I want to share my high level thoughts and conviction investments before I renuciate all capitalistic pursuits in exchange for a simple life in the mountains. I will be off the grid until March.
The purose of this blog entry is to help us both gain a visceral understanding of why I have *faith* in my investments. This will serve to fortify my emotional state for when the inevitable uncertainties of long-term commitments arise, and maybe spark some ideas of your own.
The cat is out of the bag. In 2016, a reality TV host became President of the free world. A ruthless capitalist usurped career politicans to take the White House. In 2018, Bitcoin and other digital currencies established themselves as players inside the financial ecosystem.
Together these events called into question the role of nation states, their alleged leaders and the ability of these leaders to force their will upon the collective consciencness of humanity, democratically or otherwise.
Enter 2020, a period of economic prosperity the likes of which no living human has seen. We are tracking the PHLX Semiconductor index closely, which has been validating our theroy about what is driving our current economic expansion. Learning computers. Only a handful of companies are at scale and positioned to capture most of the growth. Foremost are big tech companies. Champions of the interwebs. It is becoming apparent that the CEOs of Big Tech are the true leaders of the free world and the only ones progressing society in a positive direction.
My two favorite CEOs are Elon Musk and Jack Dorsey. I hold reverance for them both and emulate them in my own endeavors. Elon puts his net worth on huge issues facing humanity and makes it sexy. Jack is a modern Cato the Younger. Humble and pure. Twitter is the subconscious inner dialogue of humanity and a must own stock. Twitter is my #2 largest position behind Tesla.
With nations and their politicians losing a grip on society, what are affluent left to do? They love having a seat at the proverbial head table. They have little choice but to take to the public markets and secure what stake they can afford in the equity of these giants. Names like Microsoft, Apple, Alphabet and Amazon. These are conviction investments. These companies are countries, only more powerful.
Supply of quality tech equity is low. Have you ever played Monopoly? There’s only one winner. There are only a handful of companies worth owning. Their share prices no longer make sense using historic valuation methods. Those were more simple times, when businesses merely bribed or lobbied the state. Now these firms are the states.
Amazon is a ubiquitous nation that doesn’t care about the silly lines drawn on maps by humans reverting to their animalistic ways. This is Jeff Bezos’s world. We’re just living in it.
Next up is the battle for who will feed the ultimate consumer—the hungry American. Heading into the ’20s there are only a few companies at the distribution scale needed to augment the way food winds up in people’s kitchens and ultimately their bellies. Obviously there is some crossover here with Amazon, which is why Amazon is an absolute MUST OWN. A rumor is passing through one of our affluent neighborhood that the entire Kroger organization is being tailored for am Amazon buyout. The origin of the rumor is salient enough that I am all for investing in Kroger.
The other top players in autonomous grocery are Walmart and Costco. Both must owns.
Finally we circle back to digital currency. You would have to be insane to ignore this asset class. Foremost, I believe ownership of Facebook shares is necessary until we see resolution of their Libra scheme. I cannot wait until Mark Zuckerberg can reward us Libra coins for good behavior on his platforms. I believe this will put an end to fear mongering, spreading lies and hate once and for all. There is something pavlovian about our egos, even the most masculine. Look at how many rough and tough guys are going vegan after that Netflix documentary (Netflix weilds an interesting sword in modern society, but they do not make my conviction investment list). Libra could end up being the global reserve currency, should it succeed in going live. Even the toughest 8chan shit poster will fall in line for some Libra coins.
Every investor should have a portfolio of digital coins. I must admit I am not sophisticated enough to have clarity on exacty which coins. I hold bitcoin, bitcoin cash, bitcoin SV, ethereum and EOS.
There you have it. These are my high level thoughts and conviction investments. Perhaps a few weeks of sleeping on the cold earth and breathing sweet mountain air will reveal another. My fate is unknown, predetermined by the gods. Maybe while in the mountains, I will be granted a peak into the doors of Valhalla and handed stock picks from the norse gods.
Thank you for your time,
Raul Santos, February 14th, 2020Comments »