The #1 tech opportunity for 2021
Dear fellow investors,
I have received a lot of questions lately about my 5G thematic sub-portfolio so I decided to write a complete summary of the 5G opportunity I see in 2021 and beyond.
⌛ ᴡʜʏ ɴᴏᴡ?
As you know, Apple unveiled in October the iPhone 12 series, the first iPhones to support 5G connectivity. All new iPhones support 5G mobile broadband networks both in mmWave and Sub-5GHz spectrum which are the two types of 5G. The implications of this announcement - a clear inflection point in the innovation curve- are simply massive. This launch triggered the beginning of “phase 2” of the national US rollout and all competitors are forced now to play the catch up game. As 5G capability continues to roll out around the world, it will be an important part of the development of our digital transformation. This competitive battle is expected to unlock an estimated 60x growth before the end of 2023 and ultimately a $13.2 trillion boost to global sales activity plus an estimated 22.3 million new jobs!
🚀 ᴛʜᴇ ᴘᴏʀᴛғᴏʟɪᴏ ᴅɴᴀ Although the 5G concept sounds simple (faster connections and more data), if you dig a little deeper, it gets obvious that there's much more. A lot of participants in the value chain of 5G connectivity and opportunities coming from different angles. Operators, towers, software, hardware, chips, cloud & edge computing, content delivery, cybersecurity, fintech, healthcare, automobiles, IoT, AI, AR & VR, you name it! I started positioning my portfolio to start capitalizing this opportunity back in August and as of today it consists of 28 stock picks which I continue to enrich with new additions. By copying me, you ensure that your portfolio is exposed to capture the highest upside of this potential mega-trend (before 5G reaches a fraction of its projected impact) and the bigger picture of the digital transformation already sweeping the economy. Of course we can adjust the risk according to your risk tolerance by copying either the entire portfolio as a whole (more diversified, less risk), or only the stocks I will mark for you as the 5G sub-portfolio filtered out from the rest (laser focused to the 5G opportunity with higher returns expectation and risk). Just drop me a message or chat.
📈 sᴏ ᴍᴀɴʏ sᴛᴏᴄᴋs? Let’s face facts: if you are looking for a stock portfolio that will never go down, well… it doesn’t exist! I don’t seek to avoid all losses, but to maximize the opportunity. I expect 20% of the selected stocks to drive the 80% of the returns (the pareto principle applies here). Some are likely to fail. I don’t want to accidentally own only the losers. I want to ensure that I will capture these few long-term winners that will make up for all the failures and provide our wonderful gains as well, so the goal is to end-up with up to around 40 stocks over the next couple of years. 💡 ʙᴏᴛᴛᴏᴍ ʟɪɴᴇ I am highly convinced that we will witness years of rapid growth ahead and in 5 years from now we ‘ll be thankful we took the game-changing decision early, before the market recognized the full scope of the opportunity, from healthcare to an explosion of digital payments, to plays on the creation of data. The portfolio is already gaining momentum (up 31.2% since inception vs 14.6% of S&P500) and the best is yet to come!
🔝 2020 ᴘᴇʀғᴏʀᴍᴇʀs
Unity Software Inc. +63%
Square, Inc. +58%
🎉 That's all for 2020 folks!! 🎉 Let me wish you safe and enjoyable holidays! For sure it's different this year, but there are always reasons to wait for 2021 with optimism. Thank you for reading and happy new year full of health for you and your families!!!