Portfolio Update
I’m making a couple portfolio changes.
I decided to sell NFLX and NOW and use that capital to build up my ETF positions instead.
With NOW, I still like the business and its long-term prospects, but I’m not as comfortable with the valuation anymore. One metric I pay close attention to is market cap divided by annual revenue. I generally prefer that number to be under 10, and NOW is well above that level for me. At this valuation, I think there are better places for my money.
With NFLX, my concern is less about the business and more about the upside from here. I think the stock is now much closer to appropriately valued, which makes it harder for me to see the risk/reward being as attractive as it was when the valuation was lower.
This isn’t me becoming less bullish on technology or growth. If anything, I’m becoming more intentional about how I get that exposure.
I want to build a portfolio that is primarily ETFs with a handful of individual companies where I have the highest conviction.
The cash from NFLX and NOW will go toward building up:
📈 VOO — broad-market diversification
🚀 SPMO — exposure to stocks demonstrating strong momentum
⚡ AIPO — my long-term AI/data-center power infrastructure thesis
I still really like my core holdings, especially IGM, AMZN and SOFI, but I want ETFs to make up a much larger percentage of my portfolio going forward.
The goal isn’t to own more stocks. It’s to own a better portfolio — one where I can participate in the next major winners without having to correctly predict exactly which companies or sectors will produce them.
