Charting a Path of Firsts

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

Black History
I truly believe to be great you need a strong understanding of the past. To be legendary, you must chart a path that has not been taken or is fraught with obstacles. I was reviewing a statistic that truly blew my mind -- One Hundred and Fifty years after the US named it's first African-American senator (Hiram Revels) only 9 other African-Americans have been nominated to that post since then.  Why?  This Can't Be Possible?

In the era where I hear about corporate and government initiatives to Lean-In further and to focus on Diversity and Inclusion, I wonder why asymmetric numbers like this exist -- not only in our US legislature but also in our college ranks, corporate executive ranks, and across profit and non-for profit board ranks.  People ask: "Do kids know?" and the simple answer is yes. I knew that disparities existed in life that no one wanted to talk about -- except through not so helpful methods of the real world: a) scared straight lecture in Middle School (told look left and right only 1 of us would make it); b) being harassed by police right AFTER participating in Big Brothers/Big Sisters charity event with my little mentee (a charity event I posted about here over 10 years ago); c) glass ceilings I observed at work when you can count the number executives of color with your fingers and toes.  While the cool buzzword is to blast through ceilings, the truth is these institutions so well entrenched that many people cannot simply blast through this road alone, they need help...a different path.

I argue you need to chart a path that goes around the status quo. A diversified path that gives you OPTIONALITY -- options when glass ceilings rise. Like Hiram Revels, the first US African-American senator, you can learn from his path to Washington in 1870.  His opponnents challenged his ability to serve as a Senator because Dred Scott (a case that determined African-Americans were NOT citizens) was only overturned a few years before. Prior to that roadblocks back then forbade the ordained minister from "preaching" and "teaching" people that looked like him.  Revels was recruited to run for the Senate because of his education, influence, and awareness of the real-world that surrounded him.

He is showing you a path -- Education, Build influential relations, and solidify your core pillars that I write about here to be more self-aware of the real-world that surrounds you with obstacles no matter what your race, color, or creed is.  Reduce your debt, live within your means, diversify your income streams, education gives you options.

Alibaba + JD.com
One way that I have diversified my portfolio is by increasing my exposure to Chinese stocks. To some this may sound scary as you often hear the numbers and data cannot be trusted that come out of China. I won't allow my portfolio to suffer from the same mistakes I see in policy that I noted above. My journey of wanting to own businesses in mainland China started through my research of high-flying technology companies. First I stumbled upon Baidu, dubbed the Google of China. I sought out the feedback of a former colleague who was from China and he acknowledged that it was his preferred site, along with many others.  When it came time to invest in Baidu, I was scared and didn't go through with the investment. I watched Baidu take off soon after I vowed to participate as others came along. That's how I found Alibaba (BABA), the Chinese version of Amazon. I would occasionally follow articles of the charismatic leader Jack Ma and as you can see in my previous posts, I pulled the trigger on BABA. I was able to get shares very close to IPO price, or the price when if first became a public company on the stock market ($80 dollar range). My only dismay is that I didn't load up back that as BABA trades for roughly $200 today. So I set my sites out for the next high flier, JD.com (JD). JD.com is in my opinion like the little brother to BABA because it is also in the e-commerce space and also growing fast. Oddly, the Trump Administration's trade war with China depressed my investment in JD for much of last year to the point it made my worst trades of 2018. But I recognized the importance China plays in the overall global economy and once the trade war tariffs were essentially rolled back to something much less meaningful -- JD has taken off from my initial range of $30 to now settling in around $40.  I will be looking to add to both of these positions that I own, BABA in preferably $160 range (it ain't going back to $80) and JD on any meaningful pull back I find.

Be Great   Be Thoughtful   Be Diversified    Always Have Optionality

Gilead Sciences Inc (GILD) -- A Possible Solution To Coronavirus

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

How Are You Feeling -- It's Lit!
This month, I'm still riding high as Symantec/Norton LifeLock and Sprint have me toasting for more good luck to come.  Norton Lifelock offered shareholders a special dividend of $12 this month so you guessed it...we goin' to Disneyland just like Patrick Mahomes said after winning the Superbowl MVP. If you're not good at math well here goes -- if you owned 100 shares you got a $1200 deposit in your and let's say you owned 1000 shares, well you guessed it -- you'd be getting $12,000 for betting on a stodgy OLD cybersecurity company. Sprint and T-Mobile have just announced the deal will likely close by April 1st so in my world of Risk Management...there are NOT many more obstacles to overcome this deal closing as one of my biggest investments in my life closes. I hold Sprint in both my retirement and personal account and Norton Lifelock just contributed only to my retirement account.

