Over the past decade, I've been blessed with:

✅27% annualized returns
📈That's roughly 1,000% total

One of the keys behind those results: Looking for something that's often ignored by analysts...⤵️
OPTIONALITY

The practice of TESTING out a new product or service in an effort to fulfill its mission.

🔴If it doesn't work, it's no big deal -- it was just a test.
🟢If it does work, it's a game-changer.

Critically, the company already needs a wide-moat rev stream to count on
No company is a better example of this than AMAZON $AMZN

In 1999, books and music were the wide moat business. It decided to test:

🔴Amazon Auction (failed)
🟢3rd Party Merchants (huge success)
In the next decade, 3rd Party Merchants were so successful, that business line entered the left (wide-moat) side of the business.

Next, it tested:

🔴Fashion Retail (failed)
🟢AWS, Prime, Fulfillment (ENORMOUS success)
Ten years later, those winners were no longer tests, they were wide-moat businesses.

But the innovation didn't stop there:

🔴Quisdi (failed)
🔴Fire Phone (failed)
🔴Amazon Wallet (failed)
🟢Original video content (succeeded)
The result of all of this:

A simple $10,000 investment at the company's IPO is worth almost $20 MILLION TODAY!

But Amazon isn't alone, there are others you can invest in today.
@BrianFeroldi and I tackled this phenomenon in our recent video on OPTIONALITY.

We introduce
✅One small (~$11B) stock with lots of optionality
✅8 more stocks we're impressed with
✅How to find signs of optionality

We are busy making videos like this every week.

Why?

Because we want to spread financial wellness and help anyone lead a full, whole life (while not worrying too much about finances).

Our videos are completely free, and you can subscribe here:

youtube.com/brianferoldiyt…
To review:

OPTIONALITY is the ability to *test* new products and services that fulfill one's mission.

If they fail, it's not a big deal
If they succeed, it's a game changer

And no one has done this better over the last 20 years than Amazon $AMZN

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More from @Brian_Stoffel_

22 Nov
Admitting your mistakes as an investor is crucial. It makes you:

✅Accountable
✅A better investor.

In that light, when @BrianFeroldi and I reviewed Peloton in June 2021, I liked it so much that I bought shares.

Since then, it dove 60%.

$PTON

Here's what I'm doing⤵️
First, I need to REVIEW MY REASONS FOR BUYING

Because of our YouTube channel, this is pretty easy. Can just pull up the results of my framework, and immediately make changes to the OBJECTIVE variables
Right off the bat, I know there's NO meaningful change to:

1⃣ Concentration Risk
2⃣ Glassdoor Reviews
3⃣ Founder's Role
4⃣ Insider Ownership

🔴Finances, however, changed a ton -- which lowered the company's score to a 9 overall
Read 12 tweets
15 Nov
Market Crashes are Scary 😱

They don't have to be 😌

Here are four actionable steps to transform them
1⃣
2⃣
3⃣
4⃣

A mini-thread⤵️
1⃣Prepare INTELLECTUALLY

If you're around long enough, bad stuff WILL happen.

Our example: Russian Roulette

If you play one round, you have a 83% chance of survival (five empty chambers of six)

But if you agree to five rounds, you only have 40% chance of living
1⃣Prepare INTELLECTUALLY

Let's apply to investing: a 30% drop in market occurs ~once per decade.

Odds of NO 30% drop in one year = 90%

But if you invest for 30 years (as many do), *at least* one such drop is guaranteed. This uses same math as above, but with 9➗10
Read 12 tweets
30 Oct
In 2010, wife & I quit teaching. Rolled over 403(b)s

Those accounts have grown:

✅27% annually
📈That's 910% total.

This isn't to brag, it's to be accountable for my @themotleyfool writing and my YouTube channel with @BrianFeroldi

How we did it & my portfolio today ⤵️
As @nntaleb says, "Don't tell me what you believe, SHOW me your portfolio."

Actions > Words

So here it is, excluding cash, as of the start of November.

Since 1/1/12: 910% returns
Since 1/1/17: 625%
Since 1/1/19: 360%
Since 1/1/2020: 183%
YTD: 24%

The portfolio⤵️
1) $SHOP 16% of port. (~2,500% combined returns)
2) $MELI 8% (900%)
3) $CRWD 8% (350%)
4) $SE 7% (150%)
5) $MDB 7% (600%)
6) $TEAM 6% (300%)
7) $DDOG 5% (350%)
8) $AXON 5% (500%)
9) $VEEV 5% (800%)
10) $AMZN 5% (1,700%)
11) $GOOG 4% (800%)
12) $U 4% (65%)
⤵️
Read 8 tweets
19 Oct
Nassim Taleb's @nntaleb work has adjusted my MINDSET to always consider his worldview.

My favorite book = ANTIFRAGILE

There are lots of heuristics I've developed from the book, but ONE stands out for its

✅Counter-intuitiveness
✅Real-World Applications

🧵⤵️
That is:

Given two choices, ALWAYS favor the one with:

😡Known Downside & Unknown Upside

OVER

😻Known Upside & Unknown Downside

The applicability in Life and Investing is under-appreciated...yet vast
And if you understand Anti-Fragility, it makes sense.

Something must have known (and acceptable) downside to stand the test of time. It must also *at least* have exposure to upside.

But no matter how great the upside is, if the downside leads to RUIN, it isn't worth it
Read 11 tweets
12 Oct
In 2017, I made my first purchase of a company that is now my largest holding.

First ten shares cost ~$430.

Today, those same shares are worth ~$13,500

That's a 32X return in just four years!

Here's the stock, and three more I'm putting $$ into in search of similar results ⤵️
The company was Shopify.
$SHOP

I used my Antifragile Framework to double-check my conviction of the company.

The understanding of $SHOP from the framework even led me to buy more after a short-report a few months later

fool.com/investing/2017…
Using EXACT SAME framework, I've identified three more companies with similar potential.

The first is Axon Enterprise $AXON (already a 9-bagger for me)

Maker of TASERS, Axon body cameras & (most importantly) software solutions for police.

More on $AXON fool.com/investing/2021…
Read 9 tweets
4 Oct
I started investing ~ 10 years ago.

👨‍🏫Rolled over my 403(b) from teaching
📈Started investing it.

Since then, I've averaged 25% returns per year.

A few things have helped:

* @themotleyfool
* A huge bull market
* A framework I devised to help

My portfolio as of 10/3/21 ⤵️
1) $SHOP, 15% of port, +2,300% combined returns
2) $MELI 9%, +1,000%
3) $CRWD 7%, +300%
4) $SE 7%, +130%
5) $MDB 7%, +500%
6) $AXON 6%, +500%
7) $TEAM 6%, +220%
8) $DDOG 5%, +300%
9) $AMZN 5%, +1,600%
10) $VEEV 4%, +750%
11) $GOOG/L 4%, +700%
12) $U 4%, +40%

Continued ⤵️
13) $ABNB 3%, +10%
14) $ISRG 3%, +800%
15) $PAYC 3%, +1,000%
16) $DOCU 3%, +15%
17) $ETSY 2%, +300%
18) $SNOW 2%, +10%
19) $ZEN 1%, +350%
20) $PTON 1%, (30%)
21) $GBTC 1%, +600%
22) $ZM 1%, +7%
23) $TSLA 1%, 30%
24) $RSKD 1% (40%)

The MOST IMPORTANT aspect of each one is ...⤵️
Read 9 tweets

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