12.01.2021 Portfolio Update (Monthly Edition) 1 Year Anniversary on Substack
Topics for this Week: 1Y Looking Back Letter, P&L Snapshots Monthly, Portfolio Update, Portfolio Discussion, Tech Watch-list W/ Commentary From Other Investors, and Monthly Munches
I would like starting with a quote that “speaks to me”…
“Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.” - Woodrow Wilson
Even thought there has been a lot of price action (movement) on the market for the past week, this post will be a little different from others as I would like to reflect on my 1 Year on posting on substack and also “investing in the public” with my transparent portfolio.
Many of you have been asking what software I use for the screenshots. All of the screenshots that I post on a weekly basis are from Webull. It’s the trading platform I use for my investing, and personally very much enjoy using.
Here is the breakdown of this week’s newsletter:
One Year Looking Back Letter
P&L Snapshots + Account Details w/ Monthly P&L
Tech Watch-list W/ Commentary From Other Investors
One Year Looking Back Letter
I can’t believe that it’s been already a year since I sent my first official post on substack
I had one free subscriber which was my own email to test out this platform. Since “day 1” this newsletter has grown to 331 free subscribers and 10 paid subscribers (last month was 14). I understand why some of you have decided to not be a paid subscriber and I can’t blame any of you. Since I started this newsletter there has been a lot of changes. First (and the most important one) my daughter was born in the summer of 2021 which has (surprisingly) changed my world A LOT.
(I thought having one child was hard, well apparently two is even harder! Who would of guest?!)
Because I already have one daughter who is three years old, I thought a new addition to the family would be “easy” transition for me to keep up with everything that I have going on. Again, I was wrong. It became a lot more difficult for me to try to find “enough hours” in a day to be able to complete all of the tasks that I used to be able to do.
I run multiple businesses and try my best to be the best dad I can (I want my girls to have a father that I never really got to have) and I started this whole “journey from $100,000 to $1,000,000” as a little project that I wanted to document my journey to see if I can reach 1 million dollars with in five to ten years.
With the combination of Twitter and this newsletter I have met many awesome people and this little project has become more than just “little project” it’s a lot of hard work that I don’t really get paid much but I enjoy it and until I started investing, I haven’t really found something as much fun for my mental fitness.
Unfortunately, as I said this doesn’t pay enough for me to quick everything else, I do and so I have to find balance between running my businesses, family, and investing. Not easy task, but nothing in life that is worth pursuing is easy.
I will be honest, my “real” work has been a struggle so easiest thing would be to quit this and just focus on “real world” but I refuse to give this up and I hope some of you can appreciate and support my un-perfect journey.
(But enough of the “sad real life” and back to “sad investing life” …. why sad? have you seen the market in the past few days? Drop drop drop. I was told market “Only goes up”. Spoiler alert that’s a lie.)
As some of you might know I don’t have any Bachelor’s or Master’s degree and my Associates in Liberal Arts is not much help when it comes to world of business and investing and so learning from great investors, reading a lot, listening to podcasts, and just observing how people act in the world to the news or on twitter has taught me a lot and I’m sure I will be learning a lot more.
I’m hesitant to share my lessons as I can’t say they are right or wrong (not much time has passed for me to get a lot of confidence in my investing) but a few things that kept repeating are:
Doing your own research and in so getting your own conviction is really helpful on the “red days” and is useless on the “green days”. Being confident in what you own when your companies’ stock goes against you 30%,40%, 50%+ and even adding to that position is the difference (sometimes) between losing money and beating indexes
Which brings me to…for the most part…buy and hold for a long time is how you generate “alpha”. Most of us are not smart or quick enough to get “in and out” of stocks to generate large returns, but most of us can be patient enough to let great companies to their thing and reward us with large returns for holding them during good times and also holding them during bad times.
Unless you really enjoy doing research on individual companies, it’s best not waste your time and just DCA into S&P500. Unless you are getting joy from researching and learning about companies and talking to other investors about, I think you are wasting your time and would be better of investing in passive index and just focus your time (which is limited) on hobbies that really bring you happiness.
In order to be a successful (meaning don’t burn all your moneys that would go to zero) investor in a long term, you must be open minded, real with yourself, and be willing to always keep on learning. Otherwise, market WILL punish you sooner or later and you might not survive to see the “later” part.
There are many other lessons that I have learned but I don’t feel like I can proclaim that they are true or not and so will (or not) share those at some other point.
This been an interesting, exciting year, but also very very hard as small business owner mainly due to covid, which got me realized that if I ever want to manage other people’s money, I would have to only focus on that. It’s a mental burnout to do both at the same time. Doable but not recommended.
Lastly, I want to thank all of you who are supporting me on my journey and I’m amazed and grateful for each one of you that takes their time to read these posts BUT also take their time and interact with comments and concerns.
The whole point of this for me to do is to share this on weekly basis and find people who are into the same things and the discuss investing related topics and expend my circle of internet friends (as none of the people in my real-life care or know about investing.
