⚠️ BUYING THE DIP on These High Growth Stocks & Crypto

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It's time for another super exciting portfolio update! That's it. That's the update. Or it
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would be if I wasn't still holding about $65,000 in cash. Whenever people hear that they tend
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to remind me that investing today is better than investing tomorrow and that the market
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is designed to go up. Well, that's actually true! But I'm not here to invest in the market.
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I'm not putting a hundred grand into the S&P 500, or the NASDAQ, or the Dow. Instead, I'm
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investing in individual hyper-volatile growth stocks and cryptocurrencies, the same things
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I cover on this channel. These things can shoot up or down 10% or more in a single day.
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And, uh, many of them have. I'm looking at you, Peloton. What's more, many of my favorite
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companies have had to find clever ways to deal with a global pandemic. Remember that?
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Oh yeah, and inflation is the highest it's ever been in my. entire. life. In this episode,
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I'm going to show you my updated portfolio and give you another investing exercise that
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costs you absolutely nothing and I feel will make you a much better investor. Your time
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is valuable, so timestamps are enabled for your convenience and we can get right into
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it. If you're just here to see what's in the portfolio, here it is upfront. A lot has changed,
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so let me break it down for you. There are currently 23 stocks and 1 cryptocurrency – Ethereum.
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This is probably as spread out as the portfolio will get. This is a thematic portfolio and
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the themes I think will provide the most returns over the next decade are Fintech, the advanced
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tech stack, virtual worlds, and a half-baked theme I'm calling disintermediation. If you've
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been following the channel for a while, you'll know that those themes actually have a lot
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of overlap, and ARK Invest covers them all with their research. If these themes sound
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like a bunch of buzzwords to you, no problem. Let's go through each one real quick.
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Fintech is financial technology. So it's about making it easier to do things like banking,
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investing, getting a loan, payments processing, and so on. The internet and artificial intelligence
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are making financial products and services much more streamlined and affordable. That
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means emerging markets where a lot of people are still just gaining access to the internet,
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like South East Asia and Latin America, will go through a Fintech revolution as more businesses
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stop needing to rely on their government's broken and fragmented physical banking systems.
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So, some of my Fintech positions are Mercado Libre, M E L I, Upstart, U P S T, and Stone,
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S T N E. All 3 of these positions have dropped 10 to 30% in the last month alone and you
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can see that I'm in the red on all of them. Stone actually dropped thirty percent while
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I was recording this due to their most recent earnings report. Thirty. Three zero. I'll
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make a separate episode covering their most recent earnings because they were actually
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pretty good, but for now, imagine how salty I would be if I spent all the money I had
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planned for Stone in one go.
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The next theme in the portfolio is what I'm calling the advanced tech stack. The tech
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stack of a business is the collection of software platforms, tools, and technologies it runs
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on. If that makes you think of Amazon Web Services, you're on the right track. In my
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opinion, a business's tech stack is going to change in 3 ways. First, all businesses
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will become more data-driven and more automated. In my portfolio, that's Palantir, ticker symbol
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P L T R, and UiPath, P A T H. Second, in a world full of cyber-attacks and data breaches,
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businesses will invest more in cybersecurity. That's Cloudflare, ticker symbol N E T, and
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Crowdstrike, C R W D. Third, more of the business world is shifting to online work, online sales,
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and online networking, so I think communications services will keep getting more and more important.
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That's Twilio, T W L O, and Zoom, ticker symbol Z M.
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The third theme is the metaverse. To me, these are the companies focused on digitizing, simulating,
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and designing things in the physical world or creating new digital worlds altogether.
