That was a hell of an earnings season, all but boring. I managed to get both slaps and love from it. Noise is all around and intensifies: end of quantitative easing, inflation or even new COVID variants. In the last 2 weeks, my tech-heavy portfolio went down 10% because of it. Some growth darling stocks, stars of 2020, have seen brutal corrections such as ROKU, Docusign, Twillio, Fiverr, Peloton etc.

Time to buy the dip?

I have a decent cash position I built over time, equivalent to about 15% of my portfolio, to do just that. So is it time to buy the dip? Or forget about tech/growth for the foreseeable future?

Thankfully, we don't have to take this decision by ourselves. We just have to look at what experienced investors are doing. If you have been following me for a while, you know I pay close attention to what insiders are doing. Once again, these insiders show me the light at the end of the tunnel. In November 2021, I received insider buys alerts for no less than 22 different tickers from my watchlist, making it the busiest month of 2021 yet. Many of these stocks have had substantial price corrections driven by earnings reaction to decelerating growth, which is logical after a record 2020 for stay-at-home and cloud stocks.

Last but not least, hedge funds 13F filling show their buying activity has slowed down a bit since its Q4 2020 high, but Q3 2021 sentiment is still positive and way higher than in 2019. Hedge funds allocation between sectors is even more exciting and shows a contrarian picture of what we typically read as good inflation hedges (aka Energy and Finance, for example). Tech is still the most significant allocation and has increased for the past 3 quarters.

I read that tech stocks perform poorly in a high inflation environment. Even if it was true, it seems the latest correction just priced it in, so I looked for good value stocks and bought the dip. Careful! Insiders and hedge funds are usually the "buy and hold" kind, like me, so if you do not have at least a 5 years horizon for your investment, this may not be the best fit for you.

Here is what I found.

Peloton, smart money signal you cannot ignore

In 2011, Netflix stock was down 70%, then announced convertible financing headed by Jay Hoag. Jay Hoag performed the same thing for Peloton ten years later, a few weeks ago in November 2021, buying more than 70 million USD in shares. Jay serves on the boards of both PTON and NFLX, and its VC fund now owns more than 5% of Peloton. That's some powerful insider signal from a VC legend... Keep reading

Zoom, anti-fragile at a discount

Talking about my framework, Zoom is in the top 5% of my watchlist; it checks all the boxes I need to invest in a business. Keep reading.

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Paypal: the no-brainer pick

PayPal is a payment processing platform for consumers and businesses. It also owns Venmo, a famous money-transfer app, and Honey, a browser add-on that finds coupons automatically. During the epidemic, e-commerce and digital payments profited, and PayPal gained significantly. 2 directors bought shares in the past few weeks after a brutal price correction. But why did it drop about 40% since its all-time high? Keep reading.

Skillz, the new addition, but be careful; it's high risk.

Since its debut, Skillz (NYSE: SKLZ) has been a volatile but ultimately unsatisfying investment for many. Last December, the online gaming platform merged with a special purpose acquisition company (SPAC), and its shares began trading at $17.89 before rocketing to an all-time high of $46.30 in February. Skillz's price fell to about $10 per share, despite Cathie Wood's ARK Invest holding 23.7 million shares in its ARK Innovation and ARK Next Generation ETFs. Let's evaluate what Skillz does, how quickly it grows, and why I think it is worth investing in today. Keep reading.

Novocure: when insiders buy in the biotech industry, I take note.

Tumor-treating field devices from Novocure employ electric fields to prevent cancer cell multiplication. Its primary market is presently treating glioblastoma multiforme, the most prevalent type of brain cancer. The firm is preparing for essential data readouts in the following months, enabling it to dramatically increase its addressable market in the short future. Too risky to predict clinical trials outcome? Maybe, unless a company insider thinks otherwise... This is just what happened; its CEO bought half a million dollars of Novocure stock on November 26th. Keep reading.

The author of this post owns shares of the mentioned stocks. The Rookie Investor has a disclosure policy. This article by The Rookie Investor is not a financial advice as it does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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