It has been a spectacular week of sun and fun in San Diego. It is hard to explain the peace and joy I get from living on Coronado. I am trying to find a rhythm to the slower pace of life.
Here is my current blogging view at 8 pm on Coronado…
Max has been working endless hours it seems at a local restaurant and Rachel is headed off to Easter Island for a few weeks so it is very different for Ellen and I having the kids around but not needing much of anything from us.
I have long been bullish on San Diego but am currently (and finally) being blown away by the growth in my favorite part of town called Little Italy.
About five years ago I took an office in Little Italy at a co-working space I personally invested in called Deskhub. The workspace is now full and thriving.
Little Italy is five minutes from the San Diego airport, on the ocean, and a stone throw from the I5 (which in no light traffic is 2.5 hours from Los Angeles).
I am not wired to invest or speculate in real estate but as I invested my working time in Little, I contemplated dropping everything to speculate on the neighborhood. It would have been a fantastic investment. It will continue to be a great investment for people.
Between UberX and Bird, Little Italy has it’s only issue (parking) pretty much solved.
I am surprised that Facebook and Google have not set up shop here for their best people as a lifestyle perk. Once they do, today’s prices will look cheap.
If you are reading this and have $5-50 million burning a hole in your pocket and need a partner with ugly feet and a bad hairline, dial me up.
It’s back to work not that Independence Day is behind us. I can’t believe it is already July and half of 2018 is gone.
Back to work for me means more reading and networking to find the next big winners in startups and the stock market.
I read this great piece from Eric Feng of Kleiner Perkins titled ‘Who Has The Best Business Model‘. It is definitely something venture capitalists like to discuss. Have a read. I agree with him that Google and Facebook should make a run at Shopify to diversify out of the advertising business. I like how he ends it:
As the fight continues for control of our phones, our homes, our cars, our wallets, our food, our health, our time, a key weapon on the battlefield will be what business model they wield. And I believe that shared-value transactions powered by commerce will be the most lethal weapon of choice in determining whose business reputation will remain intact.
In the stock market, the best business model does not mean the best stocks or returns.
Elon Musk made a critical mistake today by calling Tesla a car Company. The stock fell about 10 percent intraday on the news that they too might be Ford or GM one day.
I am not sure people will EVER appreciate the power and subtle genius of Twitter which is why I have been so passionate over the years about the company, the stock and of course Stocktwits.
Elon Musk is doing exactly what I suspected/speculated CEO’s of public companies would be doing on Twitter back in 2008. The edgy tightrope he is walking re SEC rules is intense as he battles short sellers and promotes Tesla daily.
Today, he was trolled by Steven Armstrong, the CEO of Ford Europe with this beauty:
We also walk through some pet stocks holding up well, the solar stocks, some biotech ideas and the carnage in Chinese names.
As Ivanhoff sums up…’The market environment has certainly changed in the past couple of weeks. We went from a market, where almost all breakout led to a quick 10-30% move to a market with many failed breakouts. Many Chinese Internet stocks are already down 10-20% from their recent highs and trading near levels of potential support. It will be interesting to see if dip buyers start to step in.’
As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.
I grew up in the era of magazines. You got your stock tips monthly in Fortune or Smart Money (they were already 2 months old by print) or your golf instruction from Golf Magazine and Golf Digest.
Max’s friend (and mine) Jackson Moss shot this video of my golf swing the other day which I posted to Twitter. The responses were funny (scroll away) as to be expected, but I also got some amazing instructional tips.
My partner Tom saw it and sent me this via text re my collapsing left arm:
I have not really enjoyed golf the last few years. I have been too busy to play much and away from my home course in San Diego.
I decided to take some of the feedback from the video to the range today and the results were really good. I wish I had tools like this when I was learning the game and had all the free time in the world.
In March, my friends at ‘Modern Trader’ did a longer interview with me about my reasons I think Nike would continue to trend. I don’t have the link but you can put on some glasses and take a read here:
I have no real idea why I am so right ‘tonight’ other than it seems most people and machines were wrong going into earnings.
I have no idea which number the analysts and machines will glob onto each quarter so I refuse to play that game. I stand as far away from the line of scrimmage as I can with great companies. Nike, in my opinion, continues to be misunderstood by Wall Street. They offer the millennial generation fashion and style on a continuous basis in an era of technology sameness.
"Think of your beliefs like clothing, not tattoos. You want to be able to easily change and adapt them for you, but not have them become a permanent part of who you are." ~@dollarsanddatahttps://t.co/kk49HFn3WQ
I can hear all the third quarter conference call excuses now…’The unexpected strength in the US dollar threw off our international sales growth, the trade war is hurting our budgeting and costs, and people are not out spending because they are worried about the elections in November’.
If this is just a pause in the markets that refresh…fantastic. I own some great stocks and can find some new ones in a stronger tape.
If not… trends ending beget new trends beginning. That is the joy of being able to participate in markets. Your job and mine is to stay in the game.
PS – One big uptrend has emerged through all the nastiness, noise and rhetoric of tariffs and MAGA is oil . It’s now up 170 percent since February 2016. I guess we should not be surprised.
I caught up with Morgan Housel who is consistently the best financial strategy writer and thinker in my network. I told him he was way too hot and said I was gunning to bring him down a notch. He laughed it off, but during a panel he fell right into my trap…
In true Morgan style he wrote this piece today which is just awesome titled ‘Betting on Things That Never Change‘. Read it and than remind yourself to read it every month. It will make you money.
I also had the great pleasure of meeting Ben Hunt. Ben started the most excellent ‘Epsilon Theory‘ blog. I have learned so much about investing from his essays. In person, he is even more awesome. We spent and hour talking about investing. I was very proud that I did not make one ‘Mike Hunt’ joke. I set the bar very low for myself in situations like this.
Today, Max and I got up at 4 am to drive the 7 hours from San Diego to Tuscon for Max’s University of Arizona orientation.
I guess rising interest rates, trade wars and inflation are not fantastic for the markets.
I will get right to this week’s episode of Momentum Monday. Here is the link, or watch below:
As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in oand will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.