MarketWatch #6
Disclaimer: MarketWatch is for entertainment purposes only. It is important that ALL investors conduct their own market research to determine the best investments for their portfolio. Please do not blindly follow me or any random person on the internet, there are professionals for that. MarketWatch is intended to give you insight into my investment portfolio and my analysis of each investment that is discussed. Please feel free to share any comments or questions below.
There once was a farmer who decided to plant seeds for harvest.
First, he drops seeds on a path - The birds come and ate them.
Then, he planted the seeds on rocky places - Nothing grew.
Next, he planted the seeds among thorns - The seed suffocated and died.
Finally, he planted the seed in good soil - He saw the crop grow x10, x20, x100.
This is one of my favorite Bible stories because it shares an important sentiment with us as investors.
We have the dignity to choose where we invest our money (seeds), but those choices come with consequences that can be either good or bad.
This story helped me to understand that there are different ways to invest, and those investments will result in different outcomes. We have the choice to put our hard-earned money in good soil or take our chance with the birds, rocks, and bushes. Today, I’m going to share 2 companies with you that I believe are fundamentally bad soil. Then, I’ll share a company that I believe falls under the “good” soil category.
This community is here for conversation about investments, please share your thoughts about this in the comments below, and don’t be shy to disagree. The best decisions that we make come after a thorough vetting of the options and it is hard to see all of the options if we are only seeing them through our own lens.
Chevron (CVX): The ROCK
Oil has been the pinnacle of investments for a very long time, dating way back to the Rockefeller dynasty — Now, it’s losing value. We have seen the damage this commodity has done to people in the form of greed, but now people are losing their patience for the damage it does to our environment too. Electric vehicles are becoming the norm and in 2035 major car companies have already decided to leave the old method of transportation in the past. Chevron and all of the other oil giants are on sale right now, but the next step is the clearance rack, after that, they will be gone for good. Don’t let your money follow them!
General Motors (GM): The THORNS
GM is among a long list of companies who plan to leave their oily cars behind, but does that mean they are a good investment? I challenge that it doesn’t. With the tech industry and car industry now being intertwined, I don’t believe the “old” car industry is in the best position to adjust its entire business models and practices to work in the new tech-driven car industry. Whether it’s their mega factories, horrible labor conditions, or simply the fact that they are starting from the bottom essentially in tech, the major car companies of yesterday have their work cut out for them if they hope to compete in an ever-evolving and constantly growing smart tech industry. GM may survive, but many others will suffocate and die as a result. Be sure to do your research and trust your judgment.
Velodyne Lidar (VLDR): The SOIL
Now we get to the opportunity! With so much change needing to happen in the car industry and AI space as a whole, there is a lot of room for companies that specialize in providing parts for these different vehicles and smart devices. A company like Velodyne specializes in creating Lidar technology to help AI devices like robots, smart cars, and anything else without real eyes see. This is a technology that old car companies will need, new tech car companies will use, and future AI tech creations will require. It’s like investing in a motor company, motors are used in cars, lawnmowers, machinery, etc. so they have a lot of people to sell their motors to. If they have high demand and can develop a high volume of supply, you would expect to see that company increase their market value and stock value x10, x20, x100.
A Final Note for those who are not planting a seed at all:
Investing your money is one of the safest things that you can do for your family. Inflation is no secret, so every dollar that sits and isn’t working for you is working against you. I heard a quote about this recently:
“I put in 40 hours a week for every dollar I get, so now that I have it, it’s going to work for me!”
Don’t let lazy money sleep in your wallet or bank account, saving is good, but there is a difference between saving for something and saving for nothing. Save for something and invest the rest, that 2% inflation can be a slow and painful death for your pockets.
REMEMBER: The single most important thing that you can do when you invest is to do your research. Do not blindly listen to TV, podcast, blogs, or anyone trying to give you investment advice. Know the market and trust yourself, this is the key to building an account that you and your next generation can be proud of.
Invest responsibly.