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🤩 Basically everything #ARKInvest talks about, from #growthstocks (like Tesla and Palantir stock) to crypto (bitcoin, ethereum, and #coinbase stock) has been crashing over the last few weeks. Has #CathieWood and @ARK Invest lost their touch or are these still some of the best stocks to buy now? Here are the exact stocks I'm watching and how I'm building my all-weather growth portfolio.
In this episode, I'm going to lay out exactly what I'm doing as growth stocks are collapsing
and people continue running for the hills.
If your portfolio is hurting after these last few weeks, this episode is for you.
Your time is valuable, so here's the bottom line upfront: I'm not selling anything, I'm
building up my cash and my defensive cash-like positions, and I'm updating my watch list
with the exact stocks and funds that I'll cover in this episode.
Full disclaimer, I'm not a financial advisor and nothing in this episode is financial advice.
Let's get right into it.
Here's what's in my entire $100,000 dollar portfolio on public dot com right now, just
to show you.
I'll talk about what I bought and how it's been changing in a separate episode, but I'm
showing you this so you can see that I'm down 10%, 20%, or even 30% on the money that I've
invested so far.
This doesn't bother me at all because I believe in the underlying companies, many of which
I've covered on this channel, and I bought them for prices I thought were fair.
So the first thing I'm doing with this existing portfolio is absolutely nothing.
If you have stop losses on your positions, make sure you at least check them and make
sure they're still where you want them.
I've cleared all my automations and I'm doing everything by hand.
The only things I have automated right now are my price ALERTS so I know to check on
stocks that fall below a certain price.
For example, I'm always happy to buy Facebook stock below 300 dollars a share, which is
about an 840 billion dollar market cap, so I have an alert set to let me know when that
The second thing I'm doing is building up my cash and cash-like positions.
My account is actually still almost 50% in cash because I'm concerned about the Fed accelerating
tapering as well as the next wave of the pandemic.
If you're not concerned about those things, that's okay, but now you have a data point
for how I'm personally digesting that news.
What are cash-like positions?
To me, they're big tech stocks that are relatively stable and resilient to inflation but still
have plenty of ways to grow their business.
To you, they might be bonds or stocks like Walmart and Costco.
That's fine; the point is they're positions you treat as cash but that don't lose value
to inflation like cash does.
So, if you include those, I'm actually about 55% cash right now.
If you were considering putting a little more cash than usual into your own account, now
might be a good time to get it in there.
I'm not saying spend it, I'm saying have it ready so you're not waiting for transfers
to complete when you want to be spending it sometime in the future.
All we're doing here is being proactive, not emotional.
Okay, with the housekeeping out of the way, let's talk stocks.
I'm going to go through them roughly in order from least risky to most risky, starting with
The first fund I'm watching right now is META, the Roundhill Ball Metaverse ETF.
This is a fund that gets rebalanced quarterly by a panel of experts and is filled with around
40 great stocks.
The top holdings in this fund are NVidia, Roblox, Microsoft, Facebook, and Unity.
As I said, Facebook and Microsoft are very defensive positions which really help limit
the volatility of this fund.
Its holdings also include semiconductor companies like Taiwan Semiconductor, Qualcomm, Apple,
Intel, AMD, and Skyworks, which are again very reliable growth companies over long periods
of time, since they make most of the computer chips on the planet, among other things.
The META fund also includes content companies like Unity Software, Sea Limited for their
Garena Platform, Take Two Interactive, Electronic Arts, and Activision Blizzard, as well as
plenty of fintech and e-commerce companies like Amazon, Sea Limited, Coinbase, Alibaba,
Square, and Paypal.
The big thing about this fund is it's filled with companies that are driving the Metaverse
forward, which means its holdings will all benefit from that idea as it becomes more
mainstream, but none of them require the Metaverse to happen in order to succeed.
Companies like Nvidia and Microsoft and Amazon and Apple, all of which sit near the very
top of the fund, are going to be fine if the Metaverse never comes to be.
So, this quarterly updated Metaverse Index Fund is my pick for the least risky but still
great growth investment you can buy right now.
Next up, we have ARKK, ARK Invest's flagship innovation fund.
This fund is filled with the exact stocks that are getting hit the hardest, but it's
actively managed by Cathie Wood
is pretty well diversified in terms of the kinds of technologies it holds: genomics,
robotics, energy storage, blockchain technology, and artificial intelligence are all themes
that show up in this fund.
ARKK's top 5 stocks reflect that diversity pretty well: Tesla, Teladoc, Roku, Unity Software,
and Coinbase are five companies that have very little in common.
I treat ARKK like an innovation index since it contains companies working on technology
platforms in all those different areas, except its holdings are updated daily.
When ARKK crumbles like this, that tells me that something is going on with growth stocks
and the broader market in general, not the companies themselves.
Since this is an actively managed fund, you're not only getting a diverse set of growth stocks
from all areas, you're getting Cathie Wood's management and all of ARK Invest's highest-conviction
research as well.
Since ARKK is the same financial product no matter the price, the cheaper it becomes,
the more attractive it should be.
