What You Can Learn From 3 America 2.0 Investors
America 1.0 investors, like Warren Buffett, are looking in the rearview mirror.
They don’t see that the world is being remade with America 2.0 — completely transforming the economy we know and growing new branches for future success.
So what are America 2.0 investors watching? Your mega trends!
- Tesla and autonomous tech.
- Batteries and new energy.
- Bitcoin and blockchain.
Our goal is to generate BIG money over time. And to do that, we have to look ahead. You’re not going to find it looking to the past with stocks like Apple or Campbell Soup.
You have to look at the disruptors.
Check out today’s video to see how you and three incredible America 2.0 investors are doing this today:
Hey everyone. It’s Paul with this week’s video. Today I am going to talk about three great investors of our time. I was thinking that the financial media spends a great deal of time talking about people like Warren Buffett and Charlie Munger.
From our perspective, from a future perspective, and from an America 2.0 perspective, truthfully what Charlie Munger and Warren Buffett are doing has very little relevance. By the time they come to the kinds of stocks we want to own, we probably want to sell them.
That’s no disrespect to them. In their time they were the growth investors you wanted to follow. However, in today’s world, I would tell you someone like Warren Buffett and someone pursuing a value mentality are largely looking in the rearview mirror at companies that are past their prime.
I keep telling you they represent America 1.0. The destination is certain, which is zero. It’s just a matter of when they are getting there. The world is being remade. There is a Fourth Industrial Revolution that we have called America 2.0 that is completely remaking every part of our economy.
It’s every sector, every industry. Then it’s growing new parts of our economy. So who would you look to today in terms of looking at strategy, the stocks they are investing in, and how they are thinking today? Today I want to tell you about three brilliant, genius-level investors who you can follow.
Look at their ideas. Look at their stock picks. Google them. Follow what they are saying. Then I will tell you about some commonalities in the way they think that is similar to the way we look at the world. You can imagine what they are. Number one, they are all looking forward.
In other words, all the gains they expect are going to happen one, three, five, seven years from now. They all believe we are in an incredibly disruptive time where you want to be investing in the companies that are innovating and disruptifying.
They are taking what is possible as a result of technology and innovation and going for it and shifting the paradigm from where it is to where the world is going to be. That extends to everything from crypto, to fintech, to space, to autonomy and mobility.
These investors cover the entire gamut, as do we. Nonetheless, we are going to focus on them. I will tell you, if you want something similar, check into Profits Unlimited. This is our focus as well — Fourth Industrial Revolution, America 2.0, growth stocks with an eye looking out a minimum of one to three years.
Generally speaking, if you can, you want to look longer. The great companies keep going. They keep going and growing. Let’s get to the subject of today’s video: Three brilliant, genius growth investors to follow.
Cathie Wood Of ARK Invest
Genius number one is someone who you are probably a little familiar with already: Cathie Wood of ARK Invest. You can look at Cathie Wood’s ETF with the ticker ARKK. This one is her flagship ETF, like the way Profits Unlimited is my flagship newsletter.
ARKK is the ARK Innovation ETF. It’s her flagship ETF. I will put up a graph with her 20 top holdings.
Those of you who are in Profits Unlimited will see many holdings we have in common. I want to talk about what really made Cathie Wood. She made a large bet when the rest of the world was saying it was a terrible bet.
That bet was Tesla. Cathie was a big bull on Tesla. She put out these insane, seemingly ridiculous price targets of $2,000 and $4,000. People told her she was crazy. People said all kinds of mean things about her. Go on Twitter, they still do that.
However, as I like to say, the last laugh belongs to the person who was right. Cathie Wood has been right about Tesla. If you look at ARK Invest, you will see it now represents 10% of ARKK. That’s obviously a result of the amount she put in to begin with and then as a result of the insane appreciation it has seen over the last year or so.
Tesla has skyrocketed to her price target and then beyond. The thing is, she is still bullish about Tesla, as are we. Primarily for the same reasons. She sees Tesla as being a class, a world, a planet apart in terms of making electric vehicles (EV) and then in terms of autonomy.
In other words, robotaxis or autonomous transportation. Everyone else is using simulated miles. Tesla has actual cars on the road that are recording actual data. They also have an approach to autonomy and self driving that needs no maps. It’s simply going to interpret the situation and make a decision.
