a. Updated Performance vs. the S&P 500

Not a fun week. I am now performing neck and neck with the S&P 500 for 2025, as I've given back all of the 3% lead over the last 5 sessions. The compounded annual lead also fell by about a point (as you can see above), but remains well ahead of my decades-long goal. I do not expect to beat the S&P by 10%+ on an annual basis like I currently am. My goal is simply to materially outperform over the long haul. This is all part of things.

Index-level volatility still looks very mild, but when digging into various pockets of markets, fear has seemed to fully kick in. While things could easily get more hectic in the near-term, I'd like to use this chaos to slowly lean in. More rate cuts are coming; quantitative tightening is ending; government stimulus will ramp in 2026; 1.4M Americans will again get paychecks whenever the shutdown ends; valuations of the firms I'm looking at are compelling.

Important for me to fixate on data, ride the volatility waves and make sure I'm owning good companies at good prices. Along those lines, I did some shopping.

b. Portfolio Changes

I boosted my Cava stake by 10%, my On Holdings stake by 10%, my DraftKings stake by 10% and my Trade Desk by 10% as well. The earnings reviews I recently wrote for Cava and TTD spell out why I'm making these decisions and the DKNG review coming out in a few hours will as well. For On Holdings, I view this as the best growth story in apparel now trading at a GAAP EBIT growth multiple (ignoring this year's faster profit growth) of 0.7x. Last quarter's earnings review gets into my bullishness a bit more. Will have more to say about this name when I have time, but those reviews basically tell you how I feel.

As I discussed yesterday in the Discord, I made a very small deposit today, but it didn't cover the majority of these transactions. Most of it was funded with the existing cash position. Not much to add to the brokerage right now.

c. Updated Holdings

I scrolled down too much on the Schwab page when taking this screen shot. That cut off Google, which is my largest holding. The email screenshot is wrong, as it's missing that holding. The screenshot below is correct (can only update it on web).