One week ago, I decided to sell my $VWCE (-1,2 %) shares, Why? Because I just decided to pursue what i do best and I like the most: holding a high-conviction portfolio with the companies that have the widest moats on earth, combined with network effects, high barries to entry, high switching costs and truly high ratios. Inspired by Dev Kantesaria and Joseph Carlson. And I aim to buy them cheap when they are surrounded by a bad narrative.
New additions:
$FICO (+3,42 %) A monopoly in credit scoring, heavily protected by regulations as Freddie Mac and Fannie Mae require a FICO Score to buy the mortage from the banks to then make it a MBS (Mortage-Backed Security). Today up +19% as they have eliminitaded the credit bureau intermediaries ($EFX (+7,21 %)
$TRU (+6,45 %)
$EXPN (+3,37 %) ), making its Score cheaper for banks, and aswell increasing their margins.
$INTU (+5,84 %) monopoly in medium and small companies accounting and consumer taxes payment in the USA and Canada. Astronomically high switching costs, and nobody wants to mess with their taxes or their accounting.
$DUOL psychology-based monopoly, built on network effects and habits. Largest language-learning database on earth, with hundreds of millions of MAU (Monthly Active Users) and more than 10million DAU (Daily Active Users), who do not wanna break their +1000days streak. Its subscription-based model is top-tier for fundamentals. Furthermore they are growing their TAM (Tota Addressable Market) with the addition of math, music and chess lessons., aswell as expanding the high-margin revenue stream form the DET (Duolingo English Test) worlwide.
I divide my investments in three types:
- Moat type 1 (just irreplaceable companies): ($ASML (-6,8 %) , $GOOG (-2,93 %) , $FICO (+3,42 %) ) from 70% to 80% of the portfolio
- Moat type 2(the best in their segment, hold most of the market share): ($INTU (+5,84 %) , $DUOL ) 20% to 25%
- $BTC (-0,13 %) (no explanation, just investing in the perfect monetary policy)