Being an immigrant from another country is not easy, even now after 17 years and being an American citizen, it can be a bit “lonely” so having found something that I truly enjoy (investing in companies, doing research, learning) and also having people that enjoy the same things that talk to them about these things is really nice and satisfying.
I hope to be doing this for many years to come, and most importantly meeting more like-minded people to share this journey with.
P&L Snapshots + Account Details w/ Monthly P&L
*I am NOT a financial advisor and all of this is for informational and educational purposes only.*
Always do your own research and your own due diligence!
Stocks + Options
I have bought tiny bit of everything and I have switched my $OPFI for $SPOT (more on $SPOT next week).
The logic behind is that I was down about 40% on OPFI and before even thinking of selling $OPFI, I wanted to sell $FB and buy $SPOT but I couldn’t find the “right time:” to do it. So, I figured I would buy Call Options for $OPFI for December and January and sell my $OPFI and buy with that money $SPOT. If $OPFI goes higher I will make money with my call options and there is that but if $OPFI doesn’t go anywhere until January 1, 2022 then I will buy back the share and ‘lock in’ my losses for tax purposes and then can be a proud bag holder of this company.
I still want to sell $FB but I didn’t think selling my “winner” to buy “unknown winner/loser” and keeping other “loser” was the right move.
Time will tell.
For the month of November got only $CVS Dividends:
Tech Watch-list W/ Commentary From Other Investors
I wanted to try something different with this watch-list, so I reached out to four knowledgeable investors and asked them to give a summery on my current four favorite tech companies:
Unity Software Inc. ($U)
Unity is a complete interactive content platform company. Its customers can design interactive content (like games using a game engine, live interactive sports using metacast, multiplayer games using UGS, industrial good's prototyping using Unity Reflect, VFX using WetaFX), analyze it using unity analytics, advertise with Unity ads or Unity IAP and monetize it with Unity monetization.
90% of mobile games and 70% of AR/VR content are made in Unity. Along with Epic's Unreal Engine, Unity holds a duopoly in metaverse content creating tools as of now. In my opinion, metaverse will be here in 5-10 years and it will be a gold rush. The best thing is, Unity will be selling shovels during the gold rush.
PayPal Holdings Inc ($PYPL)
If I had to share a few words on the business itself, I would urge investors to sift through their Analyst Day presentation from early 2021. Here, they lay out the roadmap for an acceleration over the next 5 years (relative to the last), greater breadth of product functionality, user growth, margin expansion, and how they intend to incentive greater engagement from each of their users. I think PayPal, despite being cast aside as a boomer stock, will still be executing in 5 years time, despite a growing competitive market.
Micron Technology Inc. ($MU)
In the internet age, every business hinges on its ability to automate, digitalize, organize, transfer, and exchange information. In other words, as Marc Andreesen famously proclaimed, software is eating the world. Well, if software is eating the world then data is what it’s crapping out. Every Grubhub meal, every Expedia ticket, every swipe of the credit card, every meme of a dog making that face that dogs make, it’s all data. Data is this century’s oil, which means it’s worth keeping. In order for that to happen, the data has to sit somewhere, like literally sit somewhere. There are thousands of data centers filled with memory semiconductors that are filled with your browser history and your shopping habits and your deleted tweets. This is where Micron comes in. Micron makes memory. As we fall chin-first into the metaverse (whether we want to or not) all of the above is going to accelerate. But even if you don’t care about Micron, you should still pay attention because this little corner of the world in which Micron operates holds the weight of the internet on its back. Whatever new technology excites you, whether its autonomous vehicles, augmented reality, blockchain, or smart refrigerators, one thing is guaranteed: it needs memory
Spotify Technology S.A ($SPOT)
Spotify is the world’s largest and only focused scaled audio platform. The company has a 1/3 market share in the music streaming industry, despite competing with the world’s biggest and most powerful tech companies (AAPL, AMZN, GOOG). Its highly engaged user based is approaching 400mm (paid+free) and growing at 20%. Management believes they can surpass 1 billion users over time, and that with such scale, new monetization avenues will come.
Music and audio remain the most under-monetized forms of media consumption, still in their early days of transitioning to internet level wide adoption. Spotify’s advantages include its laser focus on audio, the UX/UI product including recommendations powered by its algorithms fed with the biggest data set, and its scale (having more users than its 3 next competitors combined) which also creates network effects. More recently, its advertising strategy is bearing fruit as it has successfully become the #1 podcasting platform and is aggregating a network of listeners, creators and advertisers to provide internet level monetization to a market that has barely seen any innovation in the past years, despite attracting hundreds of millions of engaged listeners globally.
For this month, here are some things to munch on…
Thinking About Margin of Safety - (Free Article)
Books that changed the way I look at Investing.- (Free Substack Article)
The Assets of the Metaverse - (Free Substack Article)
My Investment Philosophy.- (Free Substack Article)
Thank you for reading all the way to the end.
I really appreciate your time and support and I hope to keep adding value to all be it on weekly or monthly basis.
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