It’s a more difficult way, but it’s going to impossible for everyone else to copy. They are now years and years in the lead. Right now it may seem like everyone else can catch up, but it’s becoming clear to folks trying to make electric vehicles today that Tesla is seven to 10 years ahead in terms of making batteries.
They have five to seven years ahead in terms of thinking through making an electric vehicle versus an internal combustion engine. You need to reduce the weight so the battery can have maximum range. You also need to try to capture efficiencies in terms of charging the battery.
Then, in terms of thinking through all that and the integration necessary to accomplish that, they are years ahead. A couple of years ago it may have seemed possible that Volkswagen, GM and Ford could catch up. They aren’t catching up, folks. They are done for.
They represent America 1.0. They are going to first struggle and then die slowly off. That’s not wishing anybody ill, that’s just on the basis of looking at what they are doing and seeing how far ahead Tesla is just in terms of its transportation business.
Then there’s its solar business. The solar roofs, the Powerwalls. I just personally got a Powerwall. This product is amazing. It needs no manual. Someone comes to install it and then you go to your app and you can control it. No complicated setup.
The moment the power goes off it takes over. I can gush and gush about Tesla, but Cathie Wood deserves the credit. Years and years ago when Tesla was being heavily shorted and people were telling you it was going to zero, it was bankrupt, it didn’t deserve its market capitalization, she stuck it out.
She made her name on it. I believe she is right and going to continue to be right. I also believe a lot of the stocks you see in ARKK like Teladoc and Zoom, today, many people are skeptical about. However, we shall see who laughs last. I believe Cathie Wood is going to be right.
All the people today who scoff at her will be wrong once again. So that’s my genius number one. Brilliant investor I believe you should follow, track what she is saying, track what she is doing, look at what companies she is investing in, look at the technologies and how they are looking at them to give you an idea as to what kinds of companies and stocks to invest in.
Peter Thiel Co-Founder of PayPal
The second person I want to mention as being a complete genius is Peter Thiel. Peter Thiel is not so well known among investors. However, if you look him up you will see he was one of the co-founders of PayPal along with Elon Musk.
He took that fortune and created a firm that is a hedge fund called The Founders Fund. I’ll put up this partial list of his holdings.
There’s far more than I could ever put up. However, you can go on Google and google Peter Thiel. You will find lots of listings of his holdings.
We are going to talk about what made Peter Thiel. If you have seen the movie The Social Network there is a brief scene where Peter Thiel gives Mark Zuckerberg money as investor number one in Facebook. I believe it was $650,000 to buy a percentage of Facebook.
I forget the percentage, but it was a large percentage. Then Peter Thiel continued to invest in Facebook as it continued to grow. That made Peter Thiel. That investment today is worth billions of dollars. However, Peter has also made massive other investments, including Palantir and Airbnb.
If you think about three or five years ago, no one had heard of Palantir. The idea of using artificial intelligence (AI) was largely something that was an idea that was just in people’s heads. However, Peter and the founder of Palantir decided to make this technology real.
They created a service that is valuable to companies and governments. It’s going to be the leader of the AI sector. I believe it’s going to be pervasive. It’s no different than electricity today where it’s unimaginable to think about a world without electricity.
Eventually, the idea that a device or our homes are not powered by AI is going to be unthinkable. You will have companies like Palantir that will be leading that revolution. That’s one of the companies Peter Thiel co-founded and has been a big investor in.
Palantir has recently come public. There’s not big gains necessarily to report from that, but understand that he was in as a founder. Palantir is now a multi-billion-dollar company. He has gains in the billions of dollars as a result of it. That’s my genius number two, Peter Thiel.
He made his original money through PayPal, invested in Facebook, became a billionaire and has founded Palantir and a number of other companies. He is an investor in a number of America 2.0 companies. I have studied Peter Thiel quite a bit.
I have taken one thing from him that is important. We, as investors, focus a lot on today. A lot of you focus on this quarter’s earnings and see if it beat the earnings. If you listen to Peter or read about him, he says the big value in these companies is in the out years. They come in year two, year three.
