Sleep Well Portfolio consists of time-tested leaders. We screen them using a rigorous checklist and track their thesis regularly to buy at reasonable prices. We discuss our learning, mistakes, and actions every month here. FAQ and more about us here.
Every month, I publish a Best Buys list to highlight which of my 23 sleep well picks I consider worth adding or trimming. It complements my quarterly thesis-tracking updates, in which I essentially ask, “Is the thesis intact?” for each company.
I also discuss my research list of ~40 businesses. In this series, I want to discuss a leader in Food Safety (a direct competitor to SPS Commerce’s small line of revenue - tracability, partnership with iFoodDs ~$7M annual revenue). It has been doing well but is suffering a temporary setback due to a delay in FSMA 204 becoming law. Prices are becoming very interesting and, if one is patient, this company could be a big winner.
Best Buys for December 2025
Public Safety SaaS leader - 4% yield with at least 20% 3-year forward growth guided
Commerce Infastructure in South East Asia - 5% yield with a decade of 20% growth
Commerce Infastructure in Latin America - 5% yield with a decade of 20% growth
Retail Supply Chain SaaS - 5% yield with at least 10%+ growth
Trimming candidate
CrowdStrike (CRWD), an 8% position, with a P/FCF of ~120x, is outside my comfort zone.
Before we dive in, please be reminded that the average ‘investors’ holding period has shortened to just a few quarters, from 30 months in the 1990s. In contrast, my holding period runs until 2037, when the portfolio will pass to my daughters. As a result,
The endgame of best buys
is to highlight enduring businesses at reasonable prices and own more shares incrementally.
My strategy -
Add to those with unique anti-fragility for specific events.
Balance the portfolio with businesses at different life stages.
Add to the winners who experience short-term setbacks.
For example, I have
17% of the portfolio that performs well in ‘security crisis’ - CrowdStrike, Fortinet, and Cellebrite, 27% does well in global logistic complexity - Wisetech, SPS Commerce, and Grab, 7% to buffer the portfolio if we have another health crisis - Veeva Systems, 32% to navigate the digitalized world - Sea Limited and Mecardo Libre.
30% of the portfolio is in a more mature stage of its life cycle, 6/13 are US domiciled, and 12/13 have a net cash balance sheet (average of 6% of market cap).
The list is not based on the positive/negative newsflow for the following quarters. It is also not deliberately trying to be ‘active / beat’ the market (S&P 500); if it does, that’s the icing on the cake. It’s more about building knowledge and positioning in businesses that I think will perform sustainably through 2037.
Hence, best-buy lists are personal; to apply them accordingly to your needs, I encourage you to review the deep dives and updates before taking action.
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