Monday Madness - 5/9/22
Overall, 9 stock positions increased/added.

Additional investments into my Stash portfolio (4).

$BMBL - $35.66 consensus price target. DCA down from previous buys.
$CMPS - $73.00 consensus price target. DCA down from previous buys.
$SFIX - $12.20 consensus price target. DCA down from previous buys.
$YUM - $135.95 consensus price target. DCA down from previous buys.

None of the above, with the exception of $YUM, are core positions, I'm banking on the differential in the current share price vs the anticipated upside. Willing to hold, but will take profit when it presents itself.

Additional investments into my M1 Finance "Fat Cat Investing" portfolio (5)

Anyone familiar with M1 Finance knows how the 'pies' work, but for those that don't, once the pie is setup and weighted you have very little control, aside from adjusting percentages, in controlling individual buys. Since I added $CUBE to the "Fat Cat Investing" portfolio today, I deposited an off-schedule deposit to force a 'buy' resulting in the purchases above, as dictated by my weighting. The addition of $CUBE brings this portfolio up to 49 holdings.

The 'Fat Cat Investing' portfolio was down 3.05% overall today and is a part of my ongoing "Real Estate Rumble".

These are now "core" positions in this IRA, so unless there is a fundamental change in one of the REITS - all 49 are long term holds.
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According to Bloomberg, nearly $1.8 billion was raised by psychedelics startups from public and private investors in 2021
Psychedelics are known for being illegal street drugs. However, investors are looking to pile money into startups looking to turn them into medicine.

$ATAI, which is notably backed by Peter Thiel, received the most funding in 2021 at $416 million. GH Research $GHRS received the second most funding at $285 million. Compass Pathways $CMPS, one of Kevin O'Leary's holdings, received the third most funding at $144 million. Kevin O'Leary also owns Mind Medicine $MNMD.

Interestingly, Seelos Therapeutics $SEEL received the fourth most funding however, management has diluted their stock so much that it's now a penny stock with one of the worst returns in the market.

For Field Trip Health, their ticker is $FTRP. $CYBN is the ticker for Cybin.

7 months ago, I wrote an article detailing why psychedelics will become an emerging new class of medicine. In the article, you can learn more about the many benefits that psychedelics have that make them "disruptive" to traditional medicine.

The main way that psychedelics are "disruptive" to traditional medicine is that they hold curative properties and aren't habit-forming. At the same time, there are a lot fewer significant side effects.

Even better, there's research that finds that psychedelics have more potential to be useful as medicine than CBD.

While the market for psychedelics as a medicine is very young and pending legalization in California and other states, some investors, especially some notable ones, aren't afraid to bet big on this space.
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Amid the market chaos, consider looking at psychedelics
If you want a more detailed analysis of it or want to view the sources of my research, click here.

Both the cannabis industry and the psychedelics industry are dependent on deregulation. However, unlike cannabis, there are many more stories of how psychedelics have made life-changing improvements in people's lives and there's growing research that psychedelics could bring promising treatments for mental illnesses.

And outside of mental illnesses, there are many more possible applications for psychedelics than compared to cannabis.

The benefits of psychedelics over traditional medicines include:
  • long-lasting relief
  • much lower risk of addiction
  • lower risk of significant side effects

Because governments are more focused on legalizing cannabis and less focused on legalizing psychedelics, many investors are hesitant to invest in this sector. But, that hasn't deterred legendary investors like Kevin O'Leary, who has invested in $MNMD and $CMPS, or Peter Thiel, who invested in $ATAI.

The margin of safety for speculative investors looking to get into this space is high after the market crash. It's important to check their balance sheets as clinical trials are expensive and they'll need to hold out longer for legislation to pick up their pace.

As for legislation, California is leading the way in legalizing psychedelics. Hopefully, more states will follow suit.
Jack Brady's avatar
$95.9m follower assets
Asymmetric Bets
First memo so here goes nothing...

To start lets broadly define an asymmetric investment as one where potential upside far outweighs any potential downside. Mind you, that is not to say there is no downside risk.

Ok, let’s rewind a bit. In January of 2020 I had less than 10k in my bank account and over 100k in student debt. I had a hard time saving and when I did it was just sitting in my checking account collecting dust.

Around this time I started to take an increased interest in the market and decided to put some of my 10k in savings on the line.

My first dip in was ice cold, I got caught up in some penny stock hype and bought the top and was left a bag holder (cough cough $GNUS $IBIO $BYFC). But I learned a lot and realized two things that formed the foundation for the following 12+ months.

1) Know what you own aka dont just buy what some random guy on twitter says is going to go up (special thanks to @gannon for hammering this concept into my brain, checkout his newsletter which really helped me early on)

2) Buy and hold. I am simply not a good trader when it comes to short term swings and get to emotional. Plus starring at your phone all day isn’t healthy. However, almost everything that I have held onto for longer than 3-6 months is up at least 15% or more.

Back to asymmetry, given my limited funds spreading them out over 40 stocks seemed like a good way to dink and dunk my way to a 8-10% gain. Nothing wrong with that strategy but it wasn’t sexy enough for me and I simply wanted more (disclaimer my appetite for risk tends to be very high, for better or worse).

After doing a ton of research on a number of different options I landed on Bitcoin and decided to throw my entire life savings in it. Along the way I invested roughly another 65k of new income into it and slowly built my position larger and larger.

I chose $BTC.X because in my eyes it had the greatest potential to 10-100x given economic factors like rising inflation and mainstream adoption as a store of value from major corporations and wealth managers. While it was no sure thing at the time, I held and still hold a strong conviction on Bitcoin which has helped me navigate the periodic price “crashes” it experiences.

Other options I looked at were $SQ $NVDA $TSLA $SHOP and $SE (all of which I still plan to invest in for the long term, along with $CMPS).

As of this writing, Bitcoin is hovering around $55k and the last 14 months have been life changing and I believe there is still more room to run in this current crypto bull cycle.

While I understand making highly concentrated asymmetric investments isn’t for everyone, it has worked for me.

Want to finish by thanking @mcd for making such a fun and collaborative platform. I have been active on @commonstock for about 6 weeks and have learned a ton and connected with a lot of really smart people like @nathanworden. Excited for more and more users to join and contribute and I look forward to posting more frequently and promise they won’t be as long.

I am an open book for those who may have any questions!
Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.