Higher -- Investing, Learning, Purpose

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

Higher

I am writing this post with a heavy heart but also with a continued sense of purpose.  The last few days and weeks have been filled with stories of growing concerns for the coronavirus, the tragic death of basketball legend Kobe Bryant, his daughter, and 7 others in a helicopter crash, and the many tributes at this year's Grammys Award for those we have recently lost -- including Prince and the young brotha Nipsey Hussle.

If there has ever been any doubt as to why I write this blog I hope to clearly shine a light on that today.  My mission is to be free, have optionality, and create long lasting memories of my family, friends, and community that will be cherished for a life time.  With a laser focused work ethic like the legendary Kobe Bryant, I believe this is achievable by building a strong core.  A core built on pillars that will provide you and your future generations a feeling of social awareness and economic security.

After losing my remarkable father in 2019, I still wake up everyday with a continued sense of purpose of not letting his hard work go in vain.  How can I slack off when I have a Spiritual belief that we were put here for a reason (first pillar). If I told you of the obstacles my parents had to overcome just make it to America from Africa you would understand where my determination comes from. I think Nipsey Hussle said it best in 'Higher': "Pops turned 75, he proud what we done; In one generation he came from Africa young" (I changed the age from 60 to 75 in this lyric b/c we almost lost my father when he @ 74 when doctors told us to say goodbye -- but how grand his recovery was and magical seeing him celebrate his 75th)

He and my mom's instilled in us a Kobe Bryant like work ethic when it came to being Mentally strong, my second pillar. Kobe was the ultimate competitor -- he was often described as having ice in his veins.  I was mesmerized by Kobe because I had seen that look before...in my father when it came to education. Occasionally sharing experiences of being discriminated against (even after receiving his PhD magna cum laude, and being questioned in interviews as to how he did he do that; or being told a foreigner would never be a tenured professor), he told us the great equalizer in life is your mind. So it was no shock that one year, I received all 'A's' and stumbled with 1 'B' and I was punished more than my siblings who had NOT even met that mark.  It was a less than gentle reminder that we can't waste the moment, the opportunity to go higher..  John Legend from Higher: "Oh, Lord Can you feel it?  My shoes are scrapin' the sky   I'm so high  We keep goin' higher" 

A strong physical core (3rd Pillar) is always a part of the competitive formula for taking your game higher. Besides the insurmountable chores we were given as kids, my father always found time for us to play and enjoy. The sprints in the yard, the dedication to build a basketball goal in the back yard, and the countless sporting events he drove me to was admirable considering I was a 3 sport athlete in my large high school (HS). In one fail swoop, my father taught me real strength and a need for balance when he took on my legendary HS basketball coach.  No one ever questioned the man who was recently inducted in the HS basketball Hall of Fame and has our HS gymnasium already named after him...and he's still alive. However, my African father did that one summer day.  Being a 3 sport athlete, I am constantly practicing and playing all year. Then in the summer, we were not so SUBTLY reminded of the importance of participating in the optional summer basketball league (where they tracked attendance).  I had never been so afraid in my life when my dad went up to the school and told my soon to be Hall of Fame coach, that his African son had reached 14 and had to have a job.  To me it was like watching David take on Goliath, but for the first time at a young age I saw a person of color showing me a path of optionality.  When your mind is free and strong, you don't buy into the mindset that sports is your only ticket in life. My father was reminding me of the need for balance and that I had responsibilities to my mission...my family and my future.  Strangely after that summer, I didn't experience a drop off (like one would expect)...I went to summer basketball when I could fit it in after work, I still outworked everyone by doing drills at home, and the next summer guess what: my coach offered me a summer job, imagine that he helped me reach my goals and his. Not only was I empowered with options in my life but I was stronger physically:

• Graduated HS Male Athlete of the Year
• Football All-State (Academic)
• 3 Sport Athlete (Football, Basketball, Baseball)
• Recruited to play at the college ranks
• Honor Roll + National Honor Society

Finally, my fourth pillar is Financial. If you're not living in a bubble, we live in a capitalist society. I watched my parents struggle but scrape together the basic building blocks to provide a better life for themselves and their kids. By living within their means, they were able to pay off a very small home (3 bedroom, 1 bath home accommodating 6 people) by working multiple jobs.  They ushered 4 kids off to college and assisted immediate family who relocated from Africa. How does this make the financial pillar? By living within their means and focusing on education, they had 4 kids who paid all that hard work forward. We assisted my parents financially which allowed my mother to retire early, my parent to fix our small home (when needed), and to work a little less harder in their golden years. My future path to economic security is slightly different. Like Kobe, I've been taught to compete at the highest level and diversify my future so I'm less reliant on one boss, one company, or one downturn deciding my fate.  61% of Americans said they don't have $1000 dollars to cover an emergency situation. I am saddened by this stat.

