HUBS Reasonable Bear Argument

Investment Analysis Clubs Saul’s Investing Discussions
21

The next 85-bagger: Space Mining - seriously.

Unfortunately hard to invest there right now.
All over SpaceX if they go public…or hoping merges with Tesla and can invest that way.

I am betting the large aerospace giants will be able to transition into that market better than most. Currently I like NOC in that space, partly due to recent acquisition of Orbital ATK.

Biggest markets I am not quite sure who/how to invest in yet:

  1. Genetic engineering/CRISPR - unsure who gets all the patents, so going with picks n shovel approach with Illumina (ILMN).
  2. Blockchain - what a messy market right now…waiting for JPM/Chase to go all in, or one of major banks. This is about more than currency - looking for companies that can monetize blockchain.
  3. Space Mining - mentioned above. Moon/Asteroid mining. This is early days of course, but I think it will be the biggest market in my lifetime potentially. (am 45 now)
  4. VR/AR - thinking along the lines of worlds like Ready Player One, which can be school substitutes, healthcare applications, future of chat rooms, future of MMORPG gaming. Unlimited applications really. FB owns Oculus, and could unleash VR across all their platforms. I am just not a big fan of FB though, and their market cap is mammoth already. NVIDIA could power a lot of this. Probably it will be the next big thing from a currently unknown company (Magic Leap?).
  5. Cyber Security - so many players in this space. Established giants like CSCO or Raytheon, and small caps like VRNS or CYBR, etc…
  6. CTV/programmatic advertising - I have said a ton about TTD on this board already, so will leave it there. Advertising has always been big bucks, and Clorox is one of the largest ad brands in the world. Advertising will likely continue to get more personalized and digital-based vs running a newspaper ad or standard tv ad and hoping to catch eyeballs that are interested. Some companies, and I hope TTD is one of them, will reap a ton of $ from this move. I think AMZN is another. GOOGL certainly.

Such an interesting time to be alive, and to invest. I didn’t even mention Quantum Computing, the likely disruption coming to healthcare, Electric Vehicles, Autonomous vehicles, or AI/ML. I think AI/ML will be inherent in so many industries that it almost becomes a commodity. Google and NVIDIA seem to be leaders…IBM wants to be with Watson, and Intel will buy its way into the markets. Likely a few startups will be 85 baggers in the AI space.

-Dreamer

9 Likes
22

Great point Najdor…now tell me…what is the next Clorox?

Sorry, that magic name is reserved for those who pay my bills! :wink:

But to be fun and throw a name out there I personally own, how about RCKT?

23

But to be fun and throw a name out there I personally own, how about RCKT?

Rocket Pharmaceuticals, currently a bit below $20/share…had peaked at $70/share as a sharp spike upward in July 2015. I know nothing else about them. Care to provide a quick synopsis of the company, Najdorf? What their specialty is/where they are in their development pipeline?

Looks like I can see a bit of a volume spike and a steady rise as of about 12:43 today, shortly after (11 minutes) you posted the ticker here.

https://finance.google.com/finance?q=NASDAQ%3ARCKT&ei=Q4…

24

http://www.rocketpharma.com/pipeline/

25

Najdor,
That would be 11.75% compound annual growth rate. Very good, but pales in comparison to Saul’s record of 300 times initial portfolio value over 20 years from growth investing.

The woman has a different investing style. She is more interested in protecting what she’s got by reducing risk as much as possible with her initial investment. I get the impression that once she buys something, she never looks at again. She expects it to at least be there in the future when she retires and hopefully it has grown as well. Very much a buy and hold and ignore approach.

She also, apparently, thinks she can make some money by documenting why she doesn’t buy fast growing companies. Even if it requires making up rather inconceivable scenarios to justify it. When I first read her case, I thought it might be reasonable. That’s why I posted the question on this board. I’m still learning.

If her investing style appeals to you, I don’t know why you read this board.

1 Like
26

Ant,
Your point about due diligence is well taken. I’m still learning and you’re absolutely right, I don’t always collect and analyze all the information I should take into consideration. The problem is that there is so much information, it’s not always easy to know what to look at. Also, I have a life outside of investing. I do have time constraints, self-imposed as they might be.

I posted the question about the article because at first blush it seemed reasonable to me. I’m glad I asked. Many on this board can see the faults in her analysis much more readily than I can. I appreciate everyone who replied.