Portfolio Update
Tech stocks are struggling and portfolios are down, but we aren't worried...
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I quickly wanted to dive into our current investment practices and explain why we are not worried about the current market. In the Intelligent Investor, Ben Graham makes the following statement:
“What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.”
This stratgey, or framework, is the exact one that is central to the kind of investing I do. I have value-based stock investment strategies, and thematic investment frameworks that are the sole guides of my stock picks.
I don’t pay attention to modern media, listen to the folks on twitter, nor do I follow many other publications to search for stock picks.
I do that intentionally.
It keeps me from getting my emotions tangled up with my investing framework. That means a lot of things, but most importantly, it means that in moments like these when the NASDAQ experiences drops of more than 15% or 20% at a time — and our portfolios do the same — I can remain confident and unwavering in the investments we own.
Drops like this do not worry me.
Now, with that being said, I do pay attention to caplital flows and I have been watching the current quarter filings from all of the 13F and hedge fund folks on InsiderEdges.com. They are showing that approximately 15% of all 13F filers have made their reports to the SEC for Q2 of 2026.
Of those currently filed reports, it seems that institutional flows are favoring the following sectors.
I think this is clear to see that while the investment in the technology sector isn’t slowing down, there is some hedging happening with the investments we are seeing in consumer staples and communication services.
Deeper analysis of the individual industries within these sectors show us where exactly the flow ae going for these top investors.
Money is slowing directly into the semiconductors and hardware — places where we are heavily invested with stocks like MPWR, ANET, and NVMI. So, while the media continues to fear monger about the AI race, institutional flows prove invesmtnet in the AI race is not done.
Consumer staples show the following industies experiencing deep investment. These are places where I think we could find some opportunities as it seems investors brace for a potential downturn.
And finally in the communication services section we see the following industries experiencing heavy investment…
The internet content and information industry is the one that looks the most attractive to me. Yes, the industry includes Google and Meta, but there are other names that seem very attractive.
Stocks like SPOT, DASH, and RDDT are down over 30% from their highs. Seeing these heavy institutional flows signals potential strength in these companies.
At the end of the day, I am not stressed out about our positining, I am not worried about the market, and I think we are seeing continued investment into the stocks that we hold.
Please see the following chart as well for the current macro positioning of bonds and the market as a whole.
- ¢, Founder of The Simple Side