$ELF Beauty(ELF.US)

Context: ELF had a huge run, reaching around US$146 before falling sharply to about US$50. The stock has since recovered strongly from its lows.

My trade: I took profits once after the earlier rally and later bought back around the lows. I have not taken the second round of profits yet. I rank my holdings by moat, and ELF is not one of my wide-moat stocks, so I’m more open to taking profits when the opportunity comes.

Takeaway: I plan to hold my wide-moat stocks longer term, while managing lower-moat stocks more actively. For ELF, competition, consumer spending and high growth expectations remain key risks.