The Hippie Investor's avatar

$2.4M follower assets

New macro narrative starting to affect the market. Recession coming, Fed will be less hawkish than last week’s talk. Financials and commodities down. Retail and Ads still iffy but some riskier equities getting bought.
Crazy to think that $MELI with all the complications and challenges of scaling a business in Latin America probably has a better moat and less headwinds for growth than $SHOP for the foreseeable future (18-24 months), but it's probably true. The EM risk is highly unpredictable but I have more confidence that $MELI can handle the challenges of their environment than $SHOP can. I still like $SHOP but there's only so much you can do if demand slows and there's plenty of options to fulfill it. Maybe I'm just echoing the prevailing weekly wisdom here and it's overly affecting my thinking.
Feel like $SOFI is about to rip if today's overall market rally has any legs. This stock probably has one of highest mixes of + and - sentiment and tailwinds/headwinds. Earnings next week. I bought a little over a hundred shares so I could sell CCs on it too, but I sold a call when the stock was trending down for like $8 premium and $8 strike, expiring next Friday. Now regretting that move. Might sell some other holdings to double down on a possible swing trade or to keep as a long position should my shares get called. I don't know. Just thinking through it here.
I saw they promised a lot of great stuff in their 2020 (or 2021) analyst day. Growing faster over the next 5-years than the last. Will be interesting to see if they can do that despite the rise in competition.

I see that they already capitulated on their 750M active account goal
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Socially Responsible Investing
If it costs more to be a socially and environmentally conscious company, what’s a fair return on investment?
5, 6, 7%?
I know this depends on individual needs too.
There are some investments I’d be happy with a 5% return on, if profits were secondary to ethical decisions.
This is me looking into $POSH and $BIRD
I don’t think they’re great businesses or great values but I’m interested in investing in them bc their B Corp status and their sustainable business models. I wouldn’t be interested if I thought they were crap companies either. I’m not looking to lose money in them. As an exercise in thinking about socially responsible investing, if it costs more or profits less for the company, obviously, it follows that investment returns will be lower.
One interesting way I think this could impact valuations though is if you have a large enough block of investors with this mindset, you’ll have higher valuations and multiples on these companies because of the different set of reasons and expectations for an investment in the companies. I don’t care and other investors don’t care if it’s overpriced by standard valuations that could diminish future returns because the expected return is already lower and there’s more emphasis on how the company is responsible rather than exceedingly profitable. With the caveat being of course that the company is a well run business overall.
Glad $ROKU didn't take off after YT agreement. Now I can buy more next week. Still down about 20%. Think the failed run is mostly technical and pre-planned shorting based on pessimism in deal getting done coupled with CPI expectations and Fed meeting next week. Feel good about adding down here and then just leaving it alone when it takes off.