Investing in Future Tech monopolies | How to invest in the US stocks |#fundamentalanalysis
then i'll buy airbnb only 750 dollars left so i'll put the entire amount it is the trade and i will get airbnb please note that i have also been able to buy fractional shares right so you can see 4.65 hi everyone welcome to today's video so today we are going to continue from our yesterday's video where we were talking about the u.s stock markets i showed you which stocks i am going to buy or rather which stock i bought yesterday and today i am going to do three more investments in three different us talks and i will explain you the reasons why so i will do the entire fundamental and technical analysis and i will show you why am i making these investments but before we jump into the video and i share with you which three stocks i'm talking about today so let me cover some of the key questions that you had asked me yesterday so many of you asked me that hey why are you investing in the us market have you lost faith in the indian market the answer is no i am very much bullish about the indian market in fact i am more bullish about the indian market and i will continue to make investments in the indian market now then why am i investing in the u.s market because my portfolio size is big now i need to diversify therefore us is one of the good options and therefore i'm investing it that's one of the reasons second more important reason is that i'm doing it from a learning perspective if you read my commentary on different social media platforms i always advocate that the best way to learn about stock market is that pick a little bit of money and invest then you automatically will follow news you automatically will start following the companies you will do a lot of analysis on those companies these things will happen automatically so you are putting yourself in a situation where you are forcing yourself to learn so i am also doing the same with the u.s market that i am making investments there so that i learn more about the us market i can bring that knowledge and start contextualizing my investments in the indian market also so that is the second reason third some of you asked me that hey is u.s market better than the indian market the answer is nothing like that all the markets are good there are always good opportunities to make money in the us market also indian market also and to be honest the indian market or any market for that matter it is strongly interlinked with the u.s and european markets and
especially the u.s market so that is one important point that you need to remember and final point is that i am investing in the u.s market but i am investing in the us market for certain types of stocks i am doing it in a very methodical and thought out fashion that in the us when i am trying to invest i am looking for global monopolies that is the reason why i am making investments in the u.s market and certain u.s stocks
so my goal is to find the next monopolies in the u.s that is the intent with which i am investing and i am going to invest five to ten percent of my portfolio in u.s stocks now i know that many of you would want to just watch the summarized version of this video so these are the three stocks that i i'm buying you can check me buying these stocks and then i will give you a complete analysis i would request that you stay till the end of the video to watch and understand all the analysis that i am doing because this same analysis can apply to indian stocks also so please watch the video till the very end but if you just want to know the name of the stocks and see me making investments watch this short clip and i'm using the ind money app to make these investments so i'll buy shopify linux this is the second stock that i'm buying and i'm again going to buy 750 dollars worth of stock so 22.50 left in my
account 750 please trade and done so i have bought shopify as well now i'll move on to the third stock which is uipath so i'm going to buy this and i'm going to place an equal amount so i buy uipath for 750 dollars i place the trade and done it takes a little bit of time sometimes then finally i am going to buy my last stock in this tranche this is airbnb so i'll search for airbnb then i'll buy airbnb only 750 dollars left so i'll put the entire amount it is the trade and i will get airbnb please note that i have also been able to buy fractional shares right so you can see 4.65 of airbnb and these are my us stocks so the first company that i bought yesterday was coinbase you can check the video here and now the second company that i have bought is called as shopify now people who do not know shopify let me just quickly share my screen and let me just take you to their website what do they essentially do let me give you a very brief synopsis of their business model so now what is happening is that you might have observed yourself many people are now interested in starting their own businesses now it has gotten easier than ever to start your own digital business okay not physical business digital business it has become supremely easy to do it all you need is a website you need some kind of marketing sales channel and you are good to go you can start selling any type of product be it a course create like t-shirts sweet like paintings meet like anything that you want to sell you can do that so essentially what is shopifying trying to do shopify is trying to become an end-to-end platform right if you go on shopify open your account and if you want to start your own small business you can do that via shopify shopify will take care of all the pain points that you will have as a business owner now you would ask me that you said okay what are like some of the key pain points that you can talk about so i have built multiple digital small businesses so i understand this model really well so a lot of pain points are there right one is that literally getting your website created right you will struggle even getting your website created it's a lot of pain second is that you have to get payment integration done you have to do that then you have to market the website right i mean just because you have created a digital product it's not as if that people will start flocking in that you actually have started like a new website go and check it out that won't happen right so you need help with marketing so you need to market that also then there are like bunch of operations related challenges like that website is down what to do you have to ship your product when someone returns your product what do you do then how do you refund so many headaches are there in terms of running a small business also so shopify becomes like a one stop platform for you to solve this issue essentially the pitches sellers come buyers come they buy from each other that it's a marketplace that allows you to solve a bunch of pain points that you have and kick start your entrepreneurial journey so that is the simple concept of shopify now you would say that i accept why are you so bullish can you show me the chart of shopify how it has progressed i see that it was flat since 2015 it started 26 this that and now it's at 14.77 right so massive growth already you earlier said that you will not invest in amazon apple google all this but now you're saying that you will invest in shopify so why okay now here is the point right