Compound Collaboration, Month #17
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. I hope to use these memos as an educational tool to teach them about the world. With any luck, managing the portfolio will become a shared activity to collaborate on as they grow up.

It is one of the main reasons why I invest.

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Performance from the first 16 months:
‌‌Month #1 Aug 2020: $ARKK +14%
Month #2 Sep 2020: $ARKG +0%
Month #3 Oct 2020: $BTC.X +286%
Month #4 Nov 2020: $BTC.X +146%
Month #5 Dec 2020: $NVDA +120%
Month #6 Jan 2021: $VT +17%
Month #7 Feb 2021: $PACB -32%
Month #8 Mar 2021: $TSM +9%
Month #9 Apr 2021: $KLIC +18%
Month #10 May 2021: $TTD +32%
Month #11 Jun 2021: $ETH.X +73%
Month #12 Jul 2021: $ETH.X +61%
Month #13 Aug 2021: $ROKU -37%
Month #14 Sept 2021: $ETH.X +24%
Month #15 Oct. 2021: $RBLX +36%
Month #16 Nov. 2021 $APPS -7%

Total Portfolio return: 53%

This month's addition: Vimeo

Quick Thoughts:

$VMEO has 200 million users, and less than 1% of those are paying subscribers.

Vimeo is shifting their strategy towards enterprise. They're going to start charging "per seat", which means that if one person in an organization is using Vimeo, it is easier to get other people in that organization to become paying subscribers as well.

70% of existing paid users were one free users. So their current users are a great place to start converting people.

This is a bet that this new business model takes hold.
Uday's avatar
Great! Is this an equally weighted portfolio?
Nathan Worden's avatar
@uplusk yep! I put the same amount of money into the new pick each month
Nathan Worden's avatar
@uplusk the longer time goes on the more it will look like an index, unless I double back and put more in to a name I’ve already bought.
Uday's avatar
@nathanworden great! You might also want to add some passive index exposure for the long-term. That's where the magic of compounding kicks in :)
Nathan Worden's avatar
@uplusk very much agree— I bought Vanguard’s whole world index back in January 2021 $VT but haven’t gotten back to the indexes yet. But I probably should! What’s your favorite index for the long term? S&P 500? Something else?
Uday's avatar
@nathanworden I try to diversify with global index funds, and what I'm mostly looking for is the exposure I want at the lowest expense fee :) Another thing you can look at is the size of the ETF or fund in terms of AUM and liquidity, which ensures a proven track record and ease of trade execution.

For U.S equities, my go-to funds would be $SPY and $VOO (for S&P 500), $QQQ (one of my favs, its the tech heavy Nasdaq 100 index). Then fpr size and factors you have enough options (large cap, small, sector-specific, value, growth). For foreign equities $EFA is one of the big ex-US developed markets fund, and $EMXC for emerging markets (emerging markets ex-China) :)

But feel free to add questions about specific funds, would be happy to help out!