hey guys how's it going it's Andy from Magoo investing happy Wednesday
so in yesterday's video if you missed that video I’ll link that up above right now I talked about
the ARK etfs and this was a a group of etfs created by Kathy wood and the whole idea is
that they're investing in innovation and exciting stocks and so there's five different etfs for the
innovation there's one that's just a general innovation they have some focusing on fintech
next generation internet robotics and there's a bunch of really interesting areas you can invest
in with these etfs and all of them have done extremely well in 2020. all five of their etfs
returned over 100% and that's very impressive and since I think of myself as a pretty solid
investor and I love the idea of creating a potential portfolio based off of a topic
or a general philosophy that you're trying to achieve I liked the idea of trying to create my
own ARK etf and the whole idea is that I’m going to pick 10 of my favorite stocks that have to do
with innovation in a bunch of different industries and so I’m not going to rely exclusively on some
of these you know companies that you've never heard of but I’m going to pick 10 stocks that
I love and the whole criteria I’m going to look at is if they're innovative and they do something
that really excites me going forward since I am talking about 10 stocks I am going to have
timestamps in the description below if you'd like to bounce around and then I’m going to end
up putting all 10 of these stocks into a fake portfolio and I’m going to follow them during
the course of 2021 and compare them to overall ARK etfs I think on average I’m probably going
to beat the stock market every year but my goal is to try to beat the ARK etfs with my innovative
portfolio so 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 for making any investment decisions I
really appreciate if that like and subscribe button as would help my channel out a lot
and so first I want to talk about Lemonade Stock (LMND Stock) ticker symbol $LMND which
is currently trading for $105 and it's probably the hottest IPO of 2020 shooting up 130%
on its IPO date and so I have made videos in the past talking about Lemonade Stock (LMND Stock) how
I thought it was going to be probably the best IPO of this year and how I thought it
was a stock that could double in 2021. the stock did fall 10 on Monday as insiders took advantage
of selling their stocks after the lock-up period expired but that doesn't really worry
me going forward considering the incredible returns that it's seen so far this year
this is a very different insurance company that's one of the reasons why I put it on my innovation
list because they use tech and transparency which is very unusual and such an established
type of business like insurance so they focus on the younger generation and people
that have maybe not had insurance in the past and the whole idea is brand loyalty to get people
uh into their insurance business for the first time and have them make the transition from being
getting renters insurance when they're younger to actually buying homeowners
assurance when they get older and so that's where they're going to be getting the higher
margins but the most exciting part and the reason why I decided to put on this list
has to do with their give back program so they have leftover money after collecting
all the premiums and paying out all the claims over the course of the year and anything left
over gets donated to a cause that's chosen by the customer and I think that's very exciting
and this gives them the title of being a b corp which I think is absolutely incredible when I
think of b corps I think of Patagonia which is one of my favorite companies out there and the fact
that there is a publicly traded company with an idea that I think is very exciting as the reason
why I decided to put it on this list with Lemonade Stock (LMND Stock) ticker symbol $LMND second up
I’m going to be talking about carbon emissions with Beyond Meat Stock (BYND Stock) ticker symbol
$BYND which is currently trading for 127 dollars and it's up 68 percent on the year
so I’ve talked about Beyond Meat Stock (BYND Stock) a couple times in the past month and I
still absolutely love them for the same reasons for one reason they're the only plant-based
meat company that's publicly traded until impossible likely goes IPO at some point in 2021.
