We just parted ways with Amazon, and it’s a perfect reminder of why you have to keep checking the story. When we bought it, the growth justified the price. But lately, the PEG ratio crept past 1.5, earnings growth decelerated, and the narrative turned into a massive, capital-intensive slog. When a fast grower slows down and gets expensive, you don't stick around hoping for a bounce. You sell. Contrast that with Netflix and Disney, which both triggered my 8% soft stop this week. I looked under the hood, and their PEG ratios are still sitting comfortably near 0.6. The underlying math hasn't changed, so we hold our ground.

The broader tech space, including Nvidia and Microsoft, has been taking a breather over the last few sessions. I view this as a healthy rotation rather than any fundamental deterioration. However, exiting Amazon has left us sitting on over $18,000 in cash—roughly 18% of the portfolio. Unless we're staring down the barrel of a major recession, that’s far too much idle capital. Cash doesn't compound.

We’ve already started putting that money to work, scaling into high-quality stalwarts like UnitedHealth and Visa, alongside JPMorgan to catch the cyclical turn. Both UNH and V offer exactly what I want right now: consistently high return on equity with PEG ratios comfortably under 1.5. I plan to spend today's session hunting for more bargains. I am holding our high-conviction growth names through this week's noise and will be deploying our remaining cash into reliable stalwarts on any morning weakness.