Next up, we have the Green L, which is Duolingo at position number 12. It's a $35,000 position, which is a 2.4% weighted holding, and it has $11,200 in the red. So, this one has been the biggest loser by far since buying it.
Dualingo was growing really rapidly. They decelerated and pulled back on their growth. Plus, a lot of investors became very concerned about their marketing efforts and how viral they can become.
And then the biggest concern for Dualingo today is obviously centered around AI and AI assisted learning. Many people believe that ChachiBT or Claude or Gemini will take over AI learning and that's kind of what Dualingo does.
I don't share that bare thesis. I don't think that's going to happen with Dualingo. I think that they're going to continue growing in their users and engagement and learning because that's all they focus on.
Now with this stock, it has actually traded up quite a bit. If we look at the stock year to date, it was at 185. It traded as low as $90 per share and then it's been a bit of a rough climb all the way back up to where it is today.
Right now, it's trading at $146. And the buyin target for this one for the additional $10,000 is going to be at $90 per share. So, if Dolingo goes back down to $90 per share, it'll get an additional $10,000.
Now, again, that seems like it could be unlikely because that's nearly a 38% drop. It's a staggering drop for most companies, but Dualingo is not like most companies. And it was at $90 per share as recent as April of 2026.
To put some conservative numbers with this, we can look at Duolingo growing around 18.5% earnings per share growth. I believe that there's much more upside if they get to scale.
I think we could see the earnings per share growth go much higher than that. At an EPS multiple or a PE ratio of 27 and we buy the stock at $90 per share, we get a 14.2% compounded return over the next 5 years.