In my opinion, if you loved this fund earlier this year, now is a great time to consider
I just did that in my personal portfolio.
The first single company on the list is Meta Platforms, formerly Facebook.
Meta Platforms is an extremely safe, stable, and diversified business today that's still
growing like crazy year over year.
Meta Platforms has slid around 20% in the last 3 months and is now sitting at under
850 billion dollars in market cap.
That's pretty crazy, considering they own Facebook itself, Instagram, WhatsApp, and
Facebook Messenger, which are four of the top 6 or 7 most downloaded apps across all
mobile devices, Apple, Android, or otherwise.
A lot of people rightfully point out that Facebook's growth is slowing down in terms
of daily and monthly active users.
That's true but that's because, you know, more than a third of all humans alive are
already on their platform.
They're clearly shifting their focus to increasing average revenue per user, which they've increased
by double-digit percentage points year-over-year around the world.
They also own Oculus line of virtual reality headsets, which are the hands down the most
popular VR headsets on the market today and will do a lot for them in the future.
This is a stock that Cathie Wood holds inside ARKW, ARK Invest's fund themed around the
next generation of internet applications.
It's also a top position in the META ETF, and one of my favorite cash-like positions
in my own portfolios.
I think the low 300s is a great price for the stock.
Next up is Alphabet, the parent company of Google.
I'm actually struggling to find a market that Alphabet and Google don't compete in.
Everything from dominating search and email and web browsing, to making their own phones
and operating systems and smart TVs, to self-driving cars with Waymo, to building the most advanced
artificial intelligence applications ever with programs like DeepMind and AlphaFold.
Google even owns YouTube, so when I ask you to hit that like button and subscribe to the
channel with all notifications turned on, what I'm actually asking you to do is tell
Google's video content matching algorithm to put more of my content and other content
like it in front of you over time.
Like Facebook, investors who think Alphabet is out of room to grow probably haven't looked
at the stock for a while.
It's up 65% year to date, even with this most recent downturn.
My point is, Alphabet isn't the kind of company that cares too much about inflation and does
just fine during lockdowns.
It's another great all-weather company that's held by Cathie Wood, this time in ARKQ, ARK
Invest's fund themed around the autonomous revolution, as well as ARKX, their newer space
exploration fund, and in the META ETF as well.
If you've been following along with my portfolio project as an Insider tier Patron on Patreon
or channel member right here on Youtube, you've noticed me buying a lot of Google stock lately,
since I treat it as a cash-like position.
Alright, now let's get into the more risky positions.
First up is Sea Limited.
If we go to Public dot com's page on Sea Limited, we can see it's actually three companies in
one: Garena is their digital entertainment and gaming brand, Shopee is their e-commerce
arm, and SeaMoney is their digital payment solutions.
If each of these business units were a separate company, I'd have all 3 of them in my portfolio.
I'm not kidding.
Garena is the Southeast Asian publisher of some of the most downloaded games in the world
like League of Legends and Free Fire, which it also developed.
Shopee becomes one of the dominant e-commerce channels in every country it touches and SeaMoney
is one of the fastest-growing Fintech units I've seen a company create.
The fact that you not only get all 3 with one ticker but they all talk to each other
and share resources makes this my absolute favorite company to hold for the long term.
I think that Sea Limited could be a 1 trillion dollar company one day and it recently slid
back down to a 100 billion dollar market cap, meaning I think it can 10x from here.
Will that take time?
Can it go lower?
Would I buy this stock at this price and hold it for the long term?
One thing I love about Public dot com is they have a little indicator showing why they think
a stock could be down right now.
Shares of streaming, social media, and gaming companies are trading lower amid overall market
weakness as new pandemic concerns weigh on stocks across sectors.
So, literally, nothing to do with the company itself.
Another thing I really love about Public dot com is they really focus on investor education
and learning about companies, not just stocks.
As a result, they end up featuring my deep dives on stocks quite often and my video on
Sea Limited is no exception.
If you want to know why I'm so confident in Garena, Shopee, SeaMoney, and everything they
share, I made an episode covering it all.
It's even got Jackie Chan.
I'll leave a link to that in the top right-hand corner of your screen and in the description
below as well.
Next up we have Twilio.
Twilio is a B2B cloud communications company that allows software developers to build all
sorts of web-based tools like automatically sending and receiving texts, phone calls,
Facebook and Instagram messages, emails, and so on.
All sorts of businesses use the Twilio platform and they grew revenues by 65% year over year.
Twilio is ARK Invest's 11th biggest position overall with just over 1 billion dollars invested
I definitely owe you a dedicated episode on Twilio and I promise I'll do it in the near
Let's look at the Public dot com page for Twilio as well.
Shares of several companies in the broader tech sector are trading lower on continued
volatility amid pandemic concerns.
Weakness from DocuSign and Asana earnings has also weighed on the sector.
So again, absolutely nothing to do with the company itself.
If we scroll down a bit, analysts are currently giving Twilio a strong buy rating with a price
target of almost double the current share price.
This is why I often use Public dot com's website as a starting point to figure out what's going
on with a company and its stock and why I asked Public to be a sponsor for the channel.