and this is a very important point for you to understand and this has to do with the industry trend right industry trend now there are certain reversible trends that have happened post the 2020 covid right for example people might use less technology right i mean it's not at the peak of the karuna virus probably people were doing like more room calls right now as we move to a physical world people will do more in-person meeting right i'm not saying that zoom will shrink right it's not as if that zoom will suddenly shut down nothing like that zoom has still gotten a lot of massive traction that will still continue but let's say 100 people were using zoom in 2020 2021 period probably 85 90 people will start using zoom when we go to the physical world right so this is the best case scenario now with shopify the situation is slightly different now my hypothesis is and this is my prognosis i can't be off like anyone else just a quick disclaimer there my hypothesis is that people who are looking to build small businesses right they will continue at the same rate same rate right or in fact this rate will even go up after a few years because what is happening in the world is that now we have started to exist on different spectrums right so different spectrum means and please hear me out here this is a very important point that previously what used to happen was that for example you would have observed that when your parents got a job at a bank now that bank would have continued with their employees for 30 35 40 years right till their entire career then same situation used to be there in the us also that hey if you get placed at like some major company like ford then people used to get done with their entire career at that code only now with so much stress in the corporate world so much headache so much so much technology being thrown at you you are not sure about your job anymore in the corporate world so everyone almost everyone is looking to start their small business right and guess what right which is the leader in terms of helping you start your small business it is by default shopify so this is a trend that will not go away that is what my assumption is that if you are holding this stock for like 10 15 20 years and if this entire industry of creating small businesses grow right then shopify or companies like shopify will grow with it now the next argument that you will make again something like shopify is that hey akshat you know what this sounds really interesting and probably you are making the right points but what's stopping companies like amazon google to start their own parallel businesses like shopify glad you asked and here is a very important paragraph that you can read from wikipedia and it said something like this right in september of 2015 amazon.com announced it will be closing its amazon web store service for merchants and had selected shopify as a preferred migration provider shopify's share jumped by 20 upon the news now it's not as if that companies like amazon have not tried fighting against something like shopify but usually the trend is that if one company for example there was a company in the us called as diapers.com right it became like so specialized niche in terms of selling diapers and baby related products that amazon had to come in and acquire that company altogether right same story might play out with shopify also going forward that if it becomes like really big amazon will either partner with it as it is doing now or some big company might buy shopify on my last video on u.s talks i explained you the concept of j curd right so j curve people who are just joining us let me just quickly explain that topic again so essentially j curve means that there is certain kind of adoption that happens in any technology right so there is like these periods like 20 20 that you know before that the company will have very limited users then some tectonic event will happen now the user base will improve right and this leads to something called as network effect for example the same network effect was exhibited where at facebook right so when facebook was at its peak lot of people were signing up for facebook account now if you are my friend and you are on facebook and i'm not on facebook and 10 of my friends are on facebook guess what i'm going to do i'll have to by default join facebook if i have to stay in that social circle so same situation happen that if you have a bunch of friends who are starting their small businesses everyone is doing via shopify so you by default if you're looking to start your own business you will have to go to shopify so i hope this point is clear and just as a final point here if you're looking to invest in some company which is trying to become shopify in india name that company i'll wait for like five seconds and i'll let you type out your answer please do type out your answer it allows me to see what you are understanding from my video so the question is that which company do you think in india is trying to become shopify so the right answer is paytm and more specifically paytm mall is trying to do something like that it is trying to get a lot of merchants lot of small merchants to sign up on paytm mall and they are trying to ramp up their merchant practice i made a separate case study on paytm you can take a look at it but the difference between shopify and paytm is there are two major differences so number one shopify is north america canada-based business and the nature of customers there are very different it's very acceptable to buy things online and they have been doing it for years that trend has picked up in india and it is going to continue to be that trend in india that's a part b of their culture is that they are slightly more entrepreneurial again please don't bring the nationalistic pride here i am just doing a complete rational analysis so therefore shopify has gained a lot of strength in terms of churning that engine right its moving very fast acquiring new customers etc etc second is so given the nature of the business in north america and the culture there what happens is that there is a lot of cool factor for shopify right they don't have to go and push people to become entrepreneurs so to say people want to become entrepreneur they are already learning it they are just looking for a great medium to just get their entrepreneurial journey started they land on shopify and become a client right so there is a lot of pull factor with shopify which paytm mall does not have right now can it do it i don't know i am not betting big on that as of now but this was a good interesting discussion between india and the us therefore i brought it up i hope you enjoyed that okay now let me show you the next stock that i am going to invest and it is called as part or ui path now some of you might not have heard of this company so let me take you through the wikipedia page there so essentially uipath is a global software company you will say okay software another software company but for rpa which is robotic process optimization now if you don't know the tech behind robotic process optimization it simply means that you are using robots or bots to automate a lot of work now if i have to give you an example so in banks there is a lot of front end and back end regular work right like counting cash and bunch of different things right now if you can automate this by using robots or using softwares that is where rpa comes into the picture robotic process optimization the world is increasingly moving towards this you might have heard that in finance that banks are getting more and more tech advanced why because they are using rpa that's a very important technology now you would say okay you know what technologies come and go who cares there is rpa there will be bts eta whatever like after two years what's stopping this from growing right so this is a great article for you to read and this is the forecast for the rpa industry now this is how the rpa market has grown from 2016 right to 2021 it's already growing its growing consistently right and the forecasts indicate that the market will grow at 32.8 percent calorie
