Hey guys how's it going it's Andy from Magoo investing happy Monday it's crazy to think that
we are getting close to December tomorrow is going to be the last month of the year and so I’m going
to wrap up this year uh talking about some major changes that I’ve had to my investing portfolio
today's video I’m going to be breaking it down into three different parts the first part is I’m
going to talk about the two cheap stocks that I’ve added to my portfolio in the past month
and kind of explain why I’ve picked these two out of the like 20 plus stocks I’ve talked about in
the past month part number two of this video is I’m going to talk about what my overall stock
portfolio looks like going into December as I mentioned this is a huge change to my overall
portfolio considering one of my biggest positions in Sonos Stock (SONO Stock) which was around 50
of my overall portfolio got taken from me in the past month so I have some major changes there and
then finally I’m going to be talking about how my investing strategy is going to change going into
the last month of the year because I think we're going to have a really interesting end of the year
and I want to talk about some of the historical numbers that make me feel like something specific
is going to happen in the stock market and how I’m planning to take advantage of that
going into 2021 just a reminder that if there's any stocks that you'd like me to talk about in a
future video be sure to leave them in the comments section down below and I’ll get to them as soon as
I can before getting started I do have to say that I’m not a licensed financial advisor and
this is not financial advice anything you hear in this video is just me giving my own opinions
on the stock market and you need to do your own research before making any investment decisions
also if you've been enjoying these videos really appreciate it hit that like and subscribe button
also help my channel out a lot if this video gets a 75 likes I will shave off my mustache
so you guys don't have to keep commenting about it in the comments section down below
so as I mentioned I’ve had some huge changes my overall stock portfolio and that mainly came from
Sonos Stock (SONO Stock) being taken away from you I had an option position with
Sonos Stock (SONO Stock) that accounted for around 50 percent of my funds in my portfolio and in the
past month if you've been around this channel for a bit Sonos Stock (SONO Stock) skyrocketed
in price after having a fantastic earnings report that saw the stock go from $15 to $20
in just a couple days and since I had a covered call that was at the $15 mark I missed out on a
lot of additional profit and was forced to sell at the $15 strike price what that does mean is that I
had a lot of cash sitting on the side and so the majority of like the second half of November was
talking about cheap stocks to buy because I want to get some great deals going into 2021. when I
talk about cheap stocks I’m talking about stocks that I think of as being on a discount not just
price-wise it just so happens that both the stocks I did buy for my cheap stocks are relatively
cheap in price so the first stock I bought was around a week ago and that stock is going to be
general electric stock ticker symbol General Electric Stock (GE Stock) and so some people
have some mixed feelings when it comes to General Electric Stock (GE Stock). General Electric Stock
(GE Stock) was a stock that I really disliked at the beginning of this year but doing some
more research on it in the past couple months I’ve started to kind of change my tune about it
and so right now General Electric Stock (GE Stock) is trading for and twenty five cents and it's on
eight percent on the year this was a stock that has been in my mind pretty horizontal for a long
time but in 2020 it is bounced around a lot it bounced back from its lows of around six dollars
and it's done very well in the past couple months so instead of buying just straight shares
of General Electric Stock (GE Stock) I decided to use my wheel strategy which is something I’ve been
using and talking about in videos for the past couple weeks the beginning of the wheel strategy
means that you sell a put on the stock so what I did with General Electric Stock (GE Stock) trading
at 10 25 and down eight percent on the year I sold a put at the 10.50 strike price uh that expires in
18 days what this means that if in 18 days a stock is below 10 and 50 cents I will be forced to buy
100 shares at that given price this means that if the stock skyrockets and it's like 12 dollars
in 18 days I will not be forced to buy at that price and I will just be able to keep the premium
but if the stock does fall and it stays below that I’m going to be forced to buy no matter what price
it is right now the best case scenario is that in 18 days the stock is going to be at 10 49
and I get to buy the shares at 10.50 and since I was paid 45 cents a share for it I will be at
a profit considering my average price will be down at 10 and 5 cents so the beauty behind the
strategy is no matter what happens to the stock I’m going to be pretty much happy instead of just
buying straight shares I get to lower my average price if I do get assigned these hundred shares
and so since I am very long-term bullish on the stock I win no matter what in my opinion
it does kind of limit some of the upside potential if the stock does skyrocket but
I’m not betting on it to skyrocket anytime soon I think there's going to be a more long-term play
and so the reason I picked General Electric Stock (GE Stock) for this is because my
tune on General Electric Stock (GE Stock) has changed a lot in the past couple weeks General
Electric Stock (GE Stock) is one of these stocks that I call reopening stocks that'll do well when
the overall economy and things start to open up fully this is why I bought into stuff like
southwest airlines and planet fitness these are stocks that have been pretty beaten down in 2020
but they've done well pretty recently as we've had some very positive vaccine news and I think
of GE’s being a very similar thing because their most profitable part of their business comes from
aviation and so from their last earnings report their revenue from aviation dropped 39 percent
