GNUS

Genius Brands International

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-$0.70 -51.69%
Jack Brady's avatar
$108.9m 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!
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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.