Having a balanced portfolio is key to growth, we all know that. There's tons of great articles on Seeking Alpha outlining this. Our unique take on this portfolio is that you can do it with literally any account balance. You don't need to be accredited, nor do you need to have $10,000 in the account. This is what we do, we own 100% of the stocks in the portfolio. Here we go.
Get an IRA
Before starting, it's important to open an IRA suitable to your needs. If you are lucky enough to have a 401k with your employment, good for you! If not, you can get a Roth IRA, SEP IRA, or Traditional IRA. Brokerages are very similar in their offerings so you're not going to get a much better deal at one vs. another. Having said that, we use TD Ameritrade, now Schwab (SCHW).
Look at your circumstances
We are a small family with one child (and 6 pets!) who is 6 years old, in private school. Life circumstances should determine the blend of your portfolio. Investors should understand the business model. The reason I mention some of these nuances, is because our child loves theme parks, which brings us to our first portfolio stock.
(FUN) CEDAR FAIR
We used to live in Charlotte, NC where there is Carowinds, and we had a season pass. Carowinds is owned by publicly traded Cedar Fair (FUN) and that was one of the first stocks we bought for our family IRA account. It's not necessarily a good stock pick as in we have researched the fundamentals, and calculated a book value to share price ratio and it generated a buy signal. Carowinds is just one of the parks operated by Cedar Fair, they also include Cedar Point, Kings Dominion, Knott's Berry Farm in CA, and many others. They have season passes for 'all parks' if you are going to travel, it's a great option. These parks are about thrill rides, not shows and characters. Carowinds doesn't have the 'magic' that Disney has (we went last year), but what it does have is amazing roller coasters that you never get tired of. The margins in this business are not fantastic and a lot goes into managing a park. However, spending a lot of time in these parks, I don't see this business model decaying over time. It makes people happy. How can you quantify that?
(PLNT) PLANET FITNESS INC CLASS A
We have had family memberships at a number of gyms, including the YMCA in multiple cities, and so we know that you can't beat Planet Fitness. The price is amazing and they have tons of equipment, it's clean, and well managed. They have a red light therapy room (similar to a sunbed, but it's healthy for your skin). No contract. What can you lose? The competitors have to do a lot in order to overcome all the value in Planet Fitness, and many of them aren't really trying.
(IBM) IBM CORP
The majority of banks run on IBM Mainframe technology using Cobol/DB2:
In 1997, the Gartner Group reported that 80% of the world’s business ran on COBOL with more than 200 billion lines of code and with an estimated 5 billion lines of new code produced annually. The fundamental constructs of the banking software world haven’t changed much since then.
IBM is also investing heavily in the next generation technologies, including Blockchain, AI, and other trends. IBM is not a dinosaur that's about to be extinct. They remain a Monopoly in the industrial I.T. / computing sector. Companies like banks will hire IBM as opposed to smaller consulting firms, outsourcing firms, or other individual freelancers. IBM has an impressive client list, which includes Central Banks.
(PLTR) PALANTIR TECHNOLOGIES INCLA
Palantir has been building what is effectively AI for a long time, and they have no competitors of merit. This is a complex and largely misunderstood business, but their revenues are strong and they are exploiting a niche in corporate intelligence. Palantir replaces the need to hire outside firms for intelligence whether it be identifying where Oil deposits are in a wide area, or for political security concerns if you operate in potentially dangerous areas. Palantir's applications range from your local police station to the world's biggest hedge funds that need intelligence AND need to incorporate it in their model. The play here is intelligence, and they are on top.
(JTAI) JETAI INC
I invested in Jet Token in the Crowdfund as well as bought some more when it went public. There was massive dilution due to the merger however they did get public and now they are looking to grow. The fact is this is a tough business but Jet Token got it right. They are competing with huge companies that have deep pockets - if they have made it this far it just goes to show the grit they have.
(NOC) NORTHROP GRUMMAN CO
Doing research for the UAP disclosure and how to invest in it, for this article, we identified several companies that will profit from a transparent, open market regarding advanced technologies. This is one of our favorites. This goes for saying for any stock, if a stock is $450 you can buy 1 share, you don't have to buy 100 shares of a stock. Some brokerages even offer micro shares.
Northrop Grumman is a mainstay in the defense contractor field, and we believe builds advanced craft that are currently not known to the public. When they are revealed, and these operations are public, stocks like this will soar (we think).
(SBUX) STARBUCKS CORP
Who can live without Starbucks? Inflation is a real thing here, and the espresso is now not a quad its' actually 3.25 ounces (previously 4 ounces) due to inflation. But Starbucks does several things right and they have no real competitors:
- There is a Starbucks at every corner of USA, even when you drive in the country, you'll probably encounter a town with a Starbucks, eventually.
- Great coffee, just amazing compared to competitors like Dunken Donuts.
- Great snacks, such as the 190 cal egg bites, and other healthy snacks.
- Great service - they work so fast and so hard, and they obviously train them well.
We see Starbucks as the new 'fast food' McDonalds (MCD) of the generation.
(WMT) WALMART INC
Sam Walton built up this retail powerhouse over a period of decades, and Wal mart is now an entire economy of it's own. They sell coffins (you have to order online) as part of their 'Cradle to Grave' directive. Shoppers go here because in the Supercenters it's one place you can get socks, bananas, and a DVD movie all in the same place, and with good prices and good choices. Wal Mart has a deal with the Department of Defense to supply needed resources to the population during times of war (they are connected via secure network for placing orders, and have policies in place). Bottom line is that nothing is going to stop Wal Mart, at this stage of the game.
(CENN) CENNTRO ELEC GROUP LTD F
Cenntro is not Tesla (TSLA) for sure, but it also represents a bargain value play. Cenntro not only has EV Class 8 trucks, they have a platform where you can build your own EV, so to speak for dealers and manufacturers. They are setting the standard in economically produced electric vehicles and heavy electric trucks.
Gab.com (Private) - Crowdfunding round @ Gab.VCCross.com. Censorship is a real problem in the United States and lawsuits are flying left and right between the Social Media platforms and the Censors. Gab.com is the solution, offering users a true Free Speech platform, which follows the law to the letter and to the spirit. Gab is currently raising $5m at a $250m valuation via Crowdfunding, and has a $330 USD or 10 share minimum ($33/share). The value proposition here is that if Gab's userbase is now X, and in 2 years it's going to by Y, and Y = 4X, then the equity in your investment should be at least close to the pace of growth. However, investing in private companies is risky and you should only do so with funds you can afford to lose. What's cool about Crowdfunding is that you can dip your toe in the water for only a $330 minimum just like we did with our stock portfolio here.
Anyone can make a family portfolio to grow your savings with limited deposits, with a mix of companies that you know are going to grow, and if you are wrong on a couple, the overall value should grow as the market does. Now is a great time to invest in stocks, and not income (such as rental properties) because the market is down and interest rates are up.