Back in 2001, when I first became interested in investing, I called a brokerage firm who told me I would need at least $2,000 to invest with them and pick my own stocks.
$2,000 was out of reach for me to invest at the time, so I stayed a non-investor for several years, until 2017 when I became a partner in a successful web business.
With my newfound income and companies like E-Trade allowing an account with any opening balance, and with all the uncertainty in the world, I have decided to participate in the stock market in sectors I see as emerging mega-trends that have tremendous potential upside over the next several years for early investors.
Check it out! We are up, across the board. Even GE is doing better than when I bought it, as of January 11, 2017.
Here is the official score card:
All that green is a sight for sore eyes, considering the setbacks I’ve faced in my crypto-currency investing / gambling so far.
Which of These Winning Stock Picks Weren’t My Idea?
Existential questions about whether any ideas are really “mine” aside…
To give credit where it’s due, the ADI and DATA positions were recommendations from Paul Mampilly’s Profits Unlimited service.
And the FL stock was a seasonal investment recommended by Paul’s colleague Chad Stroop, in his Automatic Profits Alert offering.
I will be adding a couple more recommendations from Paul to my portfolio soon, as he keeps unearthing more winning companies associated with emerging mega-trends. However, I will not disclose those publicly, out of respect for his service. I’ve done so for ADI and DATA only, to show you concrete evidence of success from following his picks. By the time you read this, it might be too late to make many gains on either asset, so please do not take these as recommendations to buy… this is more of a simple reflection piece… an entry in my financial journal, if you will.
ADI, Analog Devices, is a semiconductor company specializing in signal processing and other areas that will be instrumental in bringing the Internet of Things (IoT) to the agriculture sector (the Internet of Tomatoes!).
DATA, Tableau Software, is a data visualization company, that helps companies make their data more useful and actionable. They are a leader in that space and will likely continue to grow and perform well as big data becomes even bigger.
FL, Foot Locker, was a seasonal investment I did on a whim because Chad Shoop seemed so darn confident about it. As you can see, it’s the smallest part of my portfolio. I’m itching to sell, sometime between March and May, because I don’t like holding things that I don’t understand.
However, I do understand that their exclusive deals with Nike could be great for FL this season, and who knows? Maybe I’ll get bit by the seasonal investing bug.
However, my main focus now is long positions that I plan to hold for at least a few years.
Why Did I Buy General Electric Stock?
Yes, their stock plunged over 40% in 2017 while the S&P was up 18%. So why did I buy?
Because they look like they are headed in a positive direction, according to the drastic cuts the new CEO John Flannery is making, including potentially selling major assets, and…
because their insiders did.
And because it’s GE. If they are really doing as much restructuring as they say they are, there’s no way they will keep doing worse. And if they get on board with emerging mega-trends, which they seem to be for example with a 3D printing investments, then GE could see a bull year in 2018, and if they keep improving after that, I’ll keep holding.
I Bought AMD Because…
Advanced Micro Devices make computer hardware and is a direct competitor to NVIDIA. I vaguely recall discovering AMD while researching NVIDIA, and seeing that their Glassdoor reviews weren’t too bad, so I went ahead and bought some. Speaking of Glassdoor, that brings us to:
The Secret Behind My Two Most Winningest Stocks
In his audio program Passion and Purpose, Whole Foods Market founder John Mackey espouses the belief that following passion or a great service, or your bliss, and especially having a great work culture and being a good company to work for, is better for a company’s bottom line than focusing on the bottom line itself.
He mentions that if you look at the stocks of the companies rated the best to work for, they typically double the rest of the stock market’s performance.
I’ve always cared about how companies treat their employees, after having been a fairly disgruntled Pearson peon (not unhappy that I never took them up on their stock matching program), and feeling that companies should not flourish if they overwork half the staff and undervalue talented others who are sitting on the sidelines, bored and frustrated with an obviously dysfunctional approach but not willing to speak up because their boss will literally yell at them.
NVIDIA and Facebook employees love working for NVIDIA and Facebook.
And both companies are big, in the emerging tech mega-trends of semiconductors and AI, respectively.
I don’t think it’s an accident that these two are up 14% and 22%, and doing better than all my other stocks.
When a company is good to work for, it does good work.
I’ll keep looking for that sweet spot, of companies that dominate big trends and are great companies.
By the time you read this, I might have bought other stocks and maybe my portfolio won’t be all winners. I can’t predict that with absolute certainty, especially since you can see that some of my picks are “educated guesses” at best.
But I will keep learning and reporting what I’m up to, and why I’m up to it!
Wishing You Infinite Abundance,