but this is an industry that I think is going to explode in the upcoming years current estimates
that I found expects the industry to get almost 19 times bigger by 2030 and become an 85 billion
dollar industry and for innovation I love it for reducing carbon emissions livestock accounts for
14.5 percent of the annual carbon emissions produced by humans and being able to reduce
that and become more sustainable when it comes to our emissions I think is a fantastic goal and
I’ve really enjoyed the products that they've put out and the fact that this is a rapidly expanding
industry has me very excited for beyond me which is why I’ve decided to put it second on this list
next up I’m going to go with home fitness with Peloton Stock (PTON Stock) here's a little $PTON
it's trading for 152 dollars that's up 434% on the year and this might not seem super innovative
but I think it is and I decided to put on this list because it's my list and I get to decide
but they've made the home fitness space desirable and that's not something you could say
just a couple years ago they've reached 1 million users in 2020 and they're expecting
further growth they had a 420 million dollar acquisition of the fitness company pre-core
that will help with some of the problems that they've been having recently and their crazy
brand loyalty with their one-year retention rate of 96 boost their subscription revenue which is
one of the most attractive parts of their business yes they have one million users but that recurring
payments is what really excites me going forward in addition they have products that can be used
without Peloton Stock (PTON Stock) hardware which is also going to be increasing their
revenue they saw huge increases in their fitness subscriptions and revenue in the past quarter
and I expect them to continue their success in 2021 and continue to be the most dominant force
in this home fitness space next up I’m going to put Apple Stock (AAPL Stock) ticker symbol $AAPL
when it comes to overall tech they're trading for 137 and up 87% on the year and while you might not
think of Apple Stock (AAPL Stock) as being the most innovative company anymore just because
they've gotten so large I think they deserve to be on this list based off of their track
record this has been one of the most innovative companies of all time over the course of their
multiple decades that they've been a publicly traded company and with their announcement of
their potential EV car I think it's going to be very interesting also gives the portfolio a little
bit of stability by picking a company that has a two trillion dollar market cap next I’m going to
talk about Paypal Stock (PYPL Stock) when it comes to money ticker symbol $PYPL you could put Square
Stock (SQ Stock) ticker symbol $SQ in here but I like Paypal Stock (PYPL Stock) and it's my list
so currently Paypal Stock (PYPL Stock) is trading for 235 dollars and it's up 18
on a year Paypal Stock (PYPL Stock) is the king of online transactions
here's the trend of transaction volume over the past couple years and it's crazy to see the
incredible growth of this number over time they've seen massive user growth with their peer-to-peer
platform with Venmo going from only 3 000 users in 2012 to 52 million in 2020 and that's resulted in
a very impressive revenue chart with no quarters of decreased year-over-year quarterly growth
they've recently added the ability to do bitcoin (BTC) transactions on the platform
which I think is a great addition with 2020 and the massive ecommerce numbers from this year
Paypal Stock (PYPL Stock) is larger than Square Stock (SQ Stock) and is the reason why I decided
to put it on this list just because it's less likely to have a massive pullback because
it is up over 100 on the year but it's nowhere near the 200 percent increase that we've seen with
Square Stock (SQ Stock) number six on this list is going to be stitch fix stock (SFIX Stock) ticker
symbol $SFIX which is going to be my clothing innovator currently is trading for 63 dollars
and it's up 146% on the year this might not be the most exciting industry when it comes
to innovation but I really think that this company does something that's really cool
the idea is that the company uses algorithms to give style recommendations to people that maybe
wouldn't be looking for that type of product in the past and so they send you products and you
get to try on all the stuff and if you don't like it you send it back and you keep whatever
you actually do like and so I love the idea of it because it doesn't require you to commit to a
subscription model and so as a consumer I don't like the idea of committing to a subscription
model for this type of product that I’m not really sure how it's going to turn out this was one of
the most heavily shorted stocks for a long time and we've recently seen a short squeeze after the
last earnings report where they saw the company add 240 000 net new customers in the last quarter
and return a profitability that shot the stock price up significantly and so I love the future
of this company I think it's very interesting I think it's going to be changing the way that most
of these clothing companies do business so I think it's very innovative in its own space next up I’m
going to go with Twitter Stock (TWTR Stock) ticker symbol $TWTR when it comes to innovation on social
media and news it's currently trading for 54.40 and it's up 70% on the year so I think the area
that Twitter Stock (TWTR Stock) has innovated the most has to do with how we interact with
