As the review will lay out later today, the Shopify quarter was very good (Uber was fine too). There’s far more detail coming in that article, but I wanted to give an early view of how strong these headline numbers were:

Demand and margin trends both look fantastic (GPM weakness is because payment products keep growing so nicely) and the company is firing on all cylinders. At the same time, even following upward profit revisions, the cash flow multiple has still moved from 50x when we were adding in April to nearly 85x today. That has pushed the forward PEG from 2x to north of 3x. This is a special company with an elite team and a massive runway that deserves a premium. But? That doesn’t mean I can’t lock in 200%+ profits as that premium is more fully rewarded and risk/reward moderately deteriorates. As I have done many times in the past for this name, I will keep trimming into excess multiple expansion and keep adding into excess multiple contraction as those opportunities surface. And as Shopify continues to masterfully perform, I will do that while maintaining a core position in the name. Another excellent quarter.

With that said, based on valuation and valuation alone, I trimmed 9% of the position this morning. It remains a top 10 holding and a high conviction name, which is why I’m still willing to own a sizable chunk at an admittedly lofty valuation.

Aside from this, I also boosted my Coupang stake by 10%. The review from last night explains exactly why that happened. The price got to where I wanted to add more shares… so I added more shares. Pleased with their quarter.

The charts below are the same. The primary source is just hard to read.

Performance since inception:

Year-to-Date Performance: