This installment of The Matt Allen Letter is free for everyone. If you would like to read about stock analysis, stock market analysis, and much more.
Tomorrow (Sept 29th) is my birthday, and I appreciate all the people who have reached out to wish me a happy birthday. Each birthday, I like to reflect on the last year along with the last couple of years plus the next ten years.
Make sure you read my thoughts on the years 2000-2022 in the investing world below, but I would like to give a few personal thoughts first.
I am incredibly fortunate to have two great parents who both mean the world to me. Along with family and friends that are all very special to me, and who all have special places in my heart.
I truly believe that two of the best days in a persons life are the day that we are born and the day we discover why. I believe an individual searches much of their life for their why. However, I believe a person can discover this at any age, and they should never rush to find their why but always be actively searching for it.
Society puts so much pressure on us to conform to the societal norms that were established by some random person that sometimes we sacrifice our happiness to comply with these norms. We are only on this earth for a short period of time, and I firmly believe that everyone should do or be with who/whatever makes you happy.
If you want to give me a birthday present than you can do 1 of 2 things:
Number 1. Whatever problem you are worrying about today take a deep breath, smile, and remember that life is to short to be anything but happy.
Number 2. Call or text someone who is either an old friend or had a special impact on you that you haven’t talked to in a long time to just check in on them. (This could be an old friend, a family member, a mentor, a mentee, an old boss, an old employee and ect…) I believe that sometimes we get so caught up in the future that we forget about the great people in our past.
You will fail. In fact, this past year I have failed multiple multiple times. However, I will keep fighting each day.
Thoughts on Investing between the year 2000-2022:
The number one thing that most investors forget is that time, patience, and compounding are three of your best friends in the long term. We have had a WILD 20 years, but if you would have held your positions since 2000, you would be up a staggering 431%. If you would have bought the dips, you would be up around double that.
Since the start of the 21st century, we have had these horrible events in USA:
The 2000 Dot Com Bubble that led to a stock market crash.
The attacks on 9/11
2 American Wars
Hurricane Katrina along with multiple other hurricanes
The 2008 Global Financial Crisis
The Boston Marathon Bombings
Lone Wolf Terrorist Attacks around the world
CyberAttacks led by Nation States and Terror Groups
The Russian Invasion of Ukraine
We have faced all of that since 2000, but look at what the stock market has done. Betting on the stock market in the long run is betting on America.
Investing in technology is my absolute favorite thing to do. . I want to be remembered with investing in tech companies, the same way Warren Buffett is remembered for his investing in insurance companies.
One thing that we forget about is that every single day the advancement of technology becomes faster and faster meaning the technology in our life now will become obsolete very soon. Think about ten years ago and the technology that we used then compared to the technology that we use today.
I don’t want to bore you, but I am a big believer in Wright’s Law and a Top Down Approach to Tech investing.
With that being said, I believe that in the grand scheme of history, we are at the very beginning of the largest technology boom ever, and we should invest accordingly.
Since the start of the 21st century, here are the key events that have shaped technology:
Apple launches the ipod- 2001
Blockbuster laughs Netflix out of the room and calls them a non threat- 2001
Google launches Adwords- 2001
PayPal sells to Ebay- 2002
Microsoft launches Microsoft Office- 2003
“The” Facebook is founded- 2004
YouTube is founded- 2005
Amazon launches prime- 2005
Jack Dorsey Launches Twitter- 2006
Steve Jobs introduces the iphone- 2007
AirBnB hosts people for a conference- 2008
Elon Musk becomes CEO of Tesla- 2008
Uber launches with little users- 2009
Satoshi Nakotamo releases a White Paper on Bitcoin- 2009
Instagram is founded- 2010
Spotify disrupts the music industry with launch of app- 2011
Snapchat is launched- 2011
Venmo, Peleton are launched- 2012
Coinbase is launched as a crypto exchange- 2012
Tik Tok is launched- 2016
The first private citizens go into space- 2021
The Metaverse is a household name- 2022
You will notice a few things about all these events:
1. I listed a bunch of events but left off tons of events.
2. When you are investing in new technology, you have to ALWAYS think 10 years in the future. Look at some of those names especially in the early years, they took FOREVER to catch on.
3. I notice that the timeline of new technology going mainstream is getting faster and faster. However, I do believe that there are tons of companies that will be added to the list because of their innovation in the year 2031 like vr/ar, autonomous, fintech, and multiple other sectors.
It is so important to think about the year 2031 when investing in a tech company in the year 2022.
I hope everyone has a great rest of the week!
If you have any questions, feedback, or just wanna say hey, email me at firstname.lastname@example.org
Stay Hungry, Stay Long,