politicians and receive news in the past couple years more and more people are on the platform
and has become an important place to learn about politics I’m not saying that it's necessarily all
great but we have been seeing Twitter Stock (TWTR Stock) trying to improve the information that's
posted on their platform they've been trying to actively improve by making sure the information is
accurate they've been tagging tweets as misleading and it asks you to read articles before retweeting
them and so after the revenue dips that we saw in 2020 because of the pandemic and many of the
advertisers cutting back on spending because of the uncertainty I think 2021 is going to be a
great year for the company especially because after we're getting towards the end of the
election cycle it's not as maybe combative on the platform anymore so it might be a positive place
for advertisers to go back and increase their spending I didn't think it's interesting that 96
I did find it interesting that 97 of political tweets are from the most active 10
of users it doesn't mean anything but I just think it's an interesting number eight on this
list is going to be Roku Stock (ROKU Stock) ticker symbol $ROKU for these streaming platforms and
it's currently trading for 341 dollars and it's up 155% on the year the innovations that we've been
seeing in entertainment has mainly come from the streaming movement and the cord cutting movement
the numbers that I found shows that around 33% of us households are already cordless meaning that
streaming is going to only become more popular over time and unlike the giants of Netflix stock
(NFXX Stock) Apple Stock (AAPL Stock) Disney stock (DIS Stock) that are fighting for eyeballs
Roku Stock (ROKU Stock) is just kind of the middleman and doesn't have as much competition for
the streaming boxes yes you have Apple Stock (AAPL Stock) tv you have some uh you know like the Xbox
stuff and PlayStation but Roku Stock (ROKU Stock) is definitely the dominant force in their sector
considering that they have almost 40 percent of the current market with their variety of products
that range from the actual tv that is relatively expensive and then they have the cheaper products
for just the Roku Stock (ROKU Stock) sticks which makes it very accessible to a lot of
people that streaming becomes more popular over time I think Roku Stock (ROKU Stock) is going to
continue to increase in size number nine is going to be bitcoin (BTC) with cryptocurrency which is
currently trading around twenty six thousand dollars hard to argue that bitcoin (BTC) isn't
innovative yesterday we had the NFL player uh Russell o'coon become the first player to
be paid in bitcoin which is you know what the transaction wise it isn't that large I think
it's like 13 million dollars’ worth of bitcoin but it's the fact that some of these public
figures are coming out and showing that they have support for using bitcoin which is very exciting
and one of the reasons that I like bitcoin (BTC) a lot has to do with the technology that it's using
and it pushes for clean energy I saw this really interesting article that said that
76 percent of bitcoin (BTC) miners use renewable energies because it's much cheaper to power their
operations and the green bitcoin (BTC) theory is the fact that uh bitcoin (BTC) is going
to continue to be mined and the fact that the demand for energy is becoming higher and higher
with these uh miners it's going to be pushing the innovation when it comes to green energy and so
I do like bitcoin (BTC) just because of the cryptocurrency aspect of it but I do like the
fact that it is pushing green innovation and then the last stock on this list is going to be general
electric stock (GE Stock) ticker symbol $GE and that's also going to be mainly focused on clean
energy currently General Electric Stock (GE Stock) is trading for $10.66 and it's down four percent
on the year this is one of my personal favorite stocks overall and it is a part of my portfolio
at this point they're going to be involved in many green energy innovations going forward
they've already been helping to provide wind turbines for the world's largest wind bank off
the coast of the UK and they've also started a turbine blade recycling program that would lower
carbon emissions from cement creation which is a very exciting program and so maybe not
the most innovative company at this point but I’m very excited to see what they do in the upcoming
years so these are going to be my 10 stocks that I’m going to be putting on my Magoo innovation
etf no you're not going to be able to trade it but I’m going to keep track of how it's doing over the
course of the year and maybe after every quarter I’ll kind of check in to compare them make a video
talk about how they did compared to the arc etfs because I think innovation is a very exciting
area and depending on who you talk to different companies can be innovative for different reasons
so I didn't have some of the overlap that the ARK etfs have where tesla was a part of pretty
much all of their etfs but I am a big fan of all these stocks I think putting them together
this could be a very interesting portfolio this isn't what my portfolio looks like right now but
if I had to make an etf or a portfolio primarily centered around innovation going forward these are
my 10 stocks that I would pick so let me know what you thought about the stocks unless list
and let me know what you think is the most innovative stock that you love going forward
thanks for watching I appreciate all support and I will see you in the next video