as 26% of the global fleet of planes are grounded and so you do get the benefit of
the reopening when it comes to General Electric Stock (GE Stock) but the main reason why I’ve
identified General Electric Stock (GE Stock) is being one of the stocks that I wanted to put my
money where my mouth was has to do with renewable energy this is something that I strongly believe
that renewable energy is going to be one of the most exciting industries to be a part of in the
next five 10 20 years and General Electric Stock (GE Stock) seems to be in a very good position to
take advantage of that 2020 was supposed to be a record year for wind turbine installations and as
I mentioned General Electric Stock (GE Stock) has already shown that they're in a very good spot to
take advantage of that even with the pandemic and some of these spending numbers decreasing
the number of installed uh wind turbines for 2020 was only six percent less than the expected so
even though there's been a kind of a stoppage when it comes to spending for a lot of different areas
only a six percent drop is better than I kind of expected they've already won a deal with
Lithuania to install 22 wind turbines and they will be providing operational services on those
locations for 25 years so we're starting to win some of these larger contracts this industry is
going to continue to expand in the next couple years uh from the numbers I found by 2024 the
total wind power installations are expected to rise by 54% compared to what we saw in 2019 so as
I mentioned this is more of a long-term position I don't think this is a stock that's going to
have one good earnings report and it's going to skyrocket because even before the pandemic
this was a stock that was sliding but I do really like the long-term potential of the stock based
off of the positives I’m seeing from the reopening process because their aviation which is their most
profitable business is expected to get back to somewhat normal in the next couple years
and then the long-term potential of the renewable energy just has me really excited
I think that General Electric Stock (GE Stock) is that a great deal because I would call it
cheap because it's at a significant discount compared to where it was a couple years ago
the company's had a lot of problems they've been cutting a lot of costs which is what I really
like to see with a struggling company and they've been selling off some of their businesses and I’m
a big fan of General Electric Stock (GE Stock) focusing on renewable energy because I think
this is an industry that's going to be backed by a lot of government I think this is an area that
governments are going to be willing to spend a lot of money to upgrade their energy in the upcoming
years so I’m very excited to see what General Electric Stock (GE Stock) can do with renewable
energies in addition to the reopening process so let me know what you guys think about general
electric ticker symbol General Electric Stock (GE Stock) in the comment section down below so
the next stock that I bought from the past month is going to be Zynga Stock (ZNGA Stock) ticker
symbol $ZNGA currently Zynga Stock (ZNGA Stock) is trading for eight dollars and 22 cents and it's up
34% on the year if you've been around this channel for a bit this is a stock that I held for probably
six months in the past year it was a stock that identified as being a pretty good deal and a
stock that I thought would do very well during the lockdown process and I was pretty right about that
but I did end up taking profits on it a couple months ago and based off of the last earns report
and some of the news that we've seen with the vaccine I thought this was a great deal to take
advantage of as I mentioned this was a stock that did very well during the lockdowns and pretty much
any of those stocks that did well when you have any of the vaccine news they kind of sell off
because a lot of the attractiveness to some of these stocks that are up significantly this year
is the fact that they'll do well if people are staying at home I believe
that Zynga Stock (ZNGA Stock) is going to do well pretty much no matter what and being able to buy
it at a discount beautiful similar to what I did with General Electric Stock (GE Stock) I
ended up selling a put on Zynga Stock (ZNGA Stock) and so it's at eight dollars and 22
cents and I sold it at the eight dollar strike price that expires in 24 days what that means is
if Zynga Stock (ZNGA Stock) on Christmas is below eight dollars I’m going to have to buy 100 shares
of the stock no matter how far it's fallen but in exchange I was paid 24 cents a share meaning that
this would be a three percent trade for me if the stock is above that price uh on expiration date
and it's a win-win just like I said with General Electric Stock (GE Stock) pretty much whichever
way it goes this is a stock instead of just buying straight shares I’m being paid three percent to
be a little bit more patient and I miss out on some of the upside potential if it skyrockets
but from what I’m seeing I think Zynga Stock (ZNGA Stock) is going to be a great long-term position
for me and I wanted to take advantage of some of the cash that I had sitting in my portfolio to buy
into Zynga Stock (ZNGA Stock) so Zynga Stock (ZNGA Stock) is a mobile games company that has done
very well in 2020 even with that I believe the stock is at a significant discount because of some
of the recent price movement and the fact that it hit 10 just a couple months ago it's a mix of the
stay-at-home stock selling off as I mentioned and some underwhelming earnings that I didn't
think were actually that bad and I think people were taking profits after an incredible 2020 that
the stock has seen so far so we saw a 46 increase in revenue year over year and their guidance for
uh revenue growth was only 41% for the next quarter which was lower than wall street kind of
expected but 41% for revenue growth I would take that any time so I believe this is a type of stock
that has kind of had unrealistic expectations put on them because they get categorized
into these stay-at-home stocks and since that sell-off 41 revenue growth for the next quarter