Stop Reinventing the Wheel -- Learn From the Greats
I often joke with people that by speaking positive vibes into the world -- you can speak things into existence.  So one of the biggest lessons I've learned over time is to read and research how other greats have walked. I call it the Lexus philosophy. I recall a Lexus executive speaking at a roundtable series in college and I thought the building blocks of the company were simple and smart.  They knew who did what well. By this I mean, he noted that: German's had great engineering, American's dominated in design, and the Japanese were dominant in manufacturing without significant defects. So when Lexus set out they simply decided to borrow best practices from the best companies in the business. I use this philosophy everyday -- don't overthink it...reuse it.

Black History Moment
George Washington Carver - Some called him a botanist or an a pioneer agronomist. He developed amazing uses for plants - peanuts, soybeans, and sweet potatoes. Being born a slave didn't stop Carver, he went on to obtain his undergraduate degree from Iowa State and then he accepted a job at the Tuskegee Institute where he invented and reinvented products -- more than 300 way to use peanuts to may products like soap, skin lotion, and paint. Wow - Witness Greatness
Gilead (GILD) - Repurposing Drugs for the Next Virus
Gilead Sciences is a value stock that's right up my alley. I've owned the shares for a few years and it hasn't done a whole lot. But in life, sometimes you have to be patient with just like Carver was with his crops. They had a blockbuster Hepatitis C drug that was no longer protected by patents so they enjoying the legacy riches from that investment and moving on to others. To speed up the process they invest in Kite Pharma in 2017 to bolster their pipeline. But I'm highlighting Gilead today because like Carver, I find in fascinating that firms repurpose things to create new products. In this case Gilead is using an existing HIV drug to fight a new battle against the Coronavirus. Gilead is developing an experimental drug called remdesivir and based on the numbers that continue to come out of the region, I hope the containment measures and drugs of tomorrow can assist to limit the impact of this virus going forward. The options market appears to be betting on Gilead moving higher and I could see it move towards the $80-85 range.

NovaGold Resources Inc. (NG) - Mining for Riches

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

In honor of Black History Month, for my next few posts I am going to release some of my core positions, like Novagold, and how they got there.  I have received questions from a few readers over time which circle around -- "How does someone invest like how I write here?"  At the top of each post, you'll find the basic building blocks to get you to where you need to be -- use the links to invest in yourself and your family.  You can't build a meaningful investment portfolio without a consistent source of income - like a job, a budget (that allows you to SAVE capital or funds for your investments), opening a brokerage account (to manage your investments), and physical, mental, and spiritual fitness (that allows you set meaningful goals).

As your personal finance coach, I can't begin to help you on the march to freedom without these things in place.  For example, I have a friend who was a landlord and rents their property to a tenant. The lease had lapsed and the tenant was stalling each month by asking for extensions and stating they had an interest in buying the property.  Like a personal trainer, I tried to coach this person by asking them what goals did they set for themselves? Even more simply, what is in the best interests for you and your family??  I was surprised by the pause in response, but by asking this one question it became a lot more clear what needed to be done. Put your goals first and if selling your property is best for your family's future -- get it done.

NovaGold 
Why did I invest in Gold? Well I have been investing in gold since 2008. One thing I learned during that rough time period for America was that Gold is a safe haven. Gold, like other metals and Crypto Currencies, is not a currency backed by a government which can purposefully be inflated and deflated.  So in 2008, the market was on the path to being broke so the Federal Reserve decided to pump the economy full of money. Gold is a good asset to bet that it's value may rise if you think the dollar value is being deflated (by the Fed pumping the economy full of money).  

So why in the world is Gold doing well when we are arguably in the best economic period some claim America has seen. Well #followthemoney -- Because the economy is doing fairly well, I was preparing to exit my Gold position. The Fed doesn't need to deflate (pump money into an economy doing well) so I anticipated Gold was NOT going to do well. The strange thing that has happened in the last year is that the Trump Administration has signaled for the Fed to juice or pump the economy with money -- even while its at record low unemployment. That's a signal for me as an investor that something is wrong with this thesis -- either the economy is actually NOT doing as well as we thought OR the Trump administration is artificially manipulating the Fed Reserve to juice the economy further.  While you get political -- I prefer to get rich:

Source: Google
1) I invested in Gold over a decade again. Patience is a virtue when you begin to understand the markets. Search my posts and you'll find my previous posts on NovaGold.

2) Look at this chart above. Yes, I finally stopped trying to sell my Gold position in NovaGold and let it run. If the Fed is juicing the economy, the Wall Street world hear's the signal "The Economy is NOT as strong as we believe... when the Fed lowers or does not raise interest rates".

