It’s really hard for me to believe that in about a year and nine months creating content chronicling my investing journey here on YouTube that 20,000+ actual people have chosen to follow me and subscribe. I have built a portfolio that started (around Feb. 2019) with around $7,000 worth of 3M stock (shares I bought on a an employee share purchase program at a discount) from my 5 years working at 3M and around $4,000 in cash for a total value of $11,000. That portfolio as it stands today is worth $150,852.17 (11/21/2020), now I consistently contribute to the portfolio so that is not obviously all from gains (around $42k or 38.5% is capital gains). At any rate it has been a lot of fun, I have met so many other investors and content creators, and really am enjoying the process and progress made through the channel and the portfolio. So I decided to do a giveaway, rules to enter are as follows:
To enter the giveaway you must “Subscribe” to my newsletter by clicking “Subscribe Now” here on the right side of the website.
Also drop a comment here on this blog post, saying your preference, whether it is a t-shirt or a mask and keychain (these will come together). There are 2 XL t-shirts, 2 XXL t-shirts, and 2 Mask/Keychain combos, so there will be 6 winners.
Your comment should simply say either “t-shirt XL”, “t-shirt XXL”, or “mask\keychain”, I will do a follow up drawing on these categories on Tuesday evening 11/24 at 8PM EDT so 5PM EDT on Tuesday evening 11/24 is the cutoff so I can add them all into a spreadsheet to get ready for the lives stream to announce the winners. Thanks again for the support and best of luck on winning!
2020 has been a very different and strange year all the way around. From the global pandemic, to having social distancing become a new way of life every we go now seemingly. Also 2020 has wound up becoming the year of the rise of the EV (electric vehicle). Up to this point EV’s were mostly conceptual and gimmicky (other than Tesla’s) like the Nissan Leaf and Chevy Volt. I even had a neighbor that leased a Nissan Leaf a couple years back. We lived around 40 miles north of Atlanta, GA and he bought his Leaf thinking he would use it as his commuter car (the Leaf only had a range of around 100 miles then, not sure what it is now). His daily commute round trip was around 60 miles in brutal bumper to bumper, stop and go traffic. Needless to say he soon concluded he could not use it as a commuter car and ran out of charge a couple times trying to make it home. He wound up having to pay quite a premium to break his lease and get rid of the vehicle. This along with me not even knowing about Tesla’s all that much back then, made it so that an electric vehicle was not even a consideration in my mind.
Enter 2020 where I get introduced to SPACs and the market for electrification of everything, and a push towards renewable energy sources is taking its proper place on the forefront of most of our minds now. This brings me to Fisker, Inc a new startup electric vehicle auto maker who has actually been working on EV’s for many years, well not Fisker, Inc, but the man behind the company, Henrik Fisker. Henrik Fisker co-founded his intial EV endeavor Fisker Automotive in 2007 after securing a $5.2 million investment from Gianfranco Pizzuto, an Italian businessman, among some other Palo Alto Investors. Fisker is responsible for designing many premium cars such as the Aston Martin DB9 and V8 Vantage, Artega GT, and BMW Z8. He also served as design director and sat on the board at Aston Martin. Fisker Automotive’s problems started with the recall of its battery by A123 Systems in December 2011, followed by a second recall by A123 Systems in March 2012 and eventually a bankruptcy of its battery supplier A123 Systems in August 2012, the costs involved regarding a recall and repairs to customer cars. This led to the demise and eventual selling of his first EV startup attempt Fisker Automotive.
Fastforward to today October 15, 2020 where Henrik announced his joint partnership with Magna to build and manufacture his newest EV the Fisker Ocean. Fisker has laid out pricing for the Ocean which will have a starting price of $37,499 (with up to a $7,000 federal credit making it even less). This really is a game changer and brings a very nice, luxurious, economical SUV into a price range that many who never thought of owning an EV before may consider now. Especially after seeing the interior and exterior of a Fisker Ocean:
Me and my wife liked it so much, we put down a deposit on one, especially since it was only $250 and is fully refundable if you change your mind. The Ocean has a range between 250 miles and announced today up to 320 miles on a single charge, so EV’s have come a really long way and the gap between a gas powered vehicle and battery powered has closed tremendously:
Fisker, Inc is also coming public via a SPAC (special purpose acquisition company) Spartan Energy Acquisition Corp and currently trades under the ticker symbol “SPAQ” on the NYSE. The company will be merging and becoming its’ own standalone company Fisker, Inc and trading under the ticker symbol “FSR” so long as the business combination vote passes on October 28th when there will be a special proxy vote meeting. So while this is a completely different business model and approach the Henrik is taking versus the approach Elon Musk of Tesla has taken. This very well could garner tons of attention, and truly become a player in the North American and European automobile industry. Alot still has to be proven, but one thing no one can say that Henrik Fisker is a man on a mission that is dedicated, driven and won’t stop until he succeeds. This is another reason I believe many will rally behind Fisker, Inc, as we can all relate. We have all failed at some point in life, but failure doesn’t have to define us it can help mold us and make us better. This is what is unfolding before our eyes here with Henrik Fisker, and Fisker, Inc!
2020 Can be characterized by many things, from the coronavirus, to a wild election year, to the economy moving to everything stay at home. For me one of the few bright spots of 2020 is the rise of the SPAC as an investment vehicle for retail investors to finally get in on the wealth building action of wall street. SPAC is an acronym: Special Purpose Acquisition Company, also sometimes referred to as a blank check company. These are publicly traded shell companies that come to market via a no hype IPO, and these companies have one stated goal in mind with their cash on the balance sheet; to bring a private company public via a merger/acquisition.
The frenzy really began to catch on when the SPAC VectoIQ (VTIQ) announced that they would be merging with startup Nikola Motors, a pre-revenue early stage startup with some lofty hydrogen fuel cell/electric vehicle plans for the semi truck industry. They also had a very boisterous and flashy CEO Trevor Milton (in whom I interviewed here) that seemed to make a new outlandish claim about what Nikola would become every other day. The retail investors flocked to VTIQ like sharks to bloody waters and the stock went up over $90 post merger from where it started at $10 (where mostly all SPAC common shares start trading). After coming public, the scrutiny of Nikola became great and there was a nasty fall out that continues today with the former CEO/Chairman Trevor Milton and the company. The reason I shed light on this company in light of the rest of the SPAC market, is shortly after this merger occurred many other companies began to choose the path of coming public via a SPAC. Hyliion, BurgerFi, The Tattooed Chef, Golden Nugget Online Gaming, Fisker, Inc, and many others started lining up and setting the stage for one of the wildest rides I’ve ever been on.
Those few companies I named like Hyliion followed closely behind Nikola motors coming via a SPAC but that trend hasn’t slowed one bit, and more decent companies are announcing there intent to come public via a SPAC on a consistent basis. This is really setting up the potential for some of these to really be potential 5-10x companies that have great business models you can see this growth trend reflected below:
While Nikola left a black eye on SPACs, the method of entry hasn’t slowed. The way to play these is to really do a deep dive into the company and the leadership when announced and the ones that have potential, jump in and get ready for a ride. It’s a volatile niche market, but that volatility provides opportunity, also provides the chance for some serious gains. My portfolio this year has seen the most % upside by far that I’ve ever seen, and I plan on investing around 50% of my portfolio in SPACs for the foreseeable future.
SPACs are here to stay whether Wall Street likes it or not, while some have SPAC fatigue, I am invigorated and ready for the next announcement. Waiting and watching, ready to pounce!