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Investing in FUTURE tech monopolies! # No-FAANG stocks - YouTube
Channel: unknown
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so i'll go to coinbase place the buy
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order
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and invest 750 dollars because i'm
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investing in four different stocks so
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i'll place the equal amount so i place
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the trade and done
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hi everyone welcome to today's video so
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today we are going to have an honest
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conversation about investing in u.s
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stocks
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and i'm actually going to invest my own
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3000 us dollars into four tech u.s
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stocks now you would say i can hear lot
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of clicking noises they would say that
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hey i know what these four tech stocks
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are you are going to invest in google
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facebook amazon netflix all this no so
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none of these stocks i am not going to
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invest in any of their bank stocks fang
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means facebook amazon apple netflix
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google and microsoft so i'm not going to
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invest in any of these six talks i will
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explain you the reason why as well
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please listen to it very important now
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many of you would say that yeah you know
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what i am getting bored i am an indian
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stock investor i don't care about u.s
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stock market
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you should care because there is a lot
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of congruence between the indian stock
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market and the u.s stock markets so if
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you keep a track i am not saying that
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you should invest but if you keep a
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track of the u.s stock market you will
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get cues when to pull out your money
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from the indian stock market or invest
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more money in the indian stock market i
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did a separate video you can check it
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out but today we are going to take a
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look at four u.s stocks that i am
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investing my money in i am going to
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explain you the rationale of investing
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in the u.s stocks so please stay tuned
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till the end of the video now very quick
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disclaimer number one not an investment
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advice number two which app am i using i
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am using ind money i like the interface
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it was clean easy to understand
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intuitive had very easy time buying the
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stocks transferring money so i loved it
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from that angle now if you have other
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recommendations please put it in the
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comments i will go check it out now here
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is a look at my bank statement i
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transferred three thousand dollars to my
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ind money trading account and these were
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different charges that i paid these were
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mostly bank charges so you can look at
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sgst cgst and the commissions that are
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paid to the bank you can use any app
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that you like the objective is to
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understand u.s stock market investing so
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let me start the discussion and there
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are three major points that i'll speak
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on this video so number one point is
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that i am going to explain it to you
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that why am i investing in u.s tech
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stocks but why not in major u.s tech
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stocks like apple amazon facebook all
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these big big name companies that
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everyone is investing their money in
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so okay so let me address this point so
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my objective in terms of investing in
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the u.s economy or u.s stock is fairly
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simple that i am trying to find out
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global monopolies
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not existing global monopolies if i ask
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you that hey name like three tech
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monopolies in the world you will say
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something like google is there apple is
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there amazon is there so these are
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probably somewhat monopolies with very
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big market share and they are leaders in
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their own space and you are right but
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these are monopolies already they are
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already trading at a very high price so
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there is no point in me getting into
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that race again and investing my hard
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earned money at such high valuations
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i'll explain this point further but i
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hope this message is clear that i am
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looking to find out the next global
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monopolies so for that where would i
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have to go i can't do that in india i
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will have to move to the u.s to figure
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out those tech monopolies so please keep
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the nationalistic pride aside let's be
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practical that right now the way indian
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tech market works we are not disruptors
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so if we do an honest assessment of
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technology companies in india we would
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all acknowledge i will not take names
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here basically we will all acknowledge
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the fact that the tech companies in
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india mostly do back-end tech right they
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are not doing revolutionary tech
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something building like google maps that
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google is doing or they are doing like
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market domination across the world that
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is hardly happening right so if you have
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to find a monopoly where would you put
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your money so i am putting my money in
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the u.s because that is where many
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disruptive companies are coming up which
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can become the next tech monopolies like
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google apple amazon so that is my
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objective of investing in the us tech
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market that i am essentially looking to
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do what i am looking to identify global
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monopolies
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these are growing tech companies in the