That’s where his focus is. That’s where our focus is. That’s what I try to remind you in periods like this. A very short focus means you are going to miss out on the big gains. I understand some people who might be older or want short-term gains will say,
“I don’t really care. I want these gains now.” The truth is, and I say this in many videos, our services are wrong for you. We, like Peter, Cathie and the third investor, we look out one, three, five, seven years. We are looking to make big money over time.
Sometimes it will generate gains like this [snaps fingers] and that is great. However, our goal is to try to generate big money over time rather than in a day, week, month or year. During periods like this I get a lot of email, comments on YouTube and tweets telling me about XYZ stock that’s not up.
Or people ask me about a stock that is down from where we put it in the portfolio. We can only say that at the growth rates we are expecting, because these are transformational companies that are looking to disrupt entire industries, the upside is massive.
However, it is going to unfold over time. During that time period there is no guarantee you will only have small dips in the price. Whether you look at Cathie Wood’s ARK Invest or any of Peter Thiel’s holdings, there have been huge ups and downs. Unless you are willing to ride it, you can never get the benefit of big gains.
To me, big gains are the reason why I invest. Big gains are what we pursue across our services. I believe their approach, which has generated billions of dollars for them and their investors is the right one.
Crypto World Tim Draper
Moving on to brilliant, genius investor number three: Tim Draper. Tim is probably the least well-known of the three I am mentioning. That’s because Tim has been in the crypto world. His most famous investment was in 2014 when he took investors’ money and his personal money and bought 30,000 Bitcoin (BTC) from the U.S. government.
These BTC had been confiscated from an illegal market. He bought them for $600. If you do the math on that you can tell it turned out to be an astonishing amount of money. Each BTC today is worth something around $30,000. It had a recent peak of $64,000 so its value was double.
As you know, I have a price target of $250,000 for BTC. You can imagine at that price this will be an extraordinary buy. Then if you look at one small sliver of Tim Draper’s holdings, these are blockchain investments.
You will see there is an extraordinary array of investments he’s made across cryptocurrencies, various blockchain companies — and you are just seeing a small number of them. You will see it says 42 holdings. You would have to scroll down the page. You can go to Draper Ventures on google and find the page.
It’s a mix of public companies and crypto you can buy on Coinbase and other exchanges. In other words, these are places where you can go and look for leads in terms of what are some of the smartest investors of our time that have gotten the last five years and 10 years correct and are getting the current period correct.
What are they doing? What are they thinking? What are they investing in? What sectors? What industries are they focused on? What is their thought process? Because the financial media is always distracting you with very short-term ideas.
Just a few weeks ago it was that we were going to have hyperinflation. Now today there’s no more growth. One day there’s going to be high-interest rates and the housing market is collapsing. The next day, everything is fine.
The financial media is a poor way to come up with an investment philosophy or a decision in terms of what you should buy and how you should continue to go about thinking about your stocks. These three investors — Cathie Wood, Peter Thiel and Tim Draper — their focus is like what we have.
We are future focused, America 2.0 focused, Fourth Industrial Revolution focused. Exclusively focused on that. You won’t find Coca-Cola, Berkshire Hathaway, Campbell’s Soup or these old companies in their portfolios. What you find instead are companies that are looking at the future.
They are going to disruptify the future. They are not just looking to compete with another company. They are looking to take over the entire industry the way Amazon took over the online retailing world, the way Facebook dominates social media, the way Netflix dominates media, and the way Google dominates search and navigation.
This is the way they look at the world. In my judgment, this is a moment of extraordinary opportunity. Here are some of the folks that are making those big investments and generating huge gains over time. That’s our focus as well for us in Profits Unlimited and across our services.
If you are interested in these kinds of investments, I read what these folks are doing. We invest sometimes alongside them. Sometimes there are smaller companies that they can’t get into that we can get into. If you are interested in that, the way to try us out is to try Profits Unlimited.
That’s the video for this week. A couple warnings. This is not financial advice. And I did say we are long-term and stuff is volatile. If you don’t like any of that, don’t follow us.
Don’t invest and expect instant results and then troll me on social media. I’ll have another video for you next week. Until then, this is Paul saying bye.
Editor, Profits Unlimited