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Compound Collaboration, Month #15
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.
Performance from the first 14 months:
Month #1 Aug 2020: $ARKK +45%
Total portfolio return: 86%
This month's addition: Roblox $RBLX
Roblox is a video game company that is enabling developers to create games and get paid for doing so. Rather than trying to build everything themselves, they are creating tools so that others can build whatever games they want, and then help them distribute and monetize their games.
Some impressive stats, courtesy of @sidnistandard (you should follow her):
- More than two-thirds of U.S. kids aged 9 to 12 play Roblox
- Those kids spend an average of 2.6 hours a day on Roblox
- 43% of Roblox users are 13 and over
- The fastest-growing demographic is ages 17-24
- Ad solutions are being made available to creators as a revenue stream
- Roblox has 43 million daily active players
- Revenue is expected to be between $167m & $170m, up ~98% YOY
- Roblox is on both mobile and desktop
- Virtual concerts show the potential for further digital events
Risks are that the young users might 'age out' of Roblox as their tastes change when they get older. But video games as a career, live events, and full economies being built might be able to mature with the current users. That's this month's bet.
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