I added to three existing names today. First, I boosted my Zscaler stake by 9% following yesterday’s earnings call. Last night’s review details why I made that decision. This is not a cheap name. It is, however, a best-in-class network security platform trading at a material discount to other platforms like Palo Alto and Cloudflare. I’m comfortable paying close to 50x free cash flow for this quality. I think it can easily maintain that multiple in the quarters ahead as profit continues to rapidly grow.

I also boosted my Coupang stake by 11%. Today, that nation’s president declared emergency Martial Law. This seems to be a reaction to political gridlock in that nation, as opposing parties struggled to agree on a new budget. Some think this is an overreaching power grab and some think this is a necessary maneuver for Korean stability. I’ll let you decide on that. Regardless, I do not see this having a drastic impact on that nation’s economic trajectory, spending patterns, e-commerce evolution or Coupang’s results. Political headlines like this (especially in a very stable, affluent, developed country like Korea) are often noisy buying opportunities. That’s how I see this, and I decided to continue building out my newer position today. There’s more room to add… I’ll be patient as always. EPS is expected to go from $0.08 this year to $0.51 next year, and then grow by 60% the year after.

For PayPal, I continue to be deeply impressed with the management team’s brisk turnaround. My last few earnings reviews highlight all of the progress they’re making. They’ve put Venmo, Braintree, Xoom and branded PayPal checkout all on great paths in about a year. At about 15x forward earnings, as well as rising estimates and a double-digit multi-year forward earnings CAGR, I think there’s a lot to like here. The risk/reward remains highly compelling in my view despite the stock’s recent success. That motivated me to add into what was admittedly modest multiple contraction. This company probably deserves to be more expensive than it is today.

Updated Holdings & Performance. A few caveats as always: