I sold 17% of my stake in Duolingo. I will be covering its annual Investor Day this weekend, and that review will be glowing. This company is thriving in every sense of the imagination and seeing upward profit revisions that keep the multiple reasonable. They are killing it and every single person on that team should be taking a bow.

So why the heck am I trimming this piece? I added to Duolingo at $150/share in early August to significantly raise my average cost base. In less than 2 months, those shares are pushing 100% profits. There’s a limit to how aggressively vertical I can watch any stock go before I feel compelled to take just a little bit off of the table. And while I’m not a technician, it’s hard to ignore the current gap between its 50-day moving average and the stock price being double where the stock normally finds a temporary peak. At some point, I have to think to myself: “Life is giving you delicious lemonade… so go drink just a little bit.”

Candidly, the trim would have probably been closer to 30%-40% of the holding if this company wasn’t executing so consistently masterfully. I think it would be very healthy for the stock to cool off a bit here and would welcome that as an opportunity to add these shares back. If not, it’s still a core holding. The funds are being held as cash equivalents in a 4.9% money market fund (SWVXX).