Compounding Collaboration, Month #7
Every month I put aside some money into a portfolio aimed at long-term bets over the next 20 years. I will be gifting this portfolio to my future kids someday- in the hopes of using it as an educational tool alongside the memos I write to teach them about the world and to have a shared activity to work on together as they grow up.

It is one of the main reasons why I invest.

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Here is the performance so far from the first six months:

‌‌Month #1, August 2020: $ARKK +48%
Month #2 September 2020: $ARKG +46%
Month #3 October 2020: $BTC.X +280%
Month #4 November, 2020: $BTC.X +145%
Month #5 December, 2020: $NVDA +5%
Month #6 January, 2021: $VT +3%

You can click on the links above and see the reasoning behind the past investments.

One thing I've been thinking about this month is how this portfolio will look to my kids in the future. I imagine it will somewhat resemble a sedimentary rock layer:

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The investments I pick will all say something about the 'era'; the investing environment, and where my head was, at the time.

Each of the picks I made will say something about my hopes for the future. It will be like a little investing time-capsule for my kids to glimpse at the past with.

With that perspective, this month I am investing in Pacific Biosciences ($PACB), a company that makes a machine that does long-read genome sequencing. My aim for this pick is to communicate the hope I currently have that advances in the genome sequencing and editing space will ultimately lead to the eradication (or at least management) of some horrible diseases.

10-20 years from now, I hope I get to have a conversation with my kids about how the world became a safer place through our incremental improvements in understanding the human genome. And if that doesn't turn out to be the world of the future, I still want the hope for a future like that to live on.

Sometimes, we can learn a lot about what is possible in the future by digging up the gems preserved as fossils in the sedimentary rock layer of the past.

Here's to investing in that future.
Nathan Worden's avatar
I need to write more about why I believe in $PACB specifically, but here is my first memo mentioning them that I wrote back in December of last year.
Shane James's avatar
Great to see wealth passed on. Don't stop!
Nathan Worden's avatar
The more I talk to parents/grandparents/mentors, the more I realize that this kind of thinking is a huge factor in stabilizing and enabling the lives of kids / grandkids.

It's a huge leg up- and an enormous privilege to be on the receiving end as well as to be in a place financially to plan that far ahead and be on the giving end.
Shane James's avatar