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us where i am going to put my money now
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lets move on to the second part and let
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me explain why am i not bidding not
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bidding on big fan stocks and microsoft
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so let me explain this by covering and
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breaking down the analysis of s p 500
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now you would say that hey what is s p
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500 exactly so snp 500 it's essentially
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index in the u.s for top 500 u.s stock
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companies right so for example in india
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we have what we have nifty
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50 right so if you're looking at nifty
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50 what does that mean we are looking at
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top 50 companies in india if you are
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looking at s p 500 what are we looking
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at we are looking at top 500 companies
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by market cap in the u.s economy so if
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we are breaking down s p 500 you will
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understand hey these are like 500 stocks
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that make up this s p 500 right now if i
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show you the chart for s p 500 you will
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see that in one year it has gone
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approximately from 3 400 us dollars to 4
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500 us dollars so it is a big jump of
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approximately 25 30 percent in the s p
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500. now what is happening is that this
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entire index seems to be overvalued now
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you would say that hey same situation is
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playing out in india so how is india
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different i have done a video yesterday
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so please watch it here you will
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understand the difference between index
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investing in india versus the us
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the answer lies in inflation so please
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watch that video very very important
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video otherwise this particular concept
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is going to confuse you so back to our
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story s p 500 has moved quite a lot
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because this is a liquidity driven rally
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right now if you don't understand this
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term please watch my video from
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yesterday very important video only then
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you will understand this core concept so
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s p 500 has moved up and you would see
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that some big investors for example if i
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show you the portfolio of ray dalio who
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runs bridgewater associates holding you
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will see that he has cut down his snp
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500 position by 37 recently and 37
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percent is not a small amount so what
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does this indicate about s p 500 it
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indicates that hey there are 500 stocks
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that are making s p 500 right now many
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of these stocks are overvalued right
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over valued now if i ask you that hey
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which of these stocks would be
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overvalued or are likely to be
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overvalued
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the answer lies fan stocks and i'll tell
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you why right now here you can check the
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weight of top 10 s p 500 stocks and if
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you scroll through it for example apple
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has an index rate of 6.2 percent
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microsoft 5.9 amazon 3.9 facebook 2.4
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alphabet 2.3 if you take the weight of
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top 5 us stocks in the s p 500 from a
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weight perspective it comes out to be
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twenty percent so just five stocks make
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twenty percent of the index it is huge
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since there has been a huge run up in s
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p 500 these five stocks have also moved
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massively so this is the reason why i am
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not investing in s p 500 heavyweight
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tech stocks
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now this was a very very important
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concept for me to cover because the
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first time when you are looking to make
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investment in the u.s tech market or u.s
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stock market all of us tend to make
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investment in debt and we end up buying
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what type of stocks flying stocks so i'm
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not doing it this is my strategy i might
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be wrong but this is what i feel that i
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am not going to buy this then your
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question would be that okay great akshat
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awesome which stocks are you actually
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looking to buy and why can you explain
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the rationale first and then talk about
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the stocks so i am very happy to do it
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now this is the same rationale that
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investors like kathy wood are also
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propagating so the rational goes
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something like this so they believe that
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heavy weights
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heavy weights in the u.s right for
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example all the flying stocks they will
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be disrupted
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right they will be disrupted by
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other tech companies to a certain degree
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right now this is a fundamental dna of
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tech that tech gets disrupted quite
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often
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these companies whichever companies have
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been talking about so far they've
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already grown big now their growth rate
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will not be that massive so let me prove
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that point to you first then i will come
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back to this argument so let us take a
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quick look at microsoft now this is the
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microsoft share now what you would see
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is that microsoft was trading at
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approximately 184 us dollars just before
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the crash endemic right now it is
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trading at approximately 299 right the
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stock price has doubled
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and we are not talking about a mid cap
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or a small cap company microsoft profit
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are much more than hdfc banks total
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revenues right so it's a huge company it
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is a massive company it is a leader and
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it is doubling its stock price like a
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mid cap or a small cap stock so from
