How I Invested $2k During the Pandemic!!
By Miguel Dos Anjos
I invested $2k!! This is during a pandemic if you’re not losing money and keeping what you have; it’s already a good day!! Getting almost 10% profit in a little over a month is a divine blessing!!
How I invested
I invested this whole $2k in stocks!! 80% in four
companies!! And the remaining 20% I split into smaller positions into 5 other
different companies!!
All these companies are pandemic proof!! So they do well
with pandemic or not!! Actually some of them profit from the conditions we are
living in today!!
M1Finance Platform
I used an investing platform called M1Finance!! It supports
fractional shares!! It was extremely useful!! It allows flexibility because
some of these companies, even to get a single share is so expensive!!
I don’t work for M1Finance and sadly they don’t pay me to
say this!! I just like and use their platform!! If you’d like to open this same
account I use; feel free to use my link!! You can
use somebody else’s link or go direct to M1 web page but if you do use my link
you get a $10 referral bonus and I get a $10!!
Strategy
The $2k was not invested in a single shot!! I made different
amounts of smaller investments every week or almost every week!! Trying to
avoid the peaks, high prices, and jumping in during the dips attempting to buy
during periods the prices were cheaper!!
This is called DCA, dollar cost averaging!! It is the
opposite of investing huge lump sums of money once and instead buying smaller
amounts during a longer period of time!!
I prefer much rather doing this because imagine putting all
your eggs in one shot and the next day the news come up: “you have 9 million
cases of covid!!” And right away the stocks nose dive down!!
If you had the money great, now you buy it all half price if
you’re already all invested now what? Sell the stock investments half price?? I guess at that
point, as long as the companies invested in were good, the best course of action is to wait for the market to come back up!!
1st position: Alphabet
If you are wondering oohh what this company is about!! I tell you; “you already know”!! Alphabet owns google, the number one searching engine in the world and they also own YouTube, the number 2 searching engine in the world, and they own many other companies!!
My only regret here is not being able to invest more on it!!
The only risk they face is government coming down on them for monopoly
complications!! And I hope government don’t hurt Alphabet too much and if they
create new laws, these laws improve the economic field but keep my investment
safe!!
2nd position: Tesla
And position number 2 is Tesla!! Run by Elon Musk!! It is a technology and information company!! It makes electric cars, batteries and harvest the energy from the sun!!
Tesla P/E is around 800!! Huge P/E right!! Stay away?! No,
the way I see this it is a buy!! Tesla’s been around for 10 years!! I few
months back the P/E was negative; which meant the company was not profitable
yet!! But that’s how good business are!! They need investment to start!! But
Tesla now is profitable!! They make their products in the gigafactory, and now
they have 3 full gigafactories up and running!! Nevada, New York and Shanghai
and 2 more gigafactories under construction one in Texas and another one in
Berlin!! The support for this company is tremendous!! When it started people thought
it was a dream but Elon Musk made it a reality!!
3rd position: Amazon
And the 3rd position is Amazon!! Amazon didn’t suffer from the pandemic!! It profited!! Everyone loves ordering online!! With social distancing even if you enjoy going grocery shopping now you think twice before doing it!!
Personally I love the convenience of having it delivered to my door in 2 hours and it is cheaper and I even save on gas!!
Amazon P/E is at 116!! Which is expected for a company this
famous and this big!! The P/E is good and important evaluation but at the end
of the day all that matter is how much more the next person will pay for it!!
And I tell you Amazon is not going away!!
4th position: Netflix
More than ever we are home netflixing and chilling!! Netflix ruined it for the monopoly cable companies had!!
For a few bucks we have access to great content and
entertainment!! While cable charged a few hundred bucks!! That’s why I ditched
cable!!
Netflix figured out a way to produce great content at a much more affordable price!! And that is Netflix mote!! Generating good series and content at a more affordable price is Netflix protection just like a castle’s mote that deep water trench around a castle’s that protect it!!
Netflix P/E is at 76!! I wouldn’t buy most companies at a
P/E like this, but this is not most companies, this is Netflix we talking
about!! Yes we now have Disney+, peacock, and everything so then I thought
Netflix was over but I was wrong Netflix is the one consistently coming up with
new content!!
5th position: Snowflake
And position number 5 is Snowflake!! Snowflake recently went public!! It was my first time buying a new IPO.
Warren Buffett was making a move on this!! And that’s what
brought my attention to this company!! We can watch and learn from Buffett but
we can’t copy his foot steps exactly!! While my profit on Snowflake it 13%,
which don’t get me wrong, right it’s good, it’s a profit!! Buffett’s profit on
this was over 100% by day 2!!
Regular people like me and you don’t have enough money to lock in deals big fish like Buffett has!! And we don’t have a huge company or companies on our backs as proof of a track record!!
Snowflake is a new technology company!! This is their time!!
They are more relevant today than ever before!!
Remaining 15%
The remaining 15% of the $2k was invested in 4 companies!!
About $300!!
Position #6: Berkshire Hathaway!! The company owned by
Warren Buffett!! It is a company that holds a few dozens companies including
Geico!! Berkshire is also highly invest in Apple!! It’s sitting in lots of
cash!! Even though it is not a tech company it is still profitable, and it is
making very interesting moves lately thanks to Buffett and his great team!!
Position #7: Apple!! Apple is actually my number 1 position
in all accounts together!! I love its products!! I rarely or never see somebody
trying out apple products and going back to the competitor!! They innovated
phones!! I’m all the time on the phone!! But I’m never calling anybody!! A
phone is so much more than just a phone now!!
Position #8: Virgin Galactic: Virgin Galactic is a
spaceflight company that wants to take me and you for a ride into space!! A few
years back for me it was a big deal going to six flags and riding those rides!!
Virgin Galactic wants to make a space ship that will take regular civilians for
a ride into space for a few $100 bucks!!
What can I say?! Space is the last frontier!! We have
recently found much more water in the moon!! That can certainly help stablish a
permanent colony there!!
Position #9: Alibaba: And finally my last and smallest
position is the Chinese company Alibaba!!
Final Thoughts
$2k was invested!! We have about $116 profit!! That is
almost 10% in a little over a month!! At this pace, there are 12 months in a
year; we could be looking at 100% yearly growth!! Doubling the investment!!
That would be a dream come true!! But a bit too much!! This
is a time where many people are losing money!! Just keeping what we have today in
the pandemic is good!! 10% profit in little over a month or 100% in a year!! Holy moly!!
Everything that goes up goes down!! But for the loooong run
its usually good!!
👉I made a video on this topic: How I Invested $2k
👉Drop questions, comments and ideas in the comment section down below.
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DISCLAIMER: I’m not a financial adviser. I don’t provide legal advice on my videos, posts and content. On this post, blog-page and channel I just share my experience. The topics and ideas discussed on this blogpost are my opinions and are presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
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