a. Updated Performance

b. Portfolio Changes

I boosted my ServiceNow stake by 18%. I continue to be highly confident in the company and happy to take advantage of incremental multiple compression as I build out this position. This trades for a 2026 FCF multiple around 28x and a growth multiple around 1.33x. For a world-class enterprise software firm that I expect to grow comfortably above 15% for a long time, that's a price I want to take advantage of. I consider the position a little bit more than half full at this point.

Software is weak today overall, but there's an SEC filing incrementally weighing on NOW shares. In it, CEO Bill McDermott's employment contract was amended. He extended through 2030 (great news), but can now shift to co-CEO or executive chairman during that period. I think very highly of McDermott, but I also think very highly of President, Chief Product Officer, and Chief Operating Officer Amit Zavery. He is brilliant, highly capable, proven, and ready to take this company over whenever needed. To me, he is CEO in waiting and that will be a wonderfully smooth leadership transition.

Separately, I continue to be very tempted to cut the rest of my PayPal stake, but I think I'm giving them one more quarter. I reserve the right to change my mind & cut it sooner, but no plans to do so at this point. I want to see them show signs of accelerating checkout modernization and stabilizing that vital business. That hasn't happened yet and I'm quickly losing faith that they can figure things out.

c. Portfolio Management Snapshot

*the order of the names in these lists below is meaningless

My holdings that are performing & compellingly priced where I'd accumulate into modest multiple contraction:

• Amazon
• Meta
• Mercado Libre
• Zscaler
• DraftKings
• Starbucks
• Cava
• On
• ServiceNow
• Nu
• Coupang.
• Alphabet is in this cohort too, but I'd likely be a little more patient with adding. It's already a massive piece of the portfolio.

My holdings that are performing & expensive where I'd accumulate into meaningful multiple contraction:

• SoFi
• Lemonade
• Shopify

I like what I own in Uber right now. I want it to be sized right where it is. That balances my optimism in their AV positioning with my respect for all the uncertainty and how rapidly things are evolving.

My hot seat – holdings that are NOT performing & need to do better if I'm going to stick around:

• PayPal
• The Trade Desk

Watch List:

• CrowdStrike (would love to re-enter at some point)
• Sea Limited
• Axon

"If you were starting a portfolio today, what would it look like?"

• 8% Alphabet
• 8% Amazon
• 8% Meta
• 8% Mercado Libre
• 6% Zscaler
• 6% ServiceNow
• 5% Nu
• 5% Coupang
• 5% DraftKings
• 5% Starbucks
• 5% Lemonade
• 5% SoFi
• 4% Cava
• 4% On
• 4% Uber
• 4% Shopify
• 3% Rubrik
• 2% Trade Desk
• 5% cash

d. Updated Holdings