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These companies build some combination of viewing devices for augmented and virtual
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reality, as well as physics engines, graphics cards, and supercomputers. One nice thing
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about this theme is that it overlaps with the other themes. Fintech is important to
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the metaverse for the same reason it's important to the internet; people will transact in virtual
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worlds like they do in the physical one. And just like any other internet-based service,
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companies doing business in virtual worlds will want a smart, automated, and secure tech
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stack. Another thing that's really nice about this theme is that the leaders of tomorrow's
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Metaverse are already leaders of today's internet. Google, Facebook, Nvidia. Unity Software is
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a core piece of software to most companies building on it, so it could've gone in the
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tech stack theme instead. Same with the products and services made by Nvidia. The fourth theme
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is all about disintermediation. It's a loose catch-all theme that just tried to capture
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this idea of using advanced technology to streamline a legacy professional service down
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to just the essentials. If you find a company that successfully does that, it's probably
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a great company. Peloton connects you directly to the trainers; no gym required. Tesla takes
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the dealers and, eventually, the drivers out of point-to-point transport. Teladoc takes
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the office out of the doctor visit.
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The reason Sea Limited, ticker symbol S E, and Ethereum are my two biggest positions
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is they fit all of these themes, not just one or two of them. Since they represent 20%
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of my investments right now, let me add a little more context to them. This is public
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dot com's page on Sea Limited. This is always where I start my research now because it usually
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has a quick tidbit on what's going on. Sea Limited has 3 main business units: Garena,
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which focuses on online gaming and publishes some of the most-played games in the world,
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Shopee, which is one of the biggest e-commerce shopping platforms in Southeast Asia and is
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expanding internationally, and SeaMoney, which is Sea Limited's digital payments and financial
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services branch. If each one of these business units were their own stock, all 3 would be
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in my portfolio. I'm not joking. Just like Tesla's different business units focused on
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auto, energy, robotics, and AI training. And just like Tesla, the fact that they are all
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one company and get to cross-talk and leverage each other's assets is what makes the company
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even more special. Sea shares are trading lower after reporting mixed Q3 results. There's
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a lot more chatter about Sea Limited after earnings, so there's new information being
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digested by the market on it right now. Sure enough, these headlines give me a sense that
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there's something I need to look up and try and understand right now and these articles
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are probably a great place to start, so that's what I'm going to do after I finish crying,
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I mean recording this episode. The way they organize and present stock data is one reason
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I'm a big fan of public dot com and asked them to be a sponsor for the channel. Whether
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you're looking for a new home for your own portfolio or you just want to invest in the
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channel that invests in you, you can go to public dot com slash ticker symbol you and
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you'll receive a free slice of stock worth up to $70 when you fund your account. I'll
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leave a link to that exclusive offer for you in the description below.
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My other top position is Ethereum. Based on my limited understanding, Ethereum is the
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Sea Limited of cryptocurrencies. Some of the biggest blockchain-based games like Axie Infinity
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and Alien Worlds and Cryptokitties are on the Ethereum network. Don't judge me. Marketplaces
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for NFTs and digital collectibles run on Ethereum. For example, VeVe is an app-based marketplace
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for premium licensed digital collectibles. With VeVe, people can obtain digital collectibles
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of different rarities and showcase them in the virtual showrooms, as well as buy, sell
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or trade them with other users. VeVe has a licensing deal with Disney, DC Comics, and
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others, so their collectibles include everything from Marvel and Star Wars to Batman and Superman
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to Star-trek, and a lot more. That's real commerce happening on the blockchain. And
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of course, Ethereum on its own fulfills the role of being Fintech, but in a different
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and much larger way than SeaMoney. So, in my opinion, Ethereum and Sea Limited embody
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my vision of the future in two completely different, unrelated asset classes – stocks
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and crypto – so I'm happy holding both right at the top. Comment below or tweet me at Ticker
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Symbol YOU with your thoughts on my portfolio right now, remembering that the goal is to
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compete with ARKK, ARK Invest's thematic innovation fund that's actively managed by Cathie Wood.
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Do you not like one of my themes? What do you think about the weightings of the stocks?
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Am I spread too thin? Do I hold too much cash? Seriously, I'm excited to hear your thoughts.
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If you don't like one of my stocks or themes or ideas about the future, just don't invest
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in it. If this whole metaverse thing isn't an idea that excites you, don't worry about
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it. You should be thinking of the entire stock market as a buffet. And all of YouTube for
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that matter. It's ok to buy some of the stocks your favorite investors talk about and not
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others. It's ok to buy a stock, learn something new about it and then sell it if new information
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changed your mind. It's okay to be wrong. We YouTubers don't really say that enough.