32.8 name one industry that is growing at that massive pace now if this industry grows and if you are betting on a market leader in this industry the share prices will grow as well so let me quickly take you through the financials of ui path so here are the key financials and you will see that it got listed very recently right and we don't have a lot of historic data but you can see that it has been able to grow its revenue its gross profit has increased so look from right to left when you are looking at u.s stocks through this website so the revenues have gone up the profits have gone up right and net income is still in loss right that is the reason why you are seeing that the stock price was listed at approximately like 69 70 dollars and now it is trading below that okay now you would say that reaction this looks risky this seems like a very risky company not making profit can you explain why that is the case yes now you might very well understand that hey rpa is a type of an industry or any major tech especially if you are looking at cryptos if you are looking at rpa if you are looking at some other major technology there will be a lot of r d cost associated with it the better the r d the better will be the products better the products the more the usage of those products the more user acceptability will be there right and these kind of firms break even very quickly right so from that angle if you actually take a look at the best rpa firms right if you take a look at the best funded firms for rta you will read that currently ui path that is a good proxy for success as investors are looking for blah blah blah that ui pathway has raised approximately two billion dollars right the second company second well-funded company has not even raised 50 of the funds that ui pathway has raised now why are they raising so much money because they need to do the r d that is very important for them if you invest in this phase this company has the potential to become a monopoly that is what i am waiting on so i hope you like this discussion and let's move on to the final stock so the final stock in which i am investing is airbnb now you can take a look at history of airbnb right it was when it started it was trading at 144 dollars it's at 163 it had cut its week at 216 dollars so this according to me is one of the safest talks so to say why you just take a look at the financials of this right read from right to left now what are the revenues have the revenues going up yes right so in 2021 also despite the pandemic and everything and we know how airbnb operates it's essentially a platform i did not explain the business because you folks understand what airbnb is so airbnb essentially instead of booking a hotel you go and book someone's house so to say and it's a wonderful model i personally use airbnb all the time so i am a user of airbnb i have like the experience so i understand from that angle that you know what airbnb is a good stable company from that angle now the good part is that hey a pandemic-like situation has not hurt of course it has hurt airbnb but it has not literally demolished a business like airbnb there are certain businesses in india for example pvr the stock prices have crashed a lot for that but for airbnb that has not happened yet right and if you actually take a look at the revenues the revenues for airbnb has actually gone up right the gross profits have gone up if you compare it to 2019 levels the gross profit is up and traveling has not even started yet right it hasn't come to its full boom right so the moment travelling is up i am quite confident this stock price which is trading at 163 it will definitely cut its previous high which is 216 to 17 so there is a good amount of money to be made in this talk even from a swing trading perspective so i hope you enjoyed this discussion now in summary i will say a few quick points before i close out the video very important for you to listen to this so the first key point that i am personally investing in the u.s stocks from diversification point of view because my portfolio is big you can definitely take a look you can invest even if your portfolio is small you can invest that's not a problem number two my goal of investing in the us is that i am looking to invest in companies that can become monopolies right so therefore i am making investments from that angle that is two third point if you watch video one and video two in combination you will realize that i am not investing in flying stocks i personally believe that there has been a lot of run-up that has happened due to the liquidity driven rally please watch my videos you will understand that point more i have given some finance theorem here but i hope you understand the point that i am not investing in bank stocks because of the liquidity driven rally and final in closing if you are debating between which market should i invest u.s or
europe or india all this please don't stress too much about it the goal of investment is always to invest in good companies that is what you should be doing that is what even i am doing invest with a certain goal in mind for example if i am investing in india what am i trying to do i am trying to generate growth from midi cap small cap stocks and if good large cap stocks are available at decent prices i'll go and buy them right this is my strategy i'm not saying that you should also follow this follow your own strategy i have invested in large cap stocks already so whatever new buying i am doing i'm mostly doing it in small cap mid cap in india why why please talk about the answer the answer is that we are going to witness a bull gun or we probably are in a bull run in india that is my assumption so small cap and mid cap good companies will skyrocket in the next 10 years in india so that is the assumption similarly if i am going to the us what is my goal my goal is that hey pick up companies in the us that can become global monopolies therefore i have picked a company in crypto like this then i have picked a company in traveling which is airbnb excellent tech company can become a monopoly in that space i have picked shopify which helps small businesses thrive market leader in its space finally i have picked ui path new technology risky yes but if this technology kicks in right this stock will grow 10x right so that is the intent with which i am doing investing i hope you learned some key things from this video do let me know in the comment section do give it a thumbs up helps a lot with the youtube algorithm and i will see you the next time you
2021-09-14 00:26
