Project $1M: Stunning April Due To Amazon, ServiceNow & Facebook

May 01, 2020 4:28 AM ETADBE, AMZN, BABA, CRM, META, MELI, NOW, PMCUF, SPY, V, VEEV, TEAM31 Comments

Summary

  • Project $1M delivered a strong April result, up nearly 15% for the month vs 13% for the S&P 500.
  • While the S&P 500 may continue to decline, I believe the Project $1M portfolio has already found its 'bear market low' in March.
  • Amazon, Facebook and ServiceNow were major contributors.
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April was a welcome reprieve for the Project $1M portfolio. After the large drubbings in February and March, April erased much of the losses of those last couple of months, enabling the portfolio to finish April firmly in the black on a year-to-date basis.

The Project $1M portfolio finished April up 15%, compared to 13% for the S&P 500 (SPY). This was easily the best month for Project $1M certainly for the last 12 months and likely since inception. No position was down for the month, with many such as Veeva (VEEV), Mercadolibre (MELI), ServiceNow (NOW), Promedicus (OTCPK:PMCUF), Facebook (FB) and Amazon (AMZN) up well over 20% for the month.

What was particularly interesting about the collapse and subsequent recovery was the speed on the way down and the speed on the way back up. The sharp down days in March featured multiple days of 7% plus index declines which were particularly painful. I have been mentally prepared for declines of over 20% for quite some time however the speed of the decline in March was like a punch to the gut. Contrary to what may appear to be the case, I felt the magnitude of those declines as much as the next person.

The recovery in the portfolio through April has been equally stunning and up to now, difficult to rationalize. However the recent results from businesses such as Facebook and ServiceNow in particular give me reason to expect that the low point of these declines, at least for the high-quality end of the spectrum, have likely been seen.

The speed of the recovery back up also goes to show you how difficult market timing can be. Those that went to cash after the worst of the declines are likely nursing losses from selling out too late and not buying

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This article was written by

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Strategies designed to unearth long-term, wealth creating machines.

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

Disclosure: I am/we are long GOOGL, V, FB, NOW, ADBE, MELI, BABA, TEAM, AMZN, VEEV, PMCUF, CRM, SPY. 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.

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