I will happily take that so I was able to buy it at a discount and so the most common price targets
that I’ve seen for Zynga Stock (ZNGA Stock) in the past couple weeks have been at the 13 to 14
range which is significantly higher than where we are right now at 8 and 22 cents so there's a lot
of upside potential and I see a lot of positives with Zynga Stock (ZNGA Stock) the company did have
a net loss of 122 million dollars but that was based off of a lot of acquisitions that they made
in the past year and the company is still net cash flow positive at 108 million dollars for the past
quarter and 300 million for the previous 12 months uh they've seen a 23 increase in their monthly
average users and that's the growth that makes me feel very confident for a long term position
it has lit off of their all-time highs but I think this is a stock that's going to do well
in the next year five years ten years so I love Zynga Stock (ZNGA Stock) and I was happy to buy
it at a discount all right so let's talk about how my portfolio looks for part two of this video
the first chart that I’m going to show kind of tracks how my percentage gain for my portfolio has
done to the s p 500 yes I could pick the Dow or the Nasdaq but I think the SP 500 gives a better
representation of the overall market so that's why I picked that so as you can see my portfolio
which is in blue I was up 6.7 percent in the past 30 days compared to the SP 500 being up 7%
and you might be wondering you underperformed compared to the overall market why wouldn't you
just buy into the overall market and just kind of take that seven percent gain and the reason I’m
very happy with how my portfolio did in the past month has to do with this so let's talk about what
my portfolio looks right now the main thing that I want to point out is that I was almost able to
outperform the market with 36% of my portfolio being in cash so I had a lot of money sitting on
the side and the stocks that I did own did very well and was enough to almost beat the overall
market so let's show how my portfolio has changed in the past couple months because I do still have
the pie charts from the past three months so in October I was only in five percent cash that's
when I ended my Zynga Stock (ZNGA Stock) position that resulted in me being in 22 cash going into
November and 40% of my account was being tied up in Sonos Stock (SONO Stock) as I mentioned a
lot has changed since that point so I want to put up the breakdown of what my portfolio looks like
currently cash is up at 36 percent and a couple weeks ago it was at 65 so I’ve reallocated a bunch
of that cash but I’m still sitting very heavy in cash going into the end of 2020 and so the rest of
my portfolio has remained pretty much stable I haven't done a lot to it a lot of the blue
chip stocks that I’ve had have remained stable and they've just been chugging along I like to
keep a decent amount of my portfolio in cash so I can sell options and take advantage of high iv
and that's kind of where my portfolio is sitting right now so let's finish off the video talking
about what my plan is for investing into the end of 2020 and going into 2021.
so 2020 has definitely been all over the place for the stock market we had uh the longest bull market
in history that was snapped based off of the stock market crash that we had back in march then we
had the shortest bear market in history and now we've been chugging along ever since that point
even with that crash the tech heavy Nasdaq is up 35 on the year which makes it as high
as we saw in 2019 and we haven't seen that good of a year since 2013 when the Nasdaq jumped 38
and I expect to see kind of what we saw at the end of 2018 at the end of 2020 and so for people
that weren't around 2018 the December months was a crazy time beginning of the month we had a lot
of the trade war stuff with china where a lot of the tech sold off then we saw some bounces back
Christmas day was like a five percent gain for the stock market followed by a five percent crash
the next day that was a really interesting time because that was the first time that I’ve seen
tax losses in action the whole idea of a tax loss is that you're kind of manipulating how much money
you're making for capital gains to put yourself into a lower tax bracket and so people at the end
of the year they have tax benefits to losing money and so for people that have had very good years
taking a losses can be actually very beneficial to their overall tax bill at the end of the year
and so that's what we saw at the end of 2018 where we saw a record number of selling and I
think going into the end of this year I think we might be able to see if the stock market slides a
little bit towards the end of the year a lot of selling pressure as people try to lock in their
gains for the year especially going into 2020 when we have really no idea what's going to happen
and so I expect the market to sell off at some point maybe like a three four five percent move
in a couple days is that going to be a crash no but it gives some decent opportunities and so
I’m keeping myself very heavy in cash to try to take advantage of that and the stocks I’m
going to be targeting are going to be the blue chip stocks that I already own like
Nike Stock (NKE Stock) Apple Stock (AAPL Stock) Microsoft Stock (MSFT Stock) and I want to buy
into more of those to kind of keep myself a little safer going into 2021. these are
stocks that have done incredibly well in 2020 and I think they still have upside potential but I do
want to be able to buy them at a discount and give myself some time to see where the overall market
is going towards the end of this month so I think December is going to be a really interesting month
I think we're going to see a very nice bull run going into the end of the year and then I think
we're going to see some selling off going into 2021 and then 2021 who knows it's probably going
to be as interesting as 2020 was but I’ve had an incredible year and hopefully you guys have had a
very good year for your stock portfolio so let me know what you guys thought about my changes in my
portfolio and let me know what stocks you guys would like me to talk about in a future video
thanks for watching I appreciate all support and I will see you tomorrow.