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this point if we are sitting at 300
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in the next five year will this become
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600 i highly doubt it i don't mean to
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say that microsoft is a bad company it
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is a great company but the price at
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which it is available right now the risk
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reward equation the risk seems high that
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is the reason why i am not too bullish
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on these major tech but if there are
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companies in the u.s that we are able to
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identify which will be next leaders in
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their own respective space
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they will exhibit a similar type of
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growth it would be easier for them to go
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from let's say 50 to 100 or 150 dollars
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in the next five years that is what we
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are betting on and that is what we
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should be waiting on so just to explain
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the rationale of investors like kathy
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wood what they are saying is that hey if
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you look at s p 500 these there are
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major companies for example there is
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ford motors right now companies like
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uber they have the potential of
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disrupting ford motors so in the us the
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next leg of growth will be driven by
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what type of companies by disruptive
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companies right so this is the reason
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why we should pick up companies that are
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disruptive in nature and which can grow
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from x to 5x in the next five years so
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do let me know in the comment section if
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you agree with this logic that if
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companies like uber or airbnb or similar
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companies which are advancing in their
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own niche space and technology will they
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become 3x 4x5x or do you feel that
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companies like amazon or apple will
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continue to grow at 2x3x the speed that
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they are growing now so i will take bet
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8 right so that is what i truly believe
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in and that is the reason why i am
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investing 750 this is the first stock
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that i am buying in a company called as
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coinbase so i am going to invest 3 000
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in total first i am going to buy a coin
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base so i will go to coin base place the
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buy order
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and invest 750 dollars because i am
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investing in four different stocks so
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i'll place the equal amount so i place
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the trade and done
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so why am i investing in coinbase and
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many of you might not be aware of
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coinbase so coinbase is a cryptocurrency
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exchange platform it is one of the
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world's biggest cryptocurrency exchange
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platform if you don't believe in the
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crypto narrative it's fine no one is
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pushing you to believe in it but at
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least understand that a lot of other
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people are believing in this narrative
[650]
for example i am not a big believer in
[652]
luxury cars but i still track the
[654]
automobile market as an investor
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similarly even if you are not a big
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believer in bitcoins and
[658]
cryptocurrencies it's fine track how
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people are behaving about it you can
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invest your usd or inr in a company like
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coinbase and if you feel that hey the
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crypto market will grow in size then
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companies like coinbase will grow with
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it so coinbase is a cryptocurrency
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exchange and if the crypto market grows
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coinbase will grow with it now if you
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take a look at coinbase it recently got
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ipod so in april 14th april is when it
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got listed at 328
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the price has over time stabilized now
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it's trading at 267 so you're not going
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and investing your money in coinbase on
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day one you're buying it now when price
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has somewhat stabilized over time and
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this is despite the fact that in the
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last one and a half two months the
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crypto market has actually gone up so i
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feel that this stock is going to go up
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why so let's look at some financials
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also and when you are looking at u.s
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charts and graphs some financial data is
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present from right to left not the other
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way round so start reading it from right
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to left okay so here you would see that
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hey what is the operating revenue so
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revenues have gone up right it was at
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179 then it somewhat stabilized these
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are quarterly results by the way gross
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profits have been up over the last few
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quarters so it's a growing company it's
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a new company not a lot of financial
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data around it but overall the picture
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that we have seen so far seems to be
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good now let me take you to the final
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number which shows the overall net
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income so now you can see that the
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overall net income has bounced from 31
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or 32 million to over 1.6 billion now
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this is huge jump in net profits and
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that is not getting reflected in the
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stock price as of now now this is a good
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stock to buy according to me now why am
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i saying it now of course due to the
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recency of the company we can't look
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into the financials a lot but we can do
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some solid analysis here in terms of the
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business overall viewpoint now if you
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actually take a look at some of the
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products if you go on wikipedia and look
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at some of the products that coinbase
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offers then you will notice something
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very interesting that of course people
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engage retail traders engage in
