Jun 13, 2024
Stock Investing Info from Earnings Hub w/ Hamid Shojaee
AZ TRT S05 EP23 (238) 6-9-2024
What We Learned This Week:
- Earnings Hub is a platform where you can find all the information on a company, when their earnings are coming out, & quarterly calls
- Earnings info for Public Co’s is often hard to find, and the income for stocks is crucial to the price
- Hamid is a long term investor like Buffet, more of buy and hold of good stocks, only owns 8 stocks
- Concentration Builds Wealth – Diversification Preserves it.
- Looking for companies that can grow 10x over the next few years, and this is hard with massive companies worth $ trillions like Apple or Microsoft
Guests: Hamid Shojaee
Hamid talks all thing AZ tech, Startups and what the world of an Angel Investor really looks like. His 2 decades + of experience is laid out, from starting and running software companies, plus exited the industry to now an Angel Investor mentoring the next generation of Startups.
Hamid (Founder of Axosoft and Pure Chat) has always had a passion in helping Arizona's up-and-coming tech talent. Since 2010, Hamid has been involved with various AZ tech initiatives, including bringing tech founder and CEOs together, investing in startups and helping push the #YesPHX community forward.
Axosoft – software tools for software development
PureChat – live chat software for websites
Hamid is a 20 year + software veteran who’s built four different multi-million dollar SaaS products in the last twenty years. He recently sold two software companies, Axosoft and Pure Chat, and has been advising and investing in Arizona-based startups for nearly a decade. He recently announced he’ll be investing $10 million in promising Arizona tech startups. Hamid is also host of the AZ Tech Podcast, where he interviews Arizona’s most successful founders, investors and doers.
What is Savvy Trader?
Create
Create a virtual portfolio of your stocks and crypto. Buy or sell your investments at any time to keep your portfolio up to date.
Share
Share your portfolio for free, or set a price, for your followers to get access to your portfolio and notified about your trades.
Notify
Notify your subscribers when you make a trade. Savvy Trader will send a text or email to everyone subscribed to your portfolio.
Savvy Trader is on a mission to make investment information more accessible.
Learning about stocks and crypto can be intimidating and overwhelming with incredibly high levels of noise and very little signal.
Savvy Trader helps solve this problem in two ways:
- Create and trade stocks and crypto in a safe virtual portfolio environment. The Savvy Trader virtual portfolios work a lot like a real brokerage account, except the trades are not real, allowing users to experiment and learn.
- Portfolio Creators can also share their virtual portfolios. A great way to learn about stocks and crypto is to see the virtual portfolios of others, see the actual performance of those portfolios as if they were real, and learn about the reasons behind the creators decisions for buying or selling each holding.
So go ahead, create a virtual portfolio and share it with the world.
Speaking of, I have a Savvy Trader virtual portfolio myself. Truth be told, I wanted to create Savvy Trader for myself as an easy way for me to consolidate my holdings in multiple accounts into a single virtual portfolio that represents my actual investments, and I wanted an easy way to share my portfolio details with friends and family. You can subscribe to my portfolio below - it's free!
Notes:
Savvy trader a website created by Hamid for portfolio sharing. You can see what stocks other people are buying. You can also create custom portfolio as well as build an audience. They pay creators $25 a month.
Under the Savvy Trader brand, they created Earnings Hub, which gives the quarterly earnings reports of Companies and their stocks. You can get a summary of the quarterly calls, analyst expectations, analyst analysis, the actual earnings, and the calendar on when the earnings come out.
Hamid is a long-term investor who looks for growth, earnings, and earnings validation. The old mantra of, trust but verify. He is definitely a fundamental investor like Buffet, who looks at the numbers of the company. Also believes in companies who make investments in R&D. Looking for great companies with a growing Market Cap.
Part 1
Seg 1
Public companies release earnings on a quarterly basis. Then the CEO has to conduct a call with analyst where they answer questions. This is the only public information available. It’s a chance each quarter to see what’s really going on with the company. Earnings information is tough to find, and you have to search for it in multiple places.
They created Earnings Hub where the information is all in one place. Can see the calendar of who’s reporting earnings and when. You also have access to past quarterly calls and a summary of the call. This way you can see the information the public companies are required to file on earnings in the status of the company.
Hamid is also an angel investor where you invest in startups Founders. Private investor with no guarantees. The way they typically operate, is they push out financial and sales updates monthly or quarterly. Most startups fail, so Hamid understands anyone he invests in, could lose the money. He is basically a hands off investor.
Earnings Hub is set up where traffic on the site will spike when big companies like a Tesla or Amazon are reporting. They also just launched a feature where you can listen to the earnings call live as well as do live chat with other members.
Cost for Earnings Hub is $100 a year. Right now they have an intro offer where it’s just $1 - one dollar.
