Good morning Investment Club,
First and foremost, the contribution deadline was yesterday but we are extending it to today. Please get those over to us to make sure that you are able to get counted for this month. The survey will be published later this week. Now, to the email:
We are doing some great things. We are now about 180 members strong on the stock side of this club, we pushed through a new milestone invested and we have some holdings that are doing VERY well. Most notably is our NFLX which is up about 33%. Of course our index funds and Visa are holding steady as well.
The only real down plays we have are Snap, UA and Amazon, temporarily. I am confident that long term UA is going to blast out of this world and we will be the ones who got in early. We always read about the guys who bought Netflix or Apple when it was selling for pennies but you have to realize that those stocks weren’t as obvious in foresight as they are in hindsight. Everyone is a genius looking backwards. When those people bought Apple or Netflix companies like Blockbuster were at their peak and Microsoft could not be stopped. Similarly, today people point at Nike and Facebook as though empires don’t fall. In due time my friends.
Another point I want to make is that we have to be willing to cut our losers and take profit off the table on some of our winners. This also means we need to be constantly on the prowl for new opportunities. We can’t afford to fall in love with stocks. At the end of the day its the numbers that matter not our emotional connections to brands.
A lot of people think that the stock market is boom and bust, they think that since stocks are winning that now we are going to bust out. That is a very simplistic way of analyzing the markets. I believe now, and for some time, we are entering into a traders market. We will see some volatility and it is up to us to make money tapping into it by buying low and selling high back and forth with the same money. If we sell something that doesn’t mean we hate it, that just means that it is not serving our portfolio. “Stocks are employees and you wouldn’t keep an employee around if they aren’t work.” Tela Holcomb.
I have attached the most recent screen shot to this email. We will also be doing a conference call this month as it is earnings season. I haven’t been able to keep in touch via email as much because most of my focus has been on closing this deal. We, the Real Estate side of TC, should be closing on a deal tomorrow. This is a reasonably priced single family home in Detroit that we are buying for cash and that will cash flow about $650/mo gross. Since we have lost deals in the past, I wanted to make sure we close this so all of my focus has been there. Now that we have executed that, my goal is to land our first deal via Todd Ventures which will be a business acquisition that will also cash flow 🙂 It would be great for you to get on board if you are interested in working with us outside of the stock club. Great things are happening guys.
Last thing, I was reading about Simmons University, an HBCU that was created by pooled resources between former slaves. They literally built their own school for themselves using no outside resources but their own. That is what I envision for this club. We have seen what we can do in one year. Imagine what we can do in ten.
As always, thank you for supporting and being patient as we build this club into a dominant force we can use to change the culture. If you have any questions please don’t hesitate to call or email.