|
Stock Card's Founder and CEO invited Dr. Alex Koh from the Family Investments YouTube channel to dig deep and research Fastly's stock. There is a surprise stock pick at the end of the video. It may or may not be Crowdstrike (CRWD)! Disclaimer: Stock Card, Inc. and Family Investments YouTube channel have an ongoing marketing partnership, and Stock Card sponsors some of Family Investments' videos and content.
Investing in promising innovations that can potentially shape the future could be one of the best long-term investment strategies. One prominent example is the Electric Vehicles market. Electric vehicles date back to the 1830s when the first generation of eco-friendly cars came about. Later on, companies like Tesla brought the technology into the limelight and made it somewhat affordable for mass production. Since then, the wave of fuel-efficient and low-emission cars has spread to all types of vehicles, including heavy trucks and trains, and the technology has even spread to adjacent markets such as electric spacecraft!  To become a part of such an innovative market, one can invest in the growing electric vehicle companies for several years and benefit from the long-term price appreciation. How do you find such companies, especially those that are not yet well-known but are developing the critical components of this truly future-defining industry? When we say "electric vehicles," one would almost immediately think of Tesla! However, even though Tesla is one of the leading companies in this market, some well-established automakers such as Volkswagen, BMW, and Nissan, have entered into this new market as competitors. And, the story doesn't stop there. Who builds the batteries, the software, and other components that enable this industry? To answer that question, Stock Card team (Shama Patwardhan, Head of LiveOps and Raj Arora, Research Analyst Intern) dug deep into the industry and identified the companies that are enabling the “Electric Vehicles” to evolve and grow. Our research methodologyInvesting in the electric vehicles industry is not limited to just EV manufacturing companies. A large number of companies support the supply chain, which qualifies them as potential investment choices. Investors may find hidden gems among these lesser-known companies. We began our research by mapping all of the different markets associated with the electric vehicles manufacturing process. We looked at the various components manufacturers, electric car charging businesses, lithium-ion technology-based battery manufacturing companies, lithium miners, and software development that powers electric self-driving cars. Here are a few markets associated with the “Electric Vehicles” collection:
ResultsAs we wrapped up our research on electric vehicles, we discovered close to 100 companies that belong to the "Electric Vehicles" collection. Before jumping in, let's remember that this market is still relatively new, and investing in rapidly evolving but new technologies come with inherent investment risks. For instance, manufacturing electric vehicles requires a significant investment in the infrastructure, which may get delayed or impact investors' short-term returns. Moreover, several companies on this list are still in the early stage and do not have a commercial product (e.g., Nikola Corp). Investors may need to stay invested and be patient with their investment through several possible volatile periods before the investment pans out. Keep those risks in mind and explore our new "Electric Vehicles" collection to discover investment-worthy companies to add to your watch-lists and portfolios Disclaimer: Stock Card team owns shares of Tesla.
When there is the wind, you can either build a wall to protect yourself or erect a windmill to harvest it. The stock market is volatile, and most good investors learn how to "build a wall" to protect themselves from volatility. However, great investors learn to harvest it.
According to Nassim Nicholas Taleb, the author of Antifragile, whatever that doesn't like volatility, is fragile. A teacup hates sudden movement because a sudden change means the demise of the teacup. Similarly, most stock market investors hate market volatility. There is an entire financial services industry built to create teacups, stable, low-volatility portfolios. Diversification is a classic example of "teacupification." Financial advisors and experts take clients' money and put in a diversified portfolio. They also ask the clients to be patient and give the portfolio enough time to overcome the volatility. Less risk, less reward, and longer time horizons are the typical ways investors deal with volatility. For my entire life as an investor, I have been in this camp.
Avoiding risky stocks, such as recent IPOs, and giving my portfolio time to let volatility pass have made me an excellent investor. The evidence is my "Roll With Our CEO" portfolio. On Average, it has outperformed the S&P 500, the leading benchmark for gauging performance. I have overperformed the market, which is excellent. However, my overperformance in the market is not massive. In most years, I've overperformed the market by a few percentage points. In a few good years, I crushed the market by doubling the market return. It's great! I can continue doing so, and time can heal most money losses. You can do it too. Pick well managed, well-funded winners, let them grow over the years, and grow your investment with them. A few percentage overperformances every year, over a few decades, become good enough to retire safely. But, what if there was another way. What if instead of controlling volatility and protecting your portfolio from volatility, we could erect a windmill and harvest it?
Introducing the "Windmill" portfolio
The windmill portfolio is a portfolio designed to harvest market volatility. It is built on the foundation that risk is reasonable and must be harvested not mitigated. Four pillars guide me in the creation and management of this portfolio:
With those criteria in mind, and as always, I would document and share my assessment of each stock added to the Windmill portfolio with our VIP subscribers. Make sure to follow the portfolio by clicking on the bell icon on the top-right corner of the portfolio page. I will also add the decision to my "Roll With Our CEO" portfolio since that portfolio includes every decision I have made since November of 2014. Roll With Our CEO portfolio is my overall report card as an investor if you'd like to call it.
The Coronavirus pandemic engulfed the whole world at the beginning of 2020, bringing all economies to a standstill. Offices and stores closed down to prevent the spread of the virus. Developing, producing, and distributing a cure and vaccine to immunize the world population became a race many pharmaceutical companies have embarked on. Consequently, media, investors, and traders have been speculating, discussing, and pouring money into those pharmaceutical companies. The hope for a vaccine has fueled unprecedented market volatility we have rarely seen in the recent market history. After all, there is a race going on, the race to COVID-19 vaccine.  The launch of "COVID-19 Vaccine Race" collection In May 2020, the United States government introduced a framework for 'Operation Warp Speed,' a national program to accelerate the development, production, and distribution of COVID-19 vaccines. The program aims to have the vaccines ready by January 2021. More than 100 biotech companies began investing in the development of vaccines for the COVID-19 virus in the first quarter of 2020. According to the Federal Drug Administration, as of June 2020, there have been approvals to more than 25 companies to fast track the development and testing of their vaccines. And, another 141 companies are still in the development phase. Our research methodology As always, the Stock Card team took on researching the most viable investment opportunities that our users and community must add to their watchlist, if they plan to participate in the race to the vaccine. We investigated different activities that support the development, production, and distribution of a vaccine and added a list of companies involved in the process to our collections and themes. This list enables you to discover promising companies to invest in easily should you choose to participate in the race to the vaccine. To create the "COVID-19 Vaccine Race" collection, a lot of research went into understanding the whole process involved in the end-to-end development of the vaccine, and the pre- and post-vaccine steps required in the process. We identified all the industries and markets which play crucial roles in making the vaccine a success. For example, one of the primary core markets is the vaccine components and raw materials. Our research found a high demand for vaccine adjuvants, which are essential in any vaccine. Few other markets that are discussed less frequently but are as important as the vaccine development are the companies involved in the vaccine production, including glass vials, cold chain logistics, and syringes, and needles. Therefore, the race to a vaccine isn't only about Vaccine development and encompasses an entire ecosystem of companies working together to take the global population to immunity destination. Here's a list of the primary markets vital to the vaccine development and distribution: Results In the race to the COVID-19 vaccine, the competition between companies is fierce as all companies strive to win. We put together a list of 60 companies, accelerating their development to win the race. Some of these companies may be very small but watchlist-worthy. Some are large and stable, with several products already in the market. Start your research by visiting Stock Card's COVID-19 Vaccine Race collection. You can always add additional filters to narrow down the list to your portfolio's most suitable stocks.
|
Archives
July 2022
Categories
All
|
RSS Feed