Everyone is wondering the same thing: What are the best investment to make for next year?!
Hello Aluxers and welcome back to the Sunday Motivational article you’ve been waiting for so long! Today it’s all about investments.
2020 has been one of the most interesting years – to say the least – we’ve experienced in our lifetimes and since you’re interest is in making the most out of this period, we’re about to break down for you the best performing asset classes and industries of 2020 and what we’re betting our own money on, to perform well as we go into 2021.
6 months ago we made a video about stocks we purchased right as the pandemic hit and those of you who followed along have seen massive returns.
If with that video we were looking to capitalize on this unique opportunity and make as much money as quickly as we can, in this article we’re taking a more medium term approach.
The worst thing you can do is sit on the sidelines and expect things to get better for yourself without even playing the game!
As always, here’s the video version of this article:
With that out of the way, let’s take a look at the 15 best investments of 2020 and 2021
We said it once and we’ll keep saying it:
Real estate is the best investment! Medium & long term.
Many of you are probably waiting for property prices to go down, while smart money has already begun acquiring properties. The pandemic has forced some businesses to sell premium properties that they wouldn’t have otherwise let go, at discounted or fair prices.
Here’s a golden rule of real-estate:
The profit is made when you acquire a property!
And the pandemic proved to be a once in a lifetime opportunity to acquire undervalued great properties.
2021 is probably going to be another great year for real-estate prices since interest rates are so damn low and the businesses are still hungry for capital to keep the lights on, which is why they’re willing to sell off some of their assets. Be on the lookout.
GOLD & Silver
We love every opportunity to Hedge against the government.
For those of you unfamiliar with the term “Hedge” it means to make an investment that protects you against a financial loss.
Basically, we invest both in the stock market AND in alternative assets like GOLD & Bitcoin.
If the stock market does well and governments do their job well, our wealth increases.
If the government starts printing money like crazy, then the price of bitcoin and gold goes up – our wealth increases once again.
In the long term, hedging your investments is a great way to secure and grow your wealth.
The average return of gold in 2019 was 18%. In 2020, the year to-date returns of gold are close to 30%. Silver is also at 30%.
If you timed your purchase with the March collapsed -as many investors did- you would’ve seen even higher returns.
As long as governments keep printing new money, alternative assets will be an incredible investment. With 2021 around the corner, we’re more than likely to see another round of financing trying to “revitalise” the economy, allowing for even more opportunity for growth.
Electric cars have been the biggest biggest winner in the stock market. Despite the news, despite the industry pushing against it, despite the big oil money, people are betting long term on electric cars and the process results in incredible short term gains!
Here are the numbers:
TESLA’s year to date returns are 650%
If at the beginning of 2020 you invested $10,000 in Tesla stock, now you would have over 65,000 dollars.
Do you want to have your mind blown even more? Ok then!
Have you heard of NIO? Nio is basically China’s version of TESLA. They’re the biggest electric car manufacturer in China and the one most likely to win the EV market there.
NIO’s year to date returns are 1250%
If at the beginning of 2020 you invested $10,000 in NIO stock, now you would have over 125,000 dollars.
If one was paying attention to what is happening in the electric vehicle space you could’ve become a millionaire in 2020 with a 70 to 80,000 dollar investment.
And the year isn’t even over yet.
Still not convinved to push your chips in this market? Maybe the prices of The 15 Most Expensive Electric Cars in the World will make you go to the calculator again.
eCommerce & Consumer Staples
When the pandemic hit, every small business worried about survival. But what did the consumers did? They stocked up on everything they could get their hands on.
Anyone remember the 2020 toilet paper wars? Pepperidge Farm Remembers.
Remember when the government gave everyone free money? Where did that money go? People spent it at Amazon and their large chain grocery stores.
AMAZON’s year to date returns are 72%.
Target is at 40%, Walmart around 30% and this has been the case everywhere around the world. These stats speak volumes on how timed investments equals to superior returns.
Bitcoin & Crypto
When the pandemic hit and the government started printing money like crazy our focus turned to crypto. We were not the only ones to understand what is happening and more and more of our connections started reaching out because they needed help with getting started with their crypto investments.