This blog is a road map if you're believe in a path of social awareness and economic security. But please come with your mamba mentality! If my father could achieve a PhD, why should we stop learning. Currently I have a Bachelor's degree and two industry accredited certifications in my field which are like master's degrees because they require extensive testing and re-certifications (studying for my 3rd).  If my heroes can learn the stock market and write books, I can at least pick them up and read. Since I was 18, I made it a personal mission to learn the stock market (it looked important) and understand how to invest my income so that it could become Capital for me. Many of the people I know don't have any capital or investments that make them income outside of their core job. My mission is to ensure we are on a path that doesn't rely on a boss, a company, or a government to give us our freedom, our optionality, or determine when we can have time off to make memorable moments. Hopefully you agree and you keep reaching HIGHER...but don't you know that the devil is a liar  (Thanks to DJ Khaled, John Legend...and Rest In Peace Nipsey Hussle)

Rest in Peace Kobe Bryant

Investing Like the Godfather of Harlem

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

If Regular People Did That Sh!t

Legal Tax Evasion – Just when I’d like to think sometimes I've hit rock-star status (blessed with a great family, job, friend) , I remember listening to Lil Wayne’s lyrics. Wait for it – “We are not the same, I am a Martian” 👽.  This subtle line he’s repeated in his songs is to remind many of us, we are NOT on the same planet as he is. Disregard the facial tattoos , the fact he signed Nicki Minaj + Drake to his label (Young Money), or the fact that he started rapping at 13 years of age, it’s pretty easy for me to realize I got some work to do before I hit legendary status and can simply be recognized by my nickname known worldwide (Lil Weezy).  Well my ‘If Regular People’ post is a quick reminder to most of us to stop and think, while your political vote may represent what you aspire (e.g., tax cuts, small government, less regulation, etc.) you are not a Martian like those super rich who truly benefit from those policies.  Read my last post, if you don’t have enough money and connections like Carlos Ghosn has to escape prison in another country (while on trial) using private jets and jumping into speaker boxes then…you might just be a human being…not a Martian 👽.

My next example is some sh!t truly only rich or wanna be rich people have time to think about and benefit from. So I was reading an article about conservation easements. To cut to the chase, this is a law that allows someone owning land to claim they are protecting land from being developed. You get to claim that you have saved the world by reducing pollution and maintaining its natural beauty (since it goes undeveloped) AND you depending on the value of the land…you get to deduct that sh!t from your taxes.  I’m trying to not fall out of my chair laughing😀! This tax loophole is getting abused (see the IRS Dirty Dozen tax loopholes) more than “instant replay” in professional sports at the moment – and that’s a lot. If this isn’t rich people abuse, why can’t I buy up all the land in the hoods across America, mark up the price even further, and sell tax credits (i.e., charitable donations) to my people in the hood who really need it? I could demolish all those bandos and get rich while doing the public a favor??  Who should be ashamed of themselves – the Rich people hammering this loophole, the government for letting this continue, or the disillusioned people who think they are voting for policies like these which are not really helping them out??

Well anyone using this loophole is also making it very clear to the rest of us -- that use a tax software (me) or ‘claim’ we have an accountant that used to work for the IRS -- YOU ARE NOT A MARTIAN.  For us regular people, remember invest in yourself, diversify your life, and let’s change the game.

