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Investing In Yourself
– Using Pillars to Build Your Core
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Setting Budgets +
Saving for Black Swans
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Diversify your Life
(Mind, Body, Soul, + Investments)
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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.
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 21st 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 3rd 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.
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