Europe and around the world are subject to government regulations. Why should China be any different? On the other hand, China is clearly less transparent and less predictable. Will be interesting to watch.

While a lot of these high growth names were getting squadooshed on Monday, other names that had been laggards had a nice little pop. I thought it was a good time to say goodbye to two in particular, Disney and Republic Services.

Thanks to everyone for giving this weekly review a read. Please hit the like button/comment/share so I know which posts you enjoy! ~MazwoodCap

And if you’re new here, don’t be shy! We’d love to have you subscribe to Musings by Mazwood.

We aim to be respectful of your inbox and post portfolio updates, market commentaries, company deep dives, and more. We hope you’ll join us!