In episode 28, Albert and I compared Cloudflare and Fastly. Fastly was a 2020 model portfolio pick, and we’ve replaced that with Cloudflare in the 2021 model portfolio.
Having completed this extra piece of due diligence, I’m really happy that we’ve made the swap. Although they’re priced at a much richer valuation, it does appear that momentum is on Cloudflare’s side.
The one-pager highlights the key positive and negative points we see in Cloudflare as a potential investment, however, we’ve fairly deliberately not provided a buy/sell recommendation – as we say time and again, an investor needs to do their own due diligence. Albert and I have both decided that Cloudflare is right for our portfolios, but it may not be right for you – you really need to look at any investment in the context of your personal financial situation, planned holding period, risk tolerance, and broad understanding of the sector.
I did actually pull the trigger on another two 2021 model portfolio investments after recording this week’s Pod, and am now the proud owner of a 2% stake in Cloudflare (plus Twilio).
