Margin of Safety Leads to Big Time Gains - Micron | Snap | Dave Busters | Roblox | Zoom Media

 Hello and a very happy Friday to all. It has been a busy, very busy and blessed year so far. As I mentioned in my last post, I welcome my first son and our last child to this world. So many prayers and blessings for him as he enters this amazing world. I'm watching my kids, my businesses, my friendships, and my mind grow --- and it makes me smile. My goal is to stay positive and push positivity out into the world but being that I specialize in 'risk management' I still find myself constantly trying to create moats to protect that things that are most important to me. We'll delve more into this topic into the future, but I'm curious how do you think about creating moats and protecting things you value? 

I'll take this topic of protection and spin it back to my investments. I will not lie to you 2022 -- has been a year of minimal investments on my part. The first reason is my technology business has been growing leaps and bounds so I've focused my energy here. Secondly, you'll recall that I began to get very cautious on the markets last year and into early this year. I was a bit slow but look back and read, I moved my entire retirement funds out of stocks. I'm not trying to time the market per se, but I am trying to create a moat. Game of Thrones analogy --- If you see a dragon coming, I think you should get out of the way. As some of the investors in my Mansa Musa network have mentioned and I have tried to share -- when the Federal Reserve is raising rates, you better get out of the way. Now to be transparent, my personal stock account is still active and for the most part I am completely exposed to stocks. So I've taken the SAME losses as you -- and anyone who tells you they haven't lost money is basically lying, I call CAP, as they say nowadays.

So how do I change my strategy:

1) I slow down my investing and research more (Example: If you can't pass the test of if I can $10K would I put it all in one stock -- then don't buy the stock)

2) I create a bigger moat, or cushion for loss. (Example: If I like Snap at $8 - I think $7 in this environment is better cushion

3) Don't rush to trade quickly -- Like love, there is no need to be in a hurry.

Here are my trades for October. Many of these were made months ago. The important thing to notice is I got the amount of cushion right. I'll leave you with SNAP. I bought SNAP when the stock plummeted, then is moved up nicely and now they just recently reported earning and plummeted again. The good thing was I bought in with margin of safety (i.e., moat or cushion) that allowed me to withstand all that volatility).

Finally - Don't gawk at the wins, because every trade and every month does NOT turn out like this. But the goal is to try and achieve consistency like this.

Peace and love to and more lessons to come.

#Urbanomics #getthebag #Micron #Snap #DaveandBusters #ZoomMedia #Moat #marginosaftey

When to Buy: Playing Offense | Side Hustle 101: Pay to Play | Moral Vote

 

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) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Coming soon is a post on Health -- The Body. You have to invest in and know the data about your body. Like many people of color, I get nervous about hospitals and doctors. Thanks to my corporate job, I was exposed to annual exams and blood tests. Unfortunately, when I made the shift to being an entrepreneur I didn't keep up with my annual exams. And it may be costing me...stay tuned for a future post on Health and how that impacts your Wealth. 

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

When To Buy A Stock - Go On Offense 

Learning From David Tepper (Street Cred: #ABilliSquad Member Net Worth: $14.5B, When He Speaks Markets Listen, Owner: Carolina Panters; Charlotte FC (Major League Soccer): David has been a buddy for a long time. If you search my blog, he was instrumental during the financial crisis of 2008. When many were scared or unsure, wondering if the horrible housing bubble would ever end...David spoke calmly about what the Federal Reserve was doing and the fact that it was "Game On". He signaled it was time to be less afraid and start investing and that's what we did here. By following David's advice, we start investing around the lows of the market and our stock portfolios benefitted greatly.

So I wanted to share the following snippet from David for my "When to Buy A Stock" series:

"Tepper says big market corrections create big opportunities for investors and they need to spot those opportunities to become successful in investing.  

The investing legend advises investors to remain updated on all the market information and conduct thorough research before investing in a company to understand the best opportunities available."

Source: By Anupam Nagar ETMARKETS.com

Thanks David and in case you didn't completely follow what he meant, here is a "Detail" breakdown:

Market corrections create big opportunities - For us regular folk that don't speak Wall Street, he's simply saying to find opportunities to buy stock when the market is off its game.

What is a Correction? Try these example(s): 

a) When LeBron James, Serena Williams, or Tom Brady has a bad game (aka: market correction), INVEST -- they are ballers and will bounce back.

b) When you stand in line for hours on Black Friday freezing waiting for low priced deals (aka: market correction), INVEST -- buy that TV because those rock bottom prices are temporary.

This week I have 8 stocks that will expire profitably:

Tegna (TGNA) - Bought months before the elections when they media companies were at their lows. This is a hedge the stock will trade higher, as I have a big position in TGNA

Navistar (NAV) - Shareholders, like myself, approved the takeover from Traton. Small, but nice profit made here

P****** - This is a subscriber alert stock. We have a big position and continue to go on offense in this position.

Wabash National (WNC) - Small position, our play is to if things can continue to re-open...trucks will be on the road.

Viacom (VIAC) - Still on offense in this position. Read my previous posts

Roku (ROKU) - Still on offense in this position. Read my previous posts; This is a hedge and will be profitable by the end of the week

Snap (SNAP) - Small position, Snapchat is finding ways to make money off advertising and it's working

Palantir - I keep hammering this stock. I told the doctor who took care of me that Government, Cloud, and Security are forces that are converging.

Roku - So nice, I traded it twice 👌

#getthebag

Side Hustle 101 - Know Your Worth

1) Someone's Listening - Skipping College Sports Isn't Insane 

Why I'm Reading: Someone's listening. To keep it short, this article is about a league being developed to COMPENSATE high school athletes in a development type league prior to them being considered or drafted for the National Basketball Association (NBA). Again, I've been a broken record - NCAA makes money, colleges make money, coaches make money (and have radio shows)...the players are one injury away from devastation. On top of the fact on 3% of college athletes will make it to the professional leagues. I can sincerely say they ARE NOT being paid their worth.

Link: The game plan: Elite players find paths to pros besides NCAA (msn.com)

Prism - Voting is a Moral Issue

1) When I Lost I Shook The Opponents Hand --- I Didn't Get Revenge 

Why I'm Watching: The Ken's did an amazing job a few weeks ago. They used their muscle to alert the business community of a troubling development. A business community that was slow in it's initial response because businesses usually stay outta of it. Laws being developed across the country after record voter turnout. As a technology subject matter expert, I find it interesting we can use our mobile phones to securely gamble on sports and even purchase lottery tickets. Oddly, voters lines remain long, drop boxes are constantly argued, and more not less restrictions are being placed on this pillar of democracy. Making "progress" in our voting process doesn't mean you have to be progressive. Thank you Ken Frazier and Ken Chenault.

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