Markets transfer wealth from the impatient to the patient. Michael Milken argued that the “best investor is a social investor.” Understanding that explains Snap’s turnaround story.
Yesterday, I posted an article on my Anti-Portfolio, which included my investment approach with regards to public media stocks. I referenced two stocks I actually did invest in, one of which was Snap – up 4X since I got in.
I wouldn’t yet say that Snap was a flashback to other foundational stocks I referenced in the Anti-Portfolio primer; but I explained that:
“A company we [at WatchMojo] eventually came to appreciate more and more. Early on, admittedly, we joked that we didn’t even understand it. Born in 1978, I consider YouTube my “native” web video experience. I think someone born in 1998 may favor Snap and someone born in 2008 may go with TikTok, but over time, YouTube’s massive catalog of pretty much all of the video content in the world that matters gives it a moat: as young kids grow older, they will seek the broader catalog YouTube has. That said, I felt like Snap was a monster opportunity after its humbling post-IPO. A bit like Facebook (but even more pronounced), Snap’s IPO was lackluster and its stock traded downwards. But unlike Facebook, which IPOd late relative to others, Snap IPOd early, partially because founder Evan Spiegel had incentives to do so. However, to its credit, Snap had evolved into more than a one-trick pony, and its efforts with Discover and video programming were astute. I felt that it looked at YouTube and Facebook’s weaknesses and then developed a product that satisfied its users and delighted its marketing clients. I discussed it a bit more in my 2019 video expressing my bullishness. Seeing them bring on all-star sales executive Peter Naylor (whom I followed while he was at Hulu) gave me further assurances that the company was on the right track and the results speak for themselves.
Today Snap ironically launched a product that effectively inspires itself from Tiktok, in the game of musical chairs where social networks all start to look like one another as users age, and competition for growth intensifies.
Stick around, this week we’ll expand on my actual current portfolio and I’ll share which other stocks make part of it, and why.