#MansaMusaMentality
#BreakfastClubforStocks - get your Sherlock Holmes on with news, reports, and data for stock investments ideas
This post is a part of my #MansaMusaMentality series and how I invest. Almost like case studies (known as "Details"), I'll highlight how I invest in assets such as real estate, stocks, precious metals, cryptocurrencies, etc. And I want to foster a community culture, so I'll show you how I learn from them and maybe in the future we can crowdsource or here we call it #tribesource investment ideas for the future.
"Detail" - A Breakdown of my AMC Entertainment Holdings Inc (AMC) Investment
Year(s): 2019 + 2021
Throwback Link(s):
March 2019: 2019 Investment In AMC
This "Detail" is about how I found this investment. Quite simply, I kept my ears to da streets. My life is not dedicated to stocks because it's not my main hustle but I do my research, use my network of connections, and make smart informed decisions. Because I've amassed a nice investment empire, not the size of Mansa Musa, I'll be damned if I leave it to someone to manage and eat all my profits. I (AND YOU) can manage your money yourself. Just like how I listen to the Breakfast Club for the culture, I listen, read, and aggregate data for that stock culture. Again, if I have time for the Breakfast Club morning show with Charlamagne tha God... I can also make time for my stock version of the Breakfast Club. What's your excuse??
I won't be putting this stock in my #MansaHallofFame because at the end of the year I strategically sold off most of my shares to offset the fact I had such a 2020. This tax season would have been painful if I didn't use the losses I had in AMC to make it seem like I didn't have a big year (this is called Tax-Loss Harvesting, yes its legal, should out to my accountants). Ironically, if I hadn't done the prudent thing and sold off that position this would have made my #MansaHallofFame list of investments.
So how did I find this stock? I got my Sherlock Holmes on and did my own research. I keep a log of my research and ideas so don't test me.
How do I get my Sherlock Holmes on? Depending on your age you might prefer: X-Files, Murder She Wrote, Columbo :) Here's what I found:
Stock Investment Idea: AMC Entertainment Holdings Inc (AMC)
Investment Takeaways: Notice in 2019, before the pandemic, I found a nice investment giving out a great dividend (a dividend is like getting a stimulus check every 3 months just for owning the stock) I was getting 4 checks a year from AMC just for owning the stock. With blockbuster Marvel movies coming out every week, this is something I traded based on what I saw around me. I knew there was a growing risk as streaming was getting bigger but I wasn't a heavy Netflix user at the time and Roku was still not a household name, IMO. A quick note, this was my own personal research, #BreakfastClubforStocks. You have all the links of what I was thinking back in 2019 and since then. Yes, you are smart enough to invest in things you use everyday...chances are others use those products and they may make great investments.
Outcome:
I'm not going to get to technical but you read above that I sold off my AMC position at the end of 2020 which actually helps me reduce my taxes (advanced class moment). So the IRS in their tax code requires that I wait 30 days before I can start buying the stock again (Tax Loss Harvesting). Rules are rules and we follow them.
But I was getting antsy and looking forward to rebuilding my AMC position. Why - because of 2 things:
1) Can't Nobody Tell Me Nothing Syndrome - I had a friend that told me even while my state was in "lockdown", their spouse was itching to get out and watch a movie in the theatre . I can't recall if they went (I think they did) but this reminded me not everyone views the pandemic the way I do. Many want to get out watch movies, eat at restaurants, and fly on planes -- even with the threat of the virus around. So what will happen once we can finally get vaccines in arms --- people are going to go crazy and forget they have homes for a few days.
2) CEO Goes on National TV - The biggest indicator it was time to establish a position in AMC Entertainment Holdings Inc (AMC) was when Adam Aron the CEO of AMC went on national TV. He said the company just received enough $$$ that takes the risk of bankruptcy off the table. This is a game changer combined with the fact that in Point #1, people will want to eventually get out of the damn house and just do something. Unfortunately, I was 5 days away from being able to purchase this stock in my primary portfolio. So my only other option was to use my retirement account. I added AMC after that pivotal interview and the rest is...how do you say, history.
For the Culture:
AMC Stock Chart on 1/28/21:
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