I agree with the rationale. Will you use the funds for a new stock? If so I recommend Palantir, trading for P/S of just 100 its a bargain of the century 🤣.
No immediate plans to deploy the cash, happy to sit on it with the portfolio at an all time high value. I have not studied Palantir so I have no views on the stock.
I was very patient with the thesis and gave it plenty of time, so I was happy to take the money off the table without having lost anything. The stock may do well from here, but for that to happen, revenue needs to meaningfully accelerate which is something I do not expect with a high degree of certainty.
Great recap Wolf. We're on the same page. Unfortunately, even great companies can disappoint if the entry price isn’t right, as we both experienced (we exited Airbnb in January 2025).
While it's a strong cash flow generator, we favor Booking over Airbnb due to stronger recent execution. When we first invested back in 2022, Booking also appeared significantly undervalued.
That said, we still view Airbnb as a solid company with long-term potential, but at present, we see more attractive opportunities elsewhere.
Thanks, guys. I think this is a good example of how a great company doesn't always translate to a great stock. The cash flow is strong, but due to the high SBC, returns have largely accrued to insiders rather than shareholders over the past four years.
Could this change in the future? Absolutely. But for now, I don't see the odds in my favor. I've been very patient with this thesis, but with my portfolio at an all-time high, I felt it was the perfect time to exit ABNB and raise some cash.
I agree with the rationale. Will you use the funds for a new stock? If so I recommend Palantir, trading for P/S of just 100 its a bargain of the century 🤣.
No immediate plans to deploy the cash, happy to sit on it with the portfolio at an all time high value. I have not studied Palantir so I have no views on the stock.
It's never an easy decision, but it's better to cut now than regret not having done so later.
I was very patient with the thesis and gave it plenty of time, so I was happy to take the money off the table without having lost anything. The stock may do well from here, but for that to happen, revenue needs to meaningfully accelerate which is something I do not expect with a high degree of certainty.
Great recap Wolf. We're on the same page. Unfortunately, even great companies can disappoint if the entry price isn’t right, as we both experienced (we exited Airbnb in January 2025).
While it's a strong cash flow generator, we favor Booking over Airbnb due to stronger recent execution. When we first invested back in 2022, Booking also appeared significantly undervalued.
That said, we still view Airbnb as a solid company with long-term potential, but at present, we see more attractive opportunities elsewhere.
Thanks, guys. I think this is a good example of how a great company doesn't always translate to a great stock. The cash flow is strong, but due to the high SBC, returns have largely accrued to insiders rather than shareholders over the past four years.
Could this change in the future? Absolutely. But for now, I don't see the odds in my favor. I've been very patient with this thesis, but with my portfolio at an all-time high, I felt it was the perfect time to exit ABNB and raise some cash.
Totally agree. Chesky might not take a salary but we’re pretty sure selling shares helps cover his expenses.
And yes, the timing was pretty good after the run over the past month.