The best investors are not born into greatness—they work hard to become great. Here’s a thread of modalities from some of history’s most successful leaders to help you achieve greatness:
- We know we mentioned Tesla in yesterday’s digest, but it must be mentioned: Tesla Inc. officially crossed $1 trillion in market value after Hertz made their 100,000 bulk Model S purchase. Apple Inc. Microsoft Corp., Amazon.com Inc., and Google parent Alphabet Inc. are the only other U.S. companies worth more than $1 trillion. Read more here.
- Commercial real estate is booming. Sales apartment buildings, life-science labs, and industrial properties rocketed commercial sales to more than $193 billion in the 3rd quarter. One major distinction with this boom compared to others - a relatively large number of deals were for single properties, rather than the big investors snapping up real-estate companies and portfolios with multiple properties. Read more here.
- Las Vegas has become a hot spot for the uber-wealthy. Vegas luxury home values recently eclipsed records from the 2006 housing bubble, and the top listings are in the mid-20M range, up from $10M-$15M range of previous years. The wealthy are highly attracted to relocating to Vegas, as Nevada has no state income taxes, and residents pay far less in property taxes than other states. Read more here.
- Verizon is partnering with Amazon to provide high-speed internet to anywhere in the world. The company plans to use the tech giant’s future satellite internet system for rural broadband. The partnership will mean adding cellular backhaul solutions to extend Verizon’s 4G/LTE and 5G data networks. Amazon does not yet have satellites in orbit, but there is already a signed deal on nine launches soon. Read more here.
- So many major banks and financial institutions are enabling crypto payments, we’re starting to lose count. Mastercard Inc. and crypto firm Bakkt Holdings Inc. are the newest to join in, partnering together to make it easier for banks, financial-technology firms, and merchants to offer and accept crypto payments. Banks and other financial institutions that issue cards through Mastercard will be able to issue cryptocurrency debit or credit cards that let people make payments and earn rewards in Bitcoin. Other cryptocurrency assets could follow. Read more here.
WHAT TO WATCH
- Can 3D printed homes solve the housing shortage problem? A community of 100 3D-printed homes is currently being developed near Austin, TX. Major homebuilder U.S.Lennar Corp. and construction-technology firm Icon are poised to start building next year for what will be the biggest development of this type of housing in the industry by far. If the ambitious 3-D printing project succeeds, it could offer a reprieve to the affordable housing shortage. Read more here.
- Netflix is doubling down, and they’ve barely scratched their total addressable market. The company plans to spend $17 billion in self-funded cash on content production and licensing this year, and they’re likely just getting started. Their growth plan includes various TV and film programming verticals and geographies, as well as gaming experiments that they’ve only just started. They’re expecting break-even free cash flow for all of 2021, and positive cash flow in 2022 and beyond. The total addressable market, according to management, is the 1 billion broadband households around the world, and with 213 million total subscribers, they still have a long way to go. Read more here.
- SpaceX could leave Boeing and Lockheed in the dust. Earlier this month, SpaceX reached $100 billion in market capitalization. If SpaceX keeps growing at this rate, the company could achieve a $1 trillion valuation before the end of the decade. If things continue going as they have been, therefore, by 2025, SpaceX's anticipated $36 billion in revenue will probably eclipse Boeing's and Lockheed's combined $32 billion that year (even assuming a generous 30% growth rate for the latter). Read more here.
- EV company Rivian gets extra points for ingenuity. Their R1T all-electric light-duty pickup truck, listing at $68K, is offering a unique perk: a whole camp kitchen, for only an extra $5k. The kitchen is entirely powered by the vehicle, flexing the power and possibilities of the EV industry. The standard has been raised, and it’s likely we’ll see other EV brands offering more experience-enhancing features as well.
“For Ruane, the fourth principle was the most important of all: invest in a small number of stocks that you’ve researched so intensively that you have an informational advantage.” - Richer, Wiser, Happier, by William Green
The quickest way to derail an investor: FOMO. Jumping on the next “moonshot NFT” or stock, or investment opportunity that’s projected to skyrocket can cause you to make riskier choices than you otherwise might. Make well-researched and informed investment decisions. Even risky investments should be backed by research and not solely the opinions of others.