I boosted my PayPal stake by 8% amid more multiple contraction. I also decided to start a small position in Cava. I’ve admired the company since the IPO and haven’t been able to own shares due to the forward multiple. I think it now trades for somewhere around 55x forward EBITDA, and I view this as the highest quality growth story in quick service restaurants. At just a 1.4% position, I have plenty of room to average in if the turbulence continues. And candidly, I view that as somewhat likely. It remains expensive. Still, considering my deep respect for the company, I am willing to own my first piece at this price tag. I’d love to keep adding if Mr. Market’s latest fit continues.

To get a better sense of why I like this company so much:

This purchase was funded by a small deposit. Here is my updated portfolio & performance:

Based on today’s ugly price action as I send this piece, my compounded annual lead vs. the S&P 500 is just below 13% instead of 13.3%. That won’t update on Schwab until tonight.