Investing & Youtube Journey to 7 Figures

komo22

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Between these multiple investment streams and a YouTube channel updating the status on them, lets see how long it takes me to reach 7 figures as well as a monetizable YouTube channel.





Stock Market (Taxable & Retirement Account): $91,766

Robinhood (Tecnical Trading): $2,515

Wealthfront (Roboadvisor): $3,015

Fundrise (Private REIT): $1,107

SeedInvest (Private Equity): $2,000


TOTAL: $100,403





Youtube Subscribers
: 601 / 1000

Youtube Watch Hours: 729 / 4000

Channel:
https://www.youtube.com/channel/UChT4ajlHkg9z-3uGoSmxE4g





I will not be including my crypto holdings for now. Too many pump and dumps and fundamentals turn on a dime to be spreading information. In the future as more stable projects come online that tackle hard assets i.e real estate, shares of registered securities on blockchain, infrastructure improvements etc.






Stock Market: $91,766


(Cash Account)
stockmarket1cash.png



(Cash Account Current Holdings)
stockmarket1cashlist.png


(Retirement)
stockmarket1retirement.png


(Robinhood)
robinhood1.png


(Wealthfront)
wealthfront img.png


(Fundrise)
fundrise img.png


(SeedInvest)
seedinvest1.png


I will explain my investment sector & thesis's in individual posts for max images. Thank you to anyone who folllows!
 

komo22

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Stock Market:


stockmarket1cashlist.png



(Broken Down)
portfoliodiverse.png

As you can see I have a mixture of different companies, sectors, and industries.




My personal way of choosing stocks is to find out what the public price is compared to the companies underlying free cash flow.




For example if you can buy a piece of real estate that has fallen out of favors to buyers. The structure is similar, it just needs an extra step or two to be valued at the previous price point. Things like an owner passed away in the house, people are superstitious and won't buy it. The real estate is worth full price, but on an emotional decision, people avoid it.

Another example is if a property needs a little love, renovating the kitchen and bathrooms to a more modern standard to raise the price to market average value.


houseidentical2.png





In the public stock market, the underlying factor between an undervalued company and it's fair value is TIME.


510qPz1my9L._AC_SX522_.jpg



Some of the greatest value investors, Benjamin Graham, Warren Buffett, and Peter Lynch recognize that the inefficiencies in the market are do to peoples impatience.





People are their own worst enemy when it comes to managing investments. Take a look at this chart from Aug. 2020.

The average time in Aug 2020 went all the way down to 5 1/2 months. That's right 5 1/2 months all the way down from a decade holding period in the 1950's-1960's.


Do to high frequency trading it does boost the downward stat some but the overall picture is correct. HFT is good for closing the spread between trades so if you purchase say $100 worth of stocks, you will get $100 or tecnically $99.999999999999999 worth because provide the liquidity buying from someone and selling those to you in milliseconds, while of course taking a very tiny spread.



So if the liquidity on stocks are near perfection, and the average period holding time continues to trend downward....more value will be found while the competition dwindles do to human nature and the evolution of index funds.



Pasted image 1596444244862.png




8e1a905c67a90d29bba94cd20543c77a--money-twitter.jpg


So, what and how do we capitalize on others people's impatience? We need to find undervalued companies.


My personal method and most modern method is using stock screeners to weed through thousands of public companies. I am looking for companies who are profitable, have higher then average growth potential, and most importantly, undervalued. Low debt is also a very big plus. (Under 1 debt/capital)



Finviz, tradingview, seekingalpha, simplywallst, fastgraphs all have free or have free trials you can keep using new emails

I filter out everything except mostly if not all US companies, too many people including myself have been burned by foreign entities....



(Recent Chinese IPO) - Dropped like a rock because of complications overseas....stick to US companies
didi123.png


Ok now with mostly US companies here are my screener inputs:

Value using FCF: 25%+

Future Growth by Analysts over the next 1-3 years:
15%+

Past Earnings Growth Performance Past 5 years: 10%+ per year

Debt to Equity: 100% or below / Under 1 ratio

Profit Margin
: 0%+ honestly though 5-10% minimum unless it's ultra growth company in early stages



(Here's an example screen)
screener.png


(Another one)
screener1.png


As you can see with the metrics, you will most of the same companies on different screeners. Most aren't differential, so it's up to preference.




...continuing for images on next post
 

komo22

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Stock Market (Part 2):



Why Fundamentals matter...


Take a look of this recent chart of Microsoft. Over the last few years, it has rapidly exploded in price.
msft1.png


As you can see over two decades Microsoft has rapidly appreciated at 13.6% annually. Believe it or not it almost doubled the SP500 at 7%.



But what you don't see is that there have been times where Microsoft wasn't and might not be the best investment at the moment and I'll show you why.




During the dotcom bubble, valuations were extended way past the underlying business, and well you know the outcome. If you had invested $10,000 into Microsoft on June 30, 2000 that same investment would have been -41% even before the 2008/2009 crash and then would have continued all the way down to -54% at the bottom.


msft2.png


See, this is why fundamentals matter long term. Most of these screener free cash flow plays take 6+ months MINIMUM to play out. There's a reason why people are impatient, and I explained it in the last post.

But now you'll see why patience is rewarding.


This is what would have happened if you bought MSFT when it was undervalued.

msft3.png


....It took 5 years before Microsoft was fairly valued. And look, it still returned a 19% return. Why? If you look at the green, you can see the earnings per share or EPS increasing in value every year or close to it. So what does that mean, Microsoft was under valued for those 5 years.



Now, when it comes to current valuations...

sp5001.png


Take a look at the SP500. The top 10 holdings account for 27% of the entire fund. Some dversification between 500 companies....



msft4.png

Even if MSFT kept up with it's extremely high price premium for the next few years, a projected return of 6.75% using adjusted earnings or around 12% using FCF moving forward.


Now compared to the market you can say, wow with FCF if it returns 12% a year that's great. But when the market, SP500 is basically MSFT in itself, there are much better investments out there that make fundamental sense.

That's a reason why Michael Burry (Big Short Investor) says there is a passive index bubble looming. Too much allocation on too few companies, dragging the whole market up, but on the downside....oh boy


amazon1.png

Compare it to Amazon, and yes Amazon does have a much higher p/e ratio, but when you compare it to it's FCF or historical P/E + the analysts projected growth....it's night and day. Projected 30%+ annual return. This round I didn't comment on technical this round of info, but traders know the consolidation Amazon has had the past year is primed for a extreme move.


So to conclude on the individual stock level, screeners are showing, Homebuilders, Healthcare, and Bio as prime fundamental targets...time to do your homework

screener3.png



POSITION SIZING:

I don't have any qualms about position sizing. If your trade thesis is thorough 25-50% is adequate. Now of course the higher your balance diversification is better on keeping wealth. Earning wealth concentrated generates alpha. In the main portfolio I have 14 and will be consolidating as some of my companies fall into the overvalued territory.





Good luck, and I'll update and share why and how I pick my other investments and what they even are like I did my stock account.
 

komo22

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Good luck there. But, what's the plan with the Youtube?
maybe he planning to bring traffic through his affiliation link, more $$$$, i don't know


No monetary goal as of now. Want to take small steps, first to monetization threshold is the goal. But the average finance cpm range for adsense I've seen has been over $10 per 1k views all the way into the mid $30's
 
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