So, whether you're looking for a new home for your own portfolio or you just want a
different way to support the channel, you can go to public dot com slash ticker symbol
you and you'll receive a free slice of stock worth up to $70 when you fund your account.
Public dot com is free to use with no account minimum to get started, doesn't charge fees
for standard trades, and allows you to buy slices of stocks for as little as one dollar.
So that free slice of stock when you fund your account is a win-win if I've ever heard
I'll leave a link to that exclusive offer for you in the description below as well.
Crowdstrike is a leading cybersecurity company that protects customers by leveraging its
security cloud solution to stop breaches.
Cloud technologies have transformed companies in a wide variety of market sectors, and cybersecurity
is no exception.
Crowdstrike runs a software as a service platform called Falcon, which is an endpoint protection
platform that detects, prevents, and responds to cyber threats and attacks.
An endpoint is just an access point – think laptops and desktops, mobile phones, servers,
and so on.
Like I said, Falcon is a platform, which means Crowdstrike and their partners can extend
it by building and deploying new modules to provide customers with new functionalities
Because Falcon is cloud-based and runs as a single agent, it's lightweight, easy to
get up and running, and provides nearly instantaneous value, which can't be said of a lot of cybersecurity
In a world where more and more businesses are going digital and more and more cyber-attacks
and data breaches make the news, Crowdstrike is poised to grow massively, like it has been.
Crowdstrike has been trending down all month and it's almost back to its lows for the year.
This is actually the lowest it's traded from a price to sales point of view.
You won't regret putting Crowdstrike near the top of your watch list.
The final two companies are both Fintech companies.
First, we have Coinbase.
Coinbase is ARK Invest's 3rd biggest position for a reason, which is that it acts kind of
like a crypto index without being one.
So, Coinbase is a great way to gain exposure to the rise of cryptocurrencies without holding
Today, Coinbase makes money by charging fees on transactions.
So, the more transaction volume the better.
Let's look at Coinbase's key metrics.
Retail trading volume is up almost 5x year over year.
Institutional trading volume is up almost 9x year over year.
And more revenue is coming from other crypto assets than Bitcoin and Ethereum put together,
which is great because it means Coinbase isn't relying on the price action of any one cryptocurrency
for a majority of its revenue.
As a result, Net Revenues are up more than 4x year over year.
Coinbase also just released their own fully stand-alone crypto wallet along the likes
of MetaMask and Trust Wallet.
If we look at the stock, it's down 25% from its recent all-time high and its market cap
is now just 57 billion dollars.
Again, I would put this near the top of your watch list.
The other fintech company is Stone.
This is by far the riskiest stock on my list.
Warren Buffett and Cathie Wood both hold millions of shares of this stock.
Stone is a one-stop shop that provides small and medium-sized businesses in Brazil the
Fintech solutions they need to move away from cash and join the digital economy.
The thing I want to point out about Brazil is that a lower percentage of people have
internet there than in the US, Canada, and Western Europe, meaning Stone's base-level
market is still growing year over year as more and more people gain access to the internet.
Stone has a point of sale solution for accepting credit cards, digital wallets, and QR codes,
kind of like Square's payment terminal.
In addition, they help businesses complete fully online transactions without any physical
devices by generating payment links that can be sent to customers for quick and easy sales.
Stone can support micro-merchants and very small vendors without actual storefronts or
websites, which greatly expands their total addressable market.
That kind of scalability is important to long-term growth.
However, fintech companies in emerging markets come with real risks.
For example, in Brazil, merchants have to put up a certain amount of collateral to get
a business loan or credit line.
That collateral is registered with one of a few registries in Brazil, made by the Brazilian
government, so this registry isn't something Stone built, it's a new collateral system
that they have to integrate with and keep up with as it changes.
Due to a malfunction in these registries of receivables, merchants could put up collateral
with Stone, then go apply somewhere else for financing and reuse that same collateral,
because these registries don't talk to each other.
That's a big malfunction and it resulted in Stone issuing a lot of non-performing loans,
which showed up as BIG losses on their balance sheet over the last few quarters.
That's what caused the start of Stone stock's landslide.
Other than these non-performing loans though, Stone's business is growing very fast and
performing very well.
Compounding that landslide are all the things I've been talking about for the last few weeks,
like fed tapering, talks of raising interest rates, the pandemic — the same things causing
ALL of these stocks to slide, which is why I made this episode as well as the last few,
which I encourage you to check out as well.
Comment below or tweet me at Ticker Symbol YOU with your thoughts on these stocks and
Do you like the safer ones more or the risky ones?
Were some of these on your watchlist already?
Do you have your own price targets for them?
I'm excited to hear your thoughts.
Either way, the best things you can do right now are: don't panic sell, start proactively
building up cash and cash-like positions, and fill your watch list with stocks and funds
you'd be happy holding through landslides like the one we're going through right now.
Stay informed, stay long, and stay strong.
Thanks for watching and until next time, this is Ticker Symbol YOU.
My name is Alex, reminding you that the best investment you can make… is in you.
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