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cryptocurrency related products even
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institutional traders are engaging with
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the platform there are other crypto
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related products for example if you have
[777]
to store your cryptocurrency you have to
[778]
get into the wallet game right so i will
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not bore you here with the crypto
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analysis but the bottom line is that
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crypto exchanges can also launch a bunch
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of their products they already have
[788]
existing users and they can amplify
[790]
their revenues by a lot for example
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again i explained you this p and q
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scenario earlier p means price and q
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means quantity now let's say that if 100
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users are using coinbase right now
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hypothetically and they are using let's
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just say one product for coinbase
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now
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even if new users do not get acquired
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right now what will happen is that the
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crypto market is anyways growing right
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so this q is anyways going to go up with
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time and this number is also going to go
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up so it becomes massive right so for
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example if this becomes 500 and if they
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are able to launch five products their
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profit margin will grow exponentially
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there will be massive pe expansion of
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this company now you would say that
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actually you know can you just explain a
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little bit more that this company
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crypto market i understand it might grow
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they are launching new products but
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don't you think there are too many like
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crypto players and crypto exchanges now
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what about that would they not take away
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the market share from coinbase
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good question and this is what you need
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to see so here are top crypto currency
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spot exchanges there's binance and you
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will see volume and you will go crazy
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that way this volume looks like crazy
[854]
right and you will go coinbase which is
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second but there is a huge difference in
[858]
volume so first and foremost don't look
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at the volume because finance has 383
[863]
coins and coinbase has 98 right so there
[866]
are all types of dogecoins and whatnot
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so you don't need to worry about that
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just look at weekly visits okay that's
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point one point two you need to
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understand the difference between
[874]
finance and coinbase now there was a
[876]
great article which help you understand
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the difference between binance and
[880]
coinbase now essentially the to cut the
[882]
long story short coinbase is type of a
[884]
platform which is much more useful for
[887]
new investors in cryptocurrency because
[889]
of its user friendliness so that is one
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second is that coinbase is a u.s centric
[894]
platform and us is a massively growing
[897]
crypto market coinbase is present
[899]
outside the us it is not able to gain a
[901]
lot of traction in the us yet so by far
[904]
coinbase is a bigger player in the us in
[906]
the crypto domain and it is likely to
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dominate it now here is a quick chart
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that you can take a look at about
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finance and that will help you
[913]
understand a little bit more but to cut
[915]
the long story short if you do a quick
[916]
analysis if you take a look at top
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crypto platforms you will realize that
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coinbase exchange is one of the biggest
[923]
platforms in the us and it is actually
[925]
very user friendly it has ipo recently
[927]
so it will pour that money to fuel the
[930]
growth also so this is one part of the
[932]
equation now you would say that okay
[934]
some new platform might also come up
[935]
they will take like insane amount of
[937]
share
[938]
no it is not that easy what happens in
[940]
the crypto market is that there is
[941]
something called as hockey stick curve
[943]
right so let me explain that how
[945]
adoption in tech works so essentially
[947]
what happens is that initially when
[948]
companies launch their products there is
[950]
something like this right that they will
[952]
acquire users at a very slow rate right
[955]
and then eventually what will happen is
[957]
that there is like this j curve right so
[959]
essentially this is hockey stick that
[961]
after a point a platform or a technology
[964]
or an idea in tech it finds its product
[967]
market fit right and they get a lot of
[970]
users right so this is called as the
[973]
threshold so to say right after this the
[975]
company becomes profitable good good
[976]
things happen let me explain this by
[978]
giving you the example of facebook
[980]
versus or could right
[982]
how many of you have used orkut let me
[984]
know in the comment box if you are my
[987]
age you would have used orkut so our
[988]
code was very similar to facebook in
[990]
fact i personally liked orkut more when
[992]
i started engaging on social platforms
[995]
but what happened was that since
[997]
my friends were moving to facebook
[998]
everyone was using facebook people
[1001]
started migrating from more code to
[1002]
facebook now because of the fact that
[1005]
facebook had many users then there was a
[1007]
very high switching cost right that all
[1009]
your friends had to switch to some other
[1010]
platform only then you can message them
[1013]
and engage with them that is how social
[1014]
media would the same is the story with
[1017]
instagram right that anyone can copy the
[1019]
codes of instagram the design codes of
[1022]
instagram and create like a replica of
[1024]
instagram too right a more poorer
[1026]
version of instagram they might even
[1028]
make it appear better but will people
[1030]
migrate from instagram to this instagram
[1032]
2.0 no because there is already a
[1034]
network of users on instagram so a
[1037]
company like coinbase is already winning
[1039]
in this race and therefore i have
[1041]
invested 750 dollars in it now there is
[1043]
another interesting question that you
[1044]
might ask here that he actually you know
[1046]
what you said that you are not going to
[1047]
invest in apple google microsoft all
[1050]
these big tech players can't they start
[1052]
their own cryptocurrency exchanges why
[1054]
can't they do it actually they can and
[1056]
they might also start their own
[1058]
cryptocurrency exchanges but what these
[1060]
big companies do is that they go and
[1062]
merge or acquire newer players so there
[1064]
is a likely scenario at some stage not
[1066]
now but maybe at some stage in the
[1069]
future that a major tech player might go
[1071]
and try to acquire try to acquire a
[1074]
company like coinbase this is one half
[1076]
of the equation about a company like
[1078]
coinbase the second half of the equation
[1080]
is smart contracts and nfts if we move
[1082]
towards a newer world where there is
[1084]
mass acceptance of nfts smart contracts
[1087]
dapps these are all newest technologies
[1089]
and we are moving towards tech because
[1091]
one thing is constant right that tech
[1093]
always evolves it's not as if that the
[1096]
car that you were using in 1950 it
[1098]
hasn't evolved it has evolved similarly
[1100]
the tech that you're using right now it
[1102]
will evolve there is just no doubt about
[1104]
that so therefore you need to pick your
[1105]
bet in terms of technology where the
[1107]
world is going which technologies you
[1110]
are betting on so i am betting on
[1111]
blockchain so i do believe that
[1113]
cryptocurrencies are the future so
[1114]
therefore i am investing 750 dollars in
[1117]
a company like coinbase so to summarize
[1119]
this video now you'll say that here you
[1121]
did not show the other three stocks i am
[1122]
going to show you the next time
[1124]
otherwise the video would have become
[1125]
extremely lengthy i am going to do
[1127]
detailed analysis of three more stocks
[1129]
of the companies that i am investing in
[1131]
and i will show you the live investment
[1133]
again so just to summarize i am not
[1135]
investing in major tech i am investing
[1137]
in disruptive tech i am betting on
[1139]
certain technologies and big players
[1141]
within that technology so therefore the
[1143]
first stock that i am buying is coinbase
[1145]
because i believe in the crypto space
[1147]
and the blockchain space and i believe
[1149]
that coinbase can actually become a
[1150]
monopoly especially in the us when it
[1153]
comes to crypto exchanges so i hope you
[1155]
enjoyed the video so give it a thumbs up
[1156]
and i will see you the next time
[1162]
[Music]
[1169]
you
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