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Rafael Bragança's avatar

I also bought Docusign at 2021 and kept DCA until recently when i finally sold my position at a very small profit. I bought because it was picked by TMF. I Still believe in the company, but there are (a lot) better oportunities out there...

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Wolf of Harcourt Street's avatar

I believe its best days are behind it. The fact that they have been exploring a sale suggests that the product would function better as a feature within another company rather than as a standalone entity.

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Chris's avatar

Excellent article.

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Wolf of Harcourt Street's avatar

Thanks a lot for the feedback 👍

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Stealth Learning's avatar

Thank you for your excellent article. I loved it. I also have $DOCU in my port.

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Wolf of Harcourt Street's avatar

Thank you for the feedback, much appreciated.

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Chris W's avatar

Thanks for sharing. How do you manage position sizing? Do you ever trim a bit when the valuation gets really stretched?

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MB's avatar

Great summary and appreciate you sharing. Out of interest, do you typically DCA into a stock over a set period - 6,9, 12mths? Separately, do you ever look at your success stories and check if they played out according to your thesis? I have had some winners which have performed well but for different reasons than why invested! I find this another useful exercise and a good way to refine my investing approach.

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Wolf of Harcourt Street's avatar

I make monthly cash contributions to my portfolio, allowing me to DCA into it. However, I don’t blindly DCA into individual stocks. Instead, I evaluate the best opportunities available at the time.

I monitor how each investment thesis plays out on a quarterly basis. It’s an interesting observation that, occasionally, companies take actions we hadn’t anticipated. This is often a sign of strong management and valuable optionality.

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Wolf of Harcourt Street's avatar

For the most part, I manage position sizing on the cost basis rather than the market value. Here’s a previous post that explains the logic:

https://www.thewolfofharcourtstreet.com/p/position-sizing-the-vital-secret

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Patrick Barber's avatar

Nice article. I think the same conclusion can be reached with ZM (and Slack if CRM hadn’t bought them), as initial Zoom adopters switch to Teams for cost savings. MSFT office dominance is so great it looks silly to retain both Zoom and Slack when Teams does the same thing. Our small company (<100 people) expects to save $20k+ next year converting.

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Wolf of Harcourt Street's avatar

Agreed - Zoom is almost a mirrored example, and I think this applies to many of those Covid-era darling stocks. One point I could have added is that Covid might have been one of the worst things to happen to DocuSign. The surge in demand for e-signatures attracted numerous competitors to the field who might not have entered otherwise. If Covid hadn’t happened, DocuSign could likely have had several more years to build a stronger, more defensible moat before competition caught on. But of course, that’s all hypothetical.

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Conor Mac's avatar

Great piece sir, thanks for putting together and for sharing.

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Wolf of Harcourt Street's avatar

Thanks a lot Conor, really appreciate the feedback.

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