May 2026 - Portfolio Update
Another strong month - 16% return in 2 months
Welcome to the May 2026 portfolio update.
After the portfolio gained 9.9% in April, positive returns continued this month with a 5.6% gain.
While performance in April was largely driven by Amazon’s surge, the stock took a breather this month, returning just 2.7%. Instead, other core holdings like Sanlorenzo, Topicus, Basic-Fit, and Adobe posted strong gains.
Software stocks, which my portfolio has significant exposure to, surged near the end of the month and continued surging into June. This came as a result of strong earnings updates from firms like Snowflake (up 102% in one month!), Okta, and Salesforce, as well as ServiceNow following a bullish Financial Analyst Day.
Since about 32% of my portfolio now consists of software stocks, it has been a good month, and June also looks set to be a strong one. So far, there is still little to no evidence that high-moat software companies—firms with mission-critical workflow integration, ecosystems, systems of record, and so on—are being disrupted by AI. The market seems to finally be realizing that these types of software companies are beneficiaries of AI, not victims of AI.
Don’t believe me, believe people like Nvidia CEO Jensen Huang, who says it’s “an incredible time to be a software company.” If the biggest AI leaders in the world are bullish on software in an AI-first world, I don’t think there’s much reason for panic.
Update: as I write this, it’s now a day later (June 2nd), and software is plummeting once again after recent gains. Don’t let prices dictate your sentiment. Nothing has changed relative to a few days ago. Earnings remain real and strong, and leaders like Huang remain bullish. I remain confident in my software holdings.
Besides software, Sanlorenzo published earnings which were well-received (expect an earnings update this month), and Basic-Fit rebounded after a weaker month in April.
In the coming weeks, I’ll publish my thoughts on recent earnings from Salesforce, Copart, and Adobe (reporting next week). I already shared posts on Topicus and Airbnb.
Both companies are executing well. Airbnb is accelerating growth across the board and has introduced new products, including hotels, groceries, airport pickups, car rentals, and more. Chesky’s vision is slowly unfolding.
Topicus is business as usual. Shares remain down significantly, but the underlying business hasn’t changed at all, at least not for the worse. Q1 revenue growth accelerated to 23% YoY, and organic growth remained solid at 5%.
I’m still looking to research Nintendo, and I’m also planning to look into some blue-chip companies trading at potentially attractive valuations. These include firms like S&P Global, Mastercard, and Visa.
Portfolio Update
