The Stocks and Savings Podcast 125. Three Big Moves In Our Portfolios - Selling A Loser To Purchase A Winner
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Oct 8, 2025 This month, the hosts dive into their investment decisions, including selling Lululemon shares after grappling with product issues and tough competition. They explore Lululemon’s strong margins but acknowledge the shift from a growth leader to a risky turn-around. Andrea cleverly reinvests in Axon Enterprise, while Jamie trims his positions in CrowdStrike and Shopify due to valuation hesitations. The discussion also highlights Jamie's strategy of investing in global index funds and hints at exciting potential stocks like Uber and SoFi.
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Wait Three Years Before Selling
- Give a business at least three years before considering selling the position.
- Re-evaluate when your original investment thesis changes and act accordingly.
Margins Reveal Brand Strength
- Strong gross margins can indicate durable brand pricing power even when revenue growth slows.
- Lululemon kept ~58% gross margins compared with peers in the low-to-mid 40s, showing brand strength.
International Growth Offsets Domestic Slowdown
- Revenue growth can decelerate yet remain stronger than peers and be offset by faster international expansion.
- Lululemon's US growth slowed but China and rest-of-world grew strongly and now account for over a quarter of revenue.