Link: ProPublica - IRS Non-Crackdown

Investing Themes for 2020

Please remember, I primarily use a data driven approach to investing.  I like to review data and events that were successful in the past and use those patterns to see if they will be successful in the future. This helps me take the emotion out of my investing. To further reinforce this I tend to set up trade alerts and purchases when I am doing my research and analysis – these are set well in advance of buying a stock so I often don’t know: a. what date I will purchase a stock (if at all) + b. why I liked the stock so much (so I take notes or blog about its potential to serve as a reminder). I also try to see if a theme is emerging from my data (so I can hammer the trend further with even deeper analysis) and I corroborate my thesis by trying to see if my Billionaire buddies (Ray Dalio, Mario Gabelli, Warren Buffett, David Tepper, Carl Icahn, David Einhorn, etc.) have mentioned these themes whenever they speak on TV or at conferences.

·          Streaming Media + Sports + Gambling

o    Media - So you want to play the streaming craze. The trend starts with high flying stocks like Google (think YouTube), Netflix and Roku. Then add Disney if you like Hulu (yup, Disney owns a large portion of Hulu). But media is now king! Don’t believe me, please watch the amazing series – The Godfather of Harlem on Epix. This is a great example that content will likely win the war…so go out and buy the content media companies that Netflix is paying top dollars to be able to stream their shows. 

o    Sports - It’s no secret that for live TV, sports is the last game in town. Revenue deals with sports teams are through the roof as new social media companies fight regular cable companies to offer live sports. Don’t believe just check out Hulu ridiculous commercials stating “Hulu Has Live Sports”. Next, get paid for something you love doing – watching sports. Do me a great favor and compile a list of all of the sports companies that are public companies. Trust, it’s cool to say you’re an owner and it makes the season a lot more interesting when you invest in shares of a sports franchise. I keep a mental list of a few sports teams that I know are public: Manchester United, Atlanta Braves, New York Knicks

o    Gambling – If the economy is doing so well, why are states scrambling for your gambling dollars.  States all across America are rushing for the 21^st century gold mine – Gambling. Casinos are Sport Betting no longer taboo. With the likes of FanDuel, DraftKings, and your local casinos offering mobile and physical sportsbooks, respectively state are raking in dollars. Many more states will follow the trend and the industry is already noticing the trend of bets being placed on mobile phone within a 15 mile radius of state lines where gambling is not offered.  Again the data don’t lie, people are showing they are willing to cross a border just to place a bet on their phone in a state where sport gambling is offered and then they head home.  

·          Cyber + ME + Social Media

o    Cyber: Cybersecurity will continue to be a huge force. Stay tuned for a separate post on stocks in this space and read my previous posts on the names I’ve traded.

o    Social Media Stocks – I have resisted the temptations of being on Instagram, Twitter, and Snapchat – but we’ll see how long the holdout continues. The world is telling you they want the attention to be all about them and what better platforms to scream to the world. So invest in social media companies because people are addicted and until people and possibly the government change the trends I’m seeing it will continue to be consumed. (Don’t believe me: see Apple’s new slow-mo selfie commercials) smh

o    ME – If you notice the consistent theme of what my data analysis is telling me is that people are using more and more things that have addictive qualities: TV binging, Gambling, Sports Betting, Social Media, etc. So the next surprising trend is people buy more things that allow them to look glamorous on social media. There is nothing better than TEETH and makeup. Yup, I’m positive Align Technology and Smile Direct Club are showing up in my research because people want straighter and whiter teeth to FLOSS on social media (no pun intended). Invisalign and Smile Direct are straightening teeth all across America. I was watching something about interesting entrepreneurs and this trend fell right into my lap. The entrepreneur got into the teeth whitening space very early and he attributes much of the success of his very lucrative business to the rise of social media and influencers (funny I thought selling yourself to another person was illegal). Or my small investment in Coty, guess whose cosmetics line they a bought 51% stake in shortly after: Kylie Jenner’s Kylie Cosmetics for roughly $1.2 Billion. Next what’s says, I’m into me better than Pinterest. It is now the 3^rd largest social media platform and it’s nothing more than a visual post-it note telling myself to buy more things for ME. If my thesis is correct and the world is getting more addicted (mainly to itself) this is great for Pinterest and the decline will be seen in church congregations across the world. The final ME investment is being consumed similar to TV, Social Media, Gambling, and Sports Betting -- its Medicinal and Recreational Marijuana. It was a CRIME to lock people up for something that people are lining up and down the streets to participate in legally.  Weed stocks are very volatile but will continue and have made many people rich legally while it funded the criminal justice system coffers (by locking up the so called gangsters) for so many years.  Now states want in on the action, even though there is no universal Federal law allowing the consumption of recreational weed. While there are too many stocks to name, you’ll see a few listed here: Aurora Cannabis, Cronos, Tilray, Canopy Growth, GW Pharmaceuticals, Cresco Labs, Acreage Holdings all play in the marijuana space.