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It's not okay to stay wrong. That's what's going on with the bottom positions in my portfolio,
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mainly Peloton and Snapchat. I haven't sold a single share of these stocks but I haven't
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bought the dip because I'm really thinking about their valuations versus the rest of
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these companies on my list.
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In my previous portfolio episode, I gave you and myself an exercise. Our job was to take
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our favorite 30 or so stocks and rank them. The top half of your list or so form the core
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of your portfolio and the rest should be your watchlist. If a stock gets added to your watch
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list, another one has to be taken off because we'll never be able to keep track of hundreds
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of stocks. A stock has to make it to the top of your watch list before it can be placed
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in the bottom of your portfolio. That's how your watch list protects your portfolio from
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your emotional decisions. If you want to learn more about that exercise and try it for yourself,
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check out my previous portfolio episode. I'll leave it in the top right-hand corner of your
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screen right now and in the description below as well.
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Here's the issue. If you already hold a bunch of stocks and did this exercise, you probably
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ran into an interesting problem. Your new ordered list and your existing portfolio don't
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match. That means you're wishing you held more of your top stocks and holding some stocks
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you're no longer very confident in. [this is fine] I totally get it! The first thing
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you need to do is not beat yourself up because these are living breathing evolving companies
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that are changing all the time. It would actually be a lot weirder if your list and your portfolio
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always matched exactly as new information came out and the stock price kept moving.
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We YouTubers don't really say that enough either.
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That said, here's the next exercise. All we're going to do is start at the top of the list
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and ask ourselves: based on everything I know about this stock, do I want to be holding
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more of it, the same amount, or less of it today? Don't go and do anything crazy, just
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answer that question honestly for each stock. If you're not sure, that just means you should
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go read the latest earnings report and a few articles on the stock or go find a few good
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YouTube videos on it, or however you do your own research. If you wish you were holding
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more of every single stock, you probably need to raise your standards. This isn't tinder.
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You don't need to swipe right on everything you see. What you'll probably find is there's
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a stock somewhere in the middle of your list that's pretty close to spot on. You like the
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stock, you're glad you hold the shares you have and you don't want to buy more at these
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prices, but you would if it dipped hard. Hopefully, most of the stocks above it are stocks you
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wish you were holding more of and most of the stocks below it are stocks you would cut
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before you would cut that one. If that's not true, ask yourself again if your list is really
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in the right order. If you have several stocks you're happy with like that, find the bottom
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one, by weight. This stock is the new bottom of your portfolio. You're done swiping right
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on stocks that you have less conviction in than that one until something fundamentally
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changes.
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For me, that stock is Facebook, ticker symbol F B, which will change its ticker symbol to
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M V R S in December. Look at my stocks underneath Facebook. Nvidia, AMD, Tesla. These are some
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of the best companies in the world. They also got 40% more expensive in the last 4 weeks
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or so. I want a lot more of them, but not at these prices, so they're staying below
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Facebook until their prices come down or they grow into their valuations a little more.
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That doesn't mean I'm selling them; I'm just letting them be because I don't think these
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companies are 40% bigger than they were a month ago. The rest of the stocks below Facebook
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– Signify Health, Pinterest, Snapchat, and Peloton – are also good companies. They're
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just companies I'm not worrying too much about because look at the very top of my portfolio.
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Almost all of my highest conviction stocks are on sale. I bought them at prices I thought
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were fair and they're all 10% off. So, if the order of my list is right, where should
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I put my next dollar? For you, the place to start is with the highest company on your
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list that's dipped the hardest. For me, it's definitely one of these top 7 companies.
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In just 2 straightforward, free exercises, we've narrowed our investing universe to 30
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stocks and ordered them in a way that quickly lets us spot opportunities and prioritize
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our research. We didn't dump all our money into the market at once and by being patient,
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we avoided a massive sea of red among some of the most volatile stocks on the market.
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Getting organized costs us nothing. Staying up to date costs us nothing. But I can't help
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but wonder how much it gained us in the long run. This is Ticker Symbol YOU. My name is
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Alex. Reminding you that the best investment you can make… is in you.