3) The prudent side in me says, I believe the data coming out of our government and the economy is doing well. But then I can't explain why the Fed is not raising interest rates...except coming to the conclusion that they feel coerced into keeping rates low during a period of record low unemployment. So similar to my Sprint trade, I'm just going to follow the money...why guess that the government is going to do the right thing.

Final Summary: Gold runs higher as the economy cannot reach 3% GDP growth even with the Fed juicing the market, and the tax cut boost. But new entrants into the Gold space, be careful...it has run up very fast but with fears of coronavirus, the 2020 US Presidential Elections it could run even further.

Sprint Corp. (S) - Can Ya Hear Me Now

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

Self - Made

It is February and in honor of Black History Month I want to take a moment to pay my respects to Madame C.J. Walker. In movies and music, we often boast about being the next Tony Montana or Jay Z hustlin' our way from rag to riches.  But the reality is more people would be better off following in the footsteps of Madame C.J. Walker. A woman with an amazing work ethic, she went on to be the first -- let me repeat myself -- the first woman in the US to be a self-made millionaire (no handouts). She was an inventor, businesswoman, and philanthropist, so I can just hope to reach 2 outta 3 on that list.

My path to being self-made may take a different road but I challenge myself often by asking why not me. To quote the great Fat Joe, "Nothin' Can Stop Me I'm All The Way Up".  But back to the lecture at hand.  My goal is to continue Sprinting to greatness...and yesterday I was elated when I saw in my Google news feed that the merger between Sprint Corp. and T-Mobile would finally be approved.  It was one of those moments when you say, "How did Google know I was interested in News About Sprint?"...then I read the headline, screamed for joy, reached out to family and friends and realized I'd deal with Google on another day. Why - Because Sprint Corp. was up over 75% for the day thanks to the judge's final ruling on the merger with T-Mobile. Sprint has my 2020 portfolio and retirement gains literally off to the races.

I guess the feeling is similar to a poker player pushing in a large amount of chips. It's agony waiting for the final card to flip over but when it hits and you realized your hand is the best -- the rush is like none other. I laid out the bread crumbs over the course of the last year, here is a quick recap of how Sprint put me in the limelight because I trade tight...time to get paid blow up like my last trade:

In May 2019 I wrote the following: And Sprint (S), Sprint keeps getting offers to play overseas for T-Mobile but the FTC (like the stock version of the NBA Commissioner) is telling me that the deal is unfair. Funny he doesn't say that to Verizon or AT&T the biggest cell phone carriers. Let a player get his money Commish?!?!  Approve the deal and let me bask in the glory of my draft pick prowess.

December 25, 2019, I followed up and said: Final Summary -- So even though I empathize with the states, it would look bad if the Sprint deal falls apart only to have that company FAIL in a few years. That also would result in the industry consolidating to 3 major players and the same concerns return over customer pricing. I've made a small bet once again on Sprint that this deals get done in the New Year.

December 31, 2019, you caught me saying:  Sprint (S) - Played options very well (now letting the profits ride on T-Mobile deal approval will be biggest gain if hits)

But I was most proud of the detailed analysis I shared back in July of 2019. I told you to follow the money. Like a budding NCIS agent looking for clues, I laid out ALL the evidence in a detailed post:

The contrarian in me points out two simple facts: 1) Capitalism - the deal gets done b/c a lot of people stand to make a ton of money (it is convenient Sprint's commercials say they are doing well, but the Execs say the business is declining).  I do not usually have time to listen to quarterly conference calls but I found it MORE interesting that Sprint executives have been putting their houses on the market since the end of last year. How about the fact that the Corporate Office has already been sold. 👀 Strange this has all happened and the deal is NOT even complete as of this post.  2) Less Choice - Prices have been declining ever since T-Mobile took the American wireless industry by storm with good ole "competition". So you go with the contrarian view that Verizon, AT&T, and the market has had enough of its decline in revenue due to T-Mobile's entrance and the smart investment is for them to buy Sprint. The only thing is how do you sell it to the public. 😇 Well, the Department of Justice (DOJ) has supposedly negotiated a deal for T-Mobile to sell excess spectrum to another party to create a new 4th major wireless carrier. Wait for it...who can't wait to buy cell phone service from Dish Network 💪💪

Urb Lesson of the Day: Everything and everyone has layers. Take time to peel those layers and get to the obvious truths in life. I traded Sprint multiple times in the last 7+ months and tomorrow's announcement will eventually lead to the closure of my outstanding trades.  Disclosure: I own Sprint (S) and by trading from the bottom up...I followed everyday clues hidden in plain site to reduce my risk on what some called the "unlikeliest" deal to get done.

Executives Sell Mansions Before the Sprint Deal is Done: Follow the Mansion Money

#followthemoney       #datadriventrades         #investandchill

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.