My main goal was to build an investment and cash portfolio of $1,120,000* in 1500 days**, starting from 1/1/2013 and ending in February of 2017. I made my goal last year and my 1500 Days are over, but in the interest of openness, I’ll continue to share my numbers.
Why I’ve Outperformed the Markets
I’m a geek at heart and have always been obsessed with technology. When I started my first job way back in 1998, I started buying tech stocks. I got burned in the dot-com crash of 2000, but that didn’t phase me.
Today, four stocks make up almost $500,000 worth of my portfolio: Google, Amazon, Facebook and Tesla. I bought Google in 2004 (IPO) and the rest in 2012.
Traditional companies like Walmart or Exxon are easy to understand. The former is a retailer and the latter is an oil company. Easy. No further information required.
Technology companies are often complex and misunderstood. Consider my four holdings:
- Google: You know it as a search engine, but it’s really an advertising company. Google also has the most popular phone operating system in the world (Android), Maps, Gmail, YouTube, a browser (Chrome) and computers with a chrome based operating system (Chromebooks). All of these products help drive ad sales. And if that isn’t confusing enough, Google is also working on autonomous cars and conquering death.
- Amazon: Does anyone shop anywhere else online? No. But Amazon also offers market leading cloud services in Amazon Web Services, The company is expanding into delivery (some of it with drones), and even retail stores (gasp!).
- Facebook: This is a social network on the surface, but similar to Google, an advertising company underneath.
- Tesla: On the surface, Tesla is an auto and energy company. Under the covers, it’s a battery business and software (autonomous driving and battery management) technology are its real assets.
Technology companies are different from others in their potential to disrupt traditional businesses. One needs to look no further than the empty malls all over the United States to see the monster that Amazon has become. Google and Facebook are taking advertising dollars from TV and print. Tesla is disrupting traditional automotive and energy companies simultaneously.
All of this has worked out very well for me. Here are how my picks have performed since I started the blog in 2013:
- Tesla: >1000%
- Facebook: >500%
- Amazon: 301%
- Google: 171%
For comparison, the S&P 500 has returned about 72% with dividend reinvestment.