I’m not judging on any of the trends above and will invest where I truly believe the market is going. But while I do, I can personally decide what I will participate in and won’t. So for now I guess you can call me the un-social media, non-gambling, non-smoking, slightly TV binging guy (The Godfather of Harlem, Power, NFL, + NBA) – hey Lil Wayne…maybe I am a Martian too.

2020 Kick-Off - Reflect But Expect Disruptions

If Regular People Did That Sh!t

Carlos Ghosn – The previous CEO of Nissan must have been watching the movie “Catch Me If You Can”. For those of you not paying attention, he had been jailed on charges related to misusing company funds – a charge alleged by Nissan.  Mr. Ghosn orchestrated an escape out of Japan that truly only rich people can get away with. So regular people if you ever get jammed up, follow what rich people do, not what they say:

First he was not required to wear any electronic monitoring device (smh).  Then Carlos evaded detection and took a high speed train to Japan's Osaka airport to board a private jet.  How do you board a plane when you been accused of damaging Japan's iconic Nissan company - well by jumping into a large speaker box used for concert equipment (remember to poke holes in it like he did or it might not turn out good). From there, the plane went to Turkey and his team got him onto a plane to Lebanon.  Why Lebanon – because Carlos’s game is tight he is a citizen of Brazil, France, and Lebanon. And Lebanon DOES NOT have an extradition treaty with Japan so for now he’s untouchable. To plot and possibly test run this escape, it took months and supposedly hundreds of thousands dollars.  So next time you think you’ve made it, ask yourself is your get outta jail card as good as Carlos Ghosn??

No Photoshop – A Real Look Back

I continually assess my performance to ensure I am reaching my goals and targets. Here is a look back at 2019 and when personally reflecting you have to be real about what worked and did not work. But I always caution patience, look at my list from the previous year end and surprisingly the areas where I decided to push forward paid off.  Here is a quick summary of Items that Did Not Work (in Red) and Nice Surprises (in Green):

·          Colony (CLNY) – Due to poor performance at this company, some investors have called for CEO Tom Barrack to step down. Investor(s) rationale: being a close personal buddy to Donald Trump has caused reputation risk to the company and has been and operational distraction for Tom. Who is the agitator: Blackwells Capital. Outcome: Unclear if it’s a coincidence, Mr. Barrack has named, Marc Ganzi, as his successor and the CEO transition will take place in 2021. 

·          AMC Entertainment (AMC) – AMC is a good example of poor risk management on my part. I had successfully traded this position multiple times for small gains. Using options, I was in a position that allowed me to finally own the stock even though I profess to hardly going to the movies because of the costs and now due to the ease of streaming. All was temporarily well after the most recent earnings call – revenue was up however earnings missed the mark. At first glance I was good, the stock rose and I had a profitable position. Bur the EPS miss may have been signaling a more significant problem - AMC is spending significant mounds of money to fuel the monthly subscription service called Stubs-A-List which is supposed to draw people back into the theatres.  Long story short, I should have done a proper risk assessment. It would have led me to a 5 second conclusion: I think movies are slowly declining business as streaming is the new trend. I think once AMC stops burning cash this stock will do well…but they’ve burned bridges with me. I’ll reevaluate after the next few earnings but this won’t be a long-term position.

·          Retail – This sector will continue to be difficult to trade as retail companies are reeling from too many headwinds: 1) Amazon, 2) China Trade Issues, 3) Changing trends (like working from home and athleisure wear), and 4) decline of malls. So yes my investments into Foot Locker, Kohls, and Stitch Fix were misguided because I thought I could dip my toe into the deep end of a pool for a quick buck and hop out.  However, every time Amazon flexed its muscles or supply chain disruptions were identified in China (from the Trump admin – China trade war in 2019) it was more like jumping in the deep end and remembering you’re not a great swimmer.  The positive is jumping in with Foot Locker, Kohls, and Stitch Fix is like jumping in with 2 experienced swimmers and one newbie who poised for breakout, respectively. At current prices, these stock have likely bottomed and but the rebound will take time.  Business and Life Lesson: Always set limits for short term positions and goals and don't be afraid to adjust or admit failure. If NOT, be prepared for the long-haul.  

