Portfolio Update #2
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Performance
We want to remind you each update, although we are updating you on our performance every two weeks, we do not get excited or upset about short-term fluctuations. Our focus remains on long-term value creation. Please remember this especially when looking at your own portfolio and making investment decisions.
Over the past two weeks, our portfolio has seen a minor decrease. The overall return in September ended at 1.1%, with October starting at -1.3%. This brings our year-to-date return down to 14%.
Overall our annualised TWR now sits at 30.83%.
The primary drivers of this poor performance was RCI Hospitality Holdings RICK 0.00%↑, which fell from -2.19% to -12.72% as well as Nintendo (NTDOY), which fell from 7.97% to 5.16%. Nu Holdings NU 0.00%↑ also saw a large fall with our total return reducing from 99.27% to 76.38%. Evolution AB (EVVTY) and BAE Systems (BA.L) were also minorly down.
Positive contributors include Meta Platforms META 0.00%↑ , which continued its strong performance with an increase from 462.61% to 486.52%, and Alphabet GOOGL 0.00%↑ , which improved from 76.51% to 80.81%. PayPal Holdings PYPL 0.00%↑, remained relatively flat over the period.
The News
As always, we are hesitant to provide macro commentary as it would likely just be noise, and frankly, we're tired of hearing about it ourselves. Instead, we'll focus on company-specific news that may impact our holdings.
PayPal's New Privacy Policy: PayPal has also announced changes to its privacy policy, set to take effect on November 27, 20242. The new policy will allow automatic sharing of user data with third-party vendors unless users opt out. This move has raised concerns among privacy advocates, though users in California, North Dakota, and Vermont will be exempt from the default data-sharing rule.
Nintendo Game Announcements: Nintendo has announced several new games coming to the Switch in October 2024. Notable releases include Super Mario Party Jamboree on October 17th, featuring seven new and returning boards and over 110 minigames. Other upcoming titles include Yakuza Kiwami, SpongeBob SquarePants: The Cosmic Shake, and SONIC X SHADOW GENERATIONS.
Google for India: Google held its annual "Google for India" event on October 3, 2024, where it announced several new features and initiatives for the Indian market3. The event focused heavily on AI, including the expansion of Gemini AI features and support for more Indian languages.
Trades
The only changes over the past two weeks have been cash inflows, which include interest on cash, dividends from GOOGL 0.00%↑, META 0.00%↑ and RICK 0.00%↑ along with additional cash contributions. This brings the total cash allocation to 22.59%.
Statement of Assets
Cash
Share of Portfolio: 22.59%
Breakdown:
PayPal Holdings, Inc. (PYPL)
Share of Portfolio: 21.22%
Purchase Price: $63.05
Total Return: 21.92%
Investment Thesis:
![[FREE] PayPal (PYPL) Equity Research Report](https://substackcdn.com/image/fetch/w_140,h_140,c_fill,f_webp,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2ec95c38-51d6-4f98-a32f-f4bcfd42102c_2560x1920.jpeg)
Nintendo Co., Ltd. (NTDOY)
Share of Portfolio: 15.52%
Purchase Price: $12.41
Total Return: 5.16%
Investment Thesis:
![[FREE] Nintendo (NTDOY) Equity Research Report](https://substackcdn.com/image/fetch/w_140,h_140,c_fill,f_webp,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F85de3997-55a8-41ff-b579-f5aaa8bd1af6_400x400.jpeg)
Meta Platforms, Inc. (META)
Share of Portfolio: 11.02%
Purchase Price: $98.91
Total Return: 486.52%
Investment Thesis: Coming soon…
Evolution AB (EVVTY)
Share of Portfolio: 9.60%
Purchase Price: $102.31
Total Return: -6.62%
Investment Thesis:
![[FREE] Evolution AB (EVO.ST) Equity Research Report](https://substackcdn.com/image/fetch/w_140,h_140,c_fill,f_webp,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4563cd74-03c3-4c89-b5ee-f7047e980201_700x700.png)
Alphabet Inc. (GOOGL)
Share of Portfolio: 7.45%
Purchase Price: $91.32
Total Return: 80.81%
Investment Thesis: Coming soon…
BAE Systems plc (BA.L)
Share of Portfolio: 5.40%
Purchase Price: £12.70
Total Return: 2.60%
Investment Thesis: Coming this weekend!
RCI Hospitality Holdings, Inc. (RICK)
Share of Portfolio: 3.66%
Purchase Price: $47.42
Total Return: -12.72%
Investment Thesis: Coming soon…
Nu Holdings Ltd. (NU)
Share of Portfolio: 3.54%
Purchase Price: $7.38
Total Return: 76.38%
Investment Thesis:
![[FREE] Nu Holdings (NU) Equity Research Report](https://substackcdn.com/image/fetch/w_140,h_140,c_fill,f_webp,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fbf450a78-515a-4766-a7b9-f43ca6a09672_2135x2120.png)
We hope you found this valuable. Thank you once again for your continued support—we’re excited to bring you more updates soon!
The S.C. Team
Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute financial, investment, or other professional advice. The opinions expressed here are those of the author and do not necessarily reflect the views of Schwar Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The author may or may not hold positions in the stocks or other financial instruments mentioned. Always do your own research or consult with a qualified financial advisor before making any investment decisions.