ARK Genomic Revolution ETF

ARK Innovation ETF

Bitcoin

Ethereum

Kulicke & Soffa Industries Inc

Nvidia Corp

Pacific Biosciences of California, Inc.

Roku, Inc. Class A Common Stock

Taiwan Semiconductor Manufacturing Company Ltd.

The Trade Desk, Inc.

Vanguard Total World Stock ETF

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](https://share.commonstock.com/op529ldpceb).
![](https://cdn.commonstock.com/6fae90803c4f9d98c763d2244cf47933bf489aed4427bb8eeefbe6a4e08d6674-5616x3744.jpg?w=704&fit=max)

Performance from the first 13 months:

 [‌‌Month #1](https://share.commonstock.com/8MJpbjZ0tcb)   Aug 2020:     $ARKK       +32%
 [Month #2](https://share.commonstock.com/AuwAWwW0tcb)   Sep 2020:     $ARKG       +21%
 [Month #3](https://share.commonstock.com/i34eUDT0tcb)   Oct 2020:     $BTC.X      +267%
 [Month #4](https://share.commonstock.com/PbY7Z520tcb)   Nov 2020:    $BTC.X      +133%
 [Month #5](https://share.commonstock.com/jSI6tTBEodb)   Dec 2020:    $NVDA       +55%
 [Month #6](https://share.commonstock.com/bvXWcdFpceb)   Jan 2021:     $VT             +11%
 [Month #7](https://share.commonstock.com/R6Pi0MVyTeb)   Feb 2021:     $PACB         -16%
 [Month #8](https://share.commonstock.com/PcjV0AmHrgb)   Mar 2021:     $TSM             -1%
 [Month #9](https://share.commonstock.com/6tAMVXHxthb)   Apr 2021:     $KLIC          +13%
[Month #10](https://share.commonstock.com/6tAMVXHxthb)  May 2021:    $TTD               0%
[Month #11](https://share.commonstock.com/9wgOQvuakib)   Jun 2021:     $ETH.X        +42%
[Month #12](https://share.commonstock.com/0NQq9NzK7ib)   Jul 2021:      $ETH.X       +32%
[Month #13](https://share.commonstock.com/fLVAszP7Yjb)   Aug 2021:    $ROKU -15%

This month's addition: Ethereum

The bet is that Ethereum in 2021 is like Bitcoin in 2017. Here's the chart:

![](https://cdn.commonstock.com/ad2a0661e43ec7667b08a79a140c3fc61a5e561542b375a97f70fe720a8852cb-2222x1116.png?w=704&fit=max)

If this correlation continues through the end of the year, Ethereum could end up anywhere between $10k and $20k.

The theory for why the two are so correlated is that both are priced using Metcalfe's law.

**Metcalfe's law** states that the value of a network is [proportional to the square](https://en.wikipedia.org/wiki/Quadratic_growth) of the number of connected users of the system.

Example: A single phone is useless, but the value of every phone increases with the total number of additional phones in the network, because the total number of people with whom each person can call increases exponentially. Similarly, in social networks, the greater the number of users on the platform, the more valuable it becomes to the community.

Ethereum, like Bitcoin in 2017 is becoming exponentially more valuable as more people join the network.

Rachel Wolitzky

The explanation you gave for why $ETH.X is so unique. Most people just say "I'm buying ETH because it's hot right not and it's cool" whereas your connection to Metcalfe's Law is one I haven't seen yet. 

Super interesting, can't wait to see what you pick for next month.

Grace Gruber

20 years is a phenomenal holding period and I hope you manage to keep it up! Looking forward to following what you do month by month :)

Matthew Bruce

I love how you are going to try to make it a point to collaborate and manage the portfolio with your future kids. Providing them with that educational asset will be one of their greatest life lessons growing up. Reminds me a little bit of "Rich Dad Poor Dad" !

Alex Biestek

https://en.wikipedia.org/wiki/Quadratic_growth

Quadratic growth - Wikipedia

Compound Collaboration, Month #14

Bought 33% more ETH

This member is verified by the Commonstock team based on their contributions to the Commonstock community. 

Verified Member

This member connected a brokerage account and is sharing trades and portfolio performance with the community. 