Seg 2
They created a joke feature with Earnings Hub logo. Currently the A in the logo is a pyramid. When a stock is down, the logo will change to a 💩.
Real estate analogy - you buy the best house in the block, not all of them. You want to have a small portfolio of a few stocks with concentrated investing vs investing in the whole S&P index of 500 stocks.
Concentrated investors have a small nest which they watch carefully, as opposed to buying an index, and you can’t really focus on any one stock. Buffett quote - “concentration builds wealth. Diversification preserves wealth.’
Hamid owns 7 to 8 stocks. Those stocks are: Robin Hood, Meta, Rivian, Tesla, Netflix Rocket Lab, and some Bitcoin. You never know what’s going to happen with the stock, even good companies have bad days and bad years.
An example - Meta-Facebook peaked in 2021. Stock price was at $400 and the company had a market cap of $1.2 trillion. Then it crashed, going into 2022, the stock lost over 50% of its value and was down to $180 and the market cap was around $600 billion. Now in 2024, the stock is back up over $400 or even $500 per share and it has the highest market cap it’s ever had. The CEO Mark Zuckerberg invested in AI, made improvements to the efficiency of the company, and even cut 25% of the staff.
The old Buffet mantra, that you invest in managers who run good companies that have an economic moat with advantages to keep the competition away. This defines Facebook. There was a myth that Facebook was losing market share to TikTok. This turned out to be false and it came roaring back.
Seg 3
The ups and the downs of being a long-term investor using Amazon as an example.
If you had invested an Amazon in 1999, the logic goes, you would be done as an investor as the stock has gone up tenfold. The catch to that is, if you started in 1999. You had to hold the Amazon stock thru the dot.com crash of 2000 where it lost 80% of its value. Stock was worth $50 and 2000 and now worth $20K, 25 years later.
Uber it had its IPO the stock took off then the stock crashed. They got a new CEO in 2017 and since then over a 5+ year, the stock has slowly gone up.
Stocks like Robin Hood and GameStop have had big rises and big crashes between 2022 and 2023. Robin Hood, everybody was down on the stock in 2022 and you could buy the stock and the company for literally less than the cash they had on hand.
Robin Hood has matured. The company is very efficient and has a good customer base. They have expanded into the credit card business with 3% cash-back.
Invest in companies that their profits grow10X, so their stock price is up 10X over 10 years. He believes Robin Hood with the market cap of $17 billion has this potential.
Currently, they are grabbing customers from competitors like Schwab and Ameritrade using their credit card and account cash backs.
Seg 4
Another company Hamid likes is called Rocket Lab. Stock is $4 and they have a Market Cap of $2 billion vs a competitor like SpaceX valued at $180 billion. Just like SpaceX, Rocket Lab will be putting satellites into orbit.
Over speculation on a stock, and making a problem more than it is, can hurt a stock price. This can create opportunities, if it’s a good company, can withstand the short term problems. Investors need to see through those problems, and see how serious it is. What will be the short term cost to the company.
You want to buy good companies, at a great price. Stocks in 2022 at a great price, lots of opportunities. In 2024, stock price is high. It’s now just a good price even though the company still good.
A good investor can take advantage of short term volatility. An example of this. is Tesla. That has both benefited, and then sometimes been hurt by volatility. The story behind Tesla sometimes is a growth story based around EV cars, and the mystique of its CEO Elon Musk.
On the downside, when he does some controversy on Twitter, it can hurt the stock. 2023 into 2024, Tesla is facing some issues with slowing growth. Hamid believes that the story of Tesla is actually helping to prop up the stock.
Elon Musk has diversified through the years, not only is their Tesla, now owns Twitter, he owns SpaceX, and has moved into NeuroLink.
Savvy trader, you can share your portfolio. Anyone who joins can see her needs portfolio. Once you make a change on a stock, it is shared in real time.
Reference Show:
Create Your Investing Profile & Share It on Savvy Trader w/ Hamid Shojaee
BRT S03 EP58 (157) 11-20-2022
What We Learned This Week
- Savvy Trader allows you to share your portfolio
- Investing Track Record - see how people actually invest & their results
- Why Software is Such a Good Business Model, Build 1x, sell multiple X
- VCs want to see Traction in Startups
- Cost of Customer Acquisition (CAC) & Long term Value of a Custer (LTV) are critical in scaling a startup long term, how much does it cost to get a customer, and how long do you keep them
Full Show: HERE
Tech
Topic:
https://brt-show.libsyn.com/category/Tech-Startup-VC-Cybersecurity-Energy-Science
Best of Tech:
https://brt-show.libsyn.com/size/5/?search=best+of+tech
Investing Topic:
https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
Thanks for Listening.
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