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Project $1M: February Brings New Highs

Mar. 04, 2019 11:46 AM ETAMZN, BABA, CSLLY, MELI, NNCSF, PMCUF5 Comments


  • February was a strong month for Project $1M, with the portfolio retaking all time highs.
  • Mercadolibre, Nanosonics, and Alibaba were all material contributors to performance in February.
  • Valuations are once again starting to appear stretched, and I expect a 10% pullback before the end of summer.

The steep correction of December 2018 now seems a distant memory. Project $1M made new all time highs in February as a result of renewed optimism on China and a swag of positive results from portfolio components.

Overall, the portfolio finished up some 4.96% for the month, marginally outperforming the performance of the S&P 500 which was up 3.82% for February.

My broader investment focus with Project $1M is the purchase and long term hold of a clutch of high growth, cash-generating businesses that are powered by secular tailwinds, are owner-aligned and managed, and generate strong returns on equity. The advantage of these forces should be to allow the selected businesses to grow under any economic conditions that may be experienced over the life of the Project $1M portfolio (a decade or more).

Markets may move the prices of Project $1M businesses around, here and there, depending on sentiment; however, I am focused on the long term returns on invested capital that my businesses can generate and the opportunity to deploy that invested capital at high rates of return over a long-term horizon. For those that are new to the Project, here are Part 1, Part 2 and Part 3 of the initial investments in the portfolio.

The overall objective of the portfolio is to turn an initial capital base of $275,000 that was initially deployed in November 2015 into $1,000,000 by November 2025. This will be done primarily through buying businesses and holding high quality businesses, helping returns compound, and minimizing tax and trading costs.

Project $1M ended February 2019 with a balance of close to $440,000. This meant that the portfolio retook the highs of $437,000 that was reached at the end of September 2018. It's not clear to me what the precise reasons for the remarkable, sharp recovery from the dark days of

This article was written by

Integrator profile picture

I am an investor who is focused on disruptive businesses that are transforming industries lead by visionary leaders with substantial skin in the game. I have spent nearly 20 years in a formal capacity in various investment banking and corporate advisory roles, having attained my MBA with a concentration in finance. This led me toward a path in Venture Capital and working with entrepreneurs building new technology businesses, and I have had the opportunity to not only invest in a number of amazing privately held businesses, but also play a meaningful role in growing several of these early stage enterprises as well. I am now focused on applying my lens of private market disruption and leveraging secular tail winds to the public markets. This was a journey which I started with my public Project $1M portfolio series and which I have deepened with my marketplace service, Sustainable Growth

Analyst’s Disclosure: I am/we are long ALL STOCKS MENTIONED. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (5)

Integrator, Project $1m is a great tool for investors to learn from your wins & losses. Thanks for sharing them. I do not see a cash account. Are you 100% invested 100% of the time? Also do you use options to protect against a bear market or avoid the premium costs and take your lumps?
Integrator profile picture
mkw149, yes, I am generally fully invested. At this time, I am not investing anything new in the market, and therefore building up cash.
I don't use options, I effectively self hedge myself. To be successful long term, you need to embrace volatlity to some extent and buy when prices are in decline, hence I will aim to redeploy cash when we have market falls of 20% or greater. Till then, I will build up my cash reserves.
Nice and inspiring!
Investing Education profile picture
Hey great work! I started a youtube channel called Investing Education partly inspired by ur series. The goal is to beat the market and index funds. I also compare the performance of my real money portfolio to other public portfolios every month. YTD it is up 13% but pales in comparison to ur 20%. I would like to get in touch with u
Integrator profile picture
Thanks, I appreciate the sentiment. Feel free to DM me if there's anything specific I can help with
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