In mid-September, I created two stock indices comprising cloud B2B Commerce software companies. (I used a cool company called Motif Investing.) One of the indices tracks 30 stocks that engage in B2B commerce generally (B2B E-Commerce) and the other one comprises 18 vertically oriented platforms (Industry Clouds). You can track the ongoing performance of both indices on my new website in the resources section. By clicking on the embedded trackers, you can see the holdings of each fund as well as the weightings (by market cap). I’ve even organized the holdings of each index by which of the nine value propositions of B2B platforms each of the holdings most exemplifies.
I was reminded of the indices this morning when I woke up and saw the notice that SAP had completed its acquisition of Concur (CNQR). CNQR was the largest holding of both portfolios and had led their performance since I created the portfolios just before the SAP announcement (total coincidence–no inside knowledge!). As a result, this morning, I had to rebalance the portfolios by removing CNQR. I also decided to add in Yodlee (YODL) which had recently gone public.
This morning I also received a stock alert on CNQR from my broker, Charles Schwab:
Note the price CNQR was trading at when I set the alert many years ago–$14.45. And note the price CNQR last traded at $128.78. One of those “10 baggers” that Peter Lynch used to write about and that I have never experienced. Yep, I had no shares in CNQR. For this and many other reasons, I’m not suggesting you invest in these indices. I just think the indices are a fun way to keep track of B2B Platform valuations, as well as to see if the network effects of platforms translate into good investment prospects over the long-haul. My casual observation suggests they have and will, though my actions buying stock do not reflect this!
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