·          Moore’s Law – If you’re not familiar with this law you should be. This law theorizes that computer processing doubling every year and I believe that semi-conductor chip makers are sitting in the middle of a revolution – Computer’s are more powerful fueling the Cloud, 5G phones, autonomous cars, gaming, streaming, televisions and the COSTS are coming down across most of these product segments. You’ve seen me dabble in chipmakers: Qualcomm and Qorvo but there are many more like AMD I need to evaluate.  I believe it’s fueling the investment trends of the future listed above and impacts all corners of life. See these examples below:

o    Sports - I joke other areas of our lives are impacted by Moore's law and are racing to reach a most optimal efficient state. Take sports – the games have gotten faster, the players bigger and smarter, the hits – harder, and the focus is now all about DATA analytics. When I used to play Sony Playstation's Madden NFL football game years ago, I always picked a team with a mobile quarterback. Fantasy football – same trend I foresaw years ago the path to racking up passing and rushing yards is through mobile quarterback. The rationale – Football is simple à keep the ball moving forward, limit the sacks and incomplete plays and good things will happen. Well we’ve come along way from Randall Cunningham, Michael Vick, Donvan McNabb and others being an outlier. Look who’s in the playoffs this year: Russell Wilson, Lamar Jackson, Patrick Mahomes, Deshaun Watson, Josh Allen, Ryan Tannehill. They took a theme I knew back in the early 2000s when I would pick Donovan McNabb or Michael Vick in Madden…which was "OPTIONALITY".  Just like in life on every play I wanted options - in football it was the option to Run/Pass/QB run to always gain positive yards.  Funny it took the league over 15 years to catch up to the obvious or wait maybe there was something more holding back the inevitable?  Live your life like water - find the most efficient path and then always give yourself OPTIONS.

o    AfroBeats – I don’t love the name for this music genre but hey I guess if Lil Nas X is not country music who am I to judge. The mix of musical influences is nothing new to life, however; I belive the only thing that holds the flow of music is labels and the radio stations. Moore’s Law to me is like water, life will find its most efficient path and that is happening in music. Everything is FLOWING to streaming, the cloud and to blending sounds. The only people that didn’t get the memo are Country Music execs in their denial of Old Town Road, but strangely I hear there are country rappers now. 👂 But back to the message: Amazing artists have blazed a path just like artists did in in Electronic/EDM when they infused the electronic sound with pop artists (unless you were tripped out...who wanted to listen to music with no words). But now African artists are getting their shine. Not sure what took so long because the music has been so good and so rich for so long (clearly when I would attend African parties or watch music videos during my trips to London). So now I’m happy to see really good artists blowing up mainstream:

§   Davido - Fall

§   Burna Boy – Ye

§   Koffee – Toast

§   AfroBeats – Drogba (Joanna)

§   Wizkid – Come Closer

§   Rotimi – Love Riddim

Props to Akon (Senegal), P Square (Nigeria), Rihanna (Barbados), Nicki Minaj (Trinidad and Tobago), and French Montana (Morocco) for continuing to blaze the trail. Even more than ever, we have African and Carribean infused music being played all across the world. Thanks to the streaming outlets for giving the people what they want. So prepare to be disrupted in your life - it's inevitable. Take Moore’s law and the music industry - disrupted Radio music execs and stations who always want to rinse and repeat music about cash, drugs, and sex now have to compete with the endless amounts of music on YouTube, Streaming outlets and Satellite Radio. This is a good disruption because allowing music to easily get out into public brings variety (and a many bad viral one-hit wonders) but I wouldn't have it any other way.  Our society and culture… are so much more that power being in the hands of few trying to curate our lives one song at a time.

Stay tuned - I'll post soon about the fear of World War III and the impact to your portfolio in case you haven't been watching Oil + Gold prices and stocks skyrocketing