Even unsophisticated investors wanted to get in on this.
We’ve had our eye on the crypto space since 2015 and have been active investors since 2017.
We’ve used our experience to teach our inner circle what blockchain is, how bitcoin works, where and how to purchase your crypto and more importantly to store it safely as a long term investment.
As of uploading this article we’re close to 3X-ing our investment we made just 7 months ago.
During the initial lockdown, We found ourselves having to explain over and over again the entire process to different people, so we decided to do something about it. Everyone should have access to this kind of specialized knowledge but explained in a simple and easy to understand way from someone they can trust.
We put everything on hold and began working on a secret project called BITCOIN ESSENTIALS.
Everything we’ve been teaching our family and close friends has been structured and put into a premium learning experience for you, the Aluxers!
We believe the biggest transfer in weath is happening right now and those who are willing to take part in this technological change will reap immense benefits from it. We did put our money where our mouth is, after all.
We genuinely believe this is the BEST resource for anyone interested in getting started with bitcoin and blockchain, because we made sure it is… and the best part is, NO Technical level required. We will hold your hand along the way and explain it in our unique way. We made sure that by the end of the course, both you, your children and your parents will be fluent and ready to confidently invest.
By the end of the course you will:
- Understand what Blockchain is, what Bitcoin is, and how they work.
- Understand & Use key vocabulary and concepts when discussing Blockchain and Bitcoin in business situations.
- Security: How to Purchase & Store your Bitcoins safely. (we will walk you through everything step by step), and lastly
- How to Invest, Transfer or Liquidate your Bitcoins if you want to.
This is the reason why Goal Mastery is late. This is the course our community needs right now, because we’re at a critical moment in time. This train is already moving.
Bitcoin Essentials is available for purchase starting today at alux.com/bitcoin
The course is more than reasonably priced at $250, but if you use the promo-code “ALUXER” at check-out you will get 25% OFF.
Here’s the thing: We believe so much in this product, that if you go through the entire course and still believe you didn’t get your money’s worth we will issue a full refund, no questions asked. You have absolutely nothing to lose.
The same thing we did with Mind Mastery, we’re doing again. We will take the product page down while the first batch of students goes through it. It could be 3 to 6 months before we reopen it and by then many of you would’ve missed an incredible opportunity.
As you check the price of bitcoin, you understand that this is a time sensitive opportunity.
Go to alux.com/bitcoin right now and make 2020 the year you’ve decided to invest in your future or you can sit on the sidelines. We’ll see you inside Aluxers!
If the electric car is any indication to where investments are going, the renewable energy space as a whole will be one of your safest bets.
Go Green ETFs have a year to date return close to 100%, basically doubling your money.
Everything that has to do with solar and wind is booming. You’ve probably seen campaigns even in your country where your main energy providers are boasting about how much money they’re investing in renewables.
This is where the puck is going and as the technology gets better and better the higher the scalable adoption will be.
IT & Big Tech
This has been the biggest year in tech.
The entire world ran a massive experiment in their ability to work from home. In just a few months, this new company called ZOOM crushed Skype, a company that has been the main video conferencing software since we can remember.
People purchased products online.
Food delivery became the main revenue source for restaurants and we all consumed more content than ever before.
If you timed it right, you could’ve literally pushed your investments in ANY big tech company stock and you should’ve seen 30 to 50% returns.
Netflix is at 50%, Apple is at 60%, Google, Facebook, Microsoft – all around 30 to 40%. The biggest one to come out of the gate was nVidia. They the biggest graphic card manufactured and their year to date return is at 125%.
Pharma & Health Care
During a medical pandemic, as you would expect pharma and everything connected to the field blossomed.
Every big company started competing in a race to get first to a vaccine and we already have 3 big winners.
Pfizer, Moderna & AstraZeneca are already on the cusp of mass production with their own version.
The biggest winner out of the 3 is Moderna with a year to date return of: 450%
Although this is an extraordinary result, there’s no way you would’ve been able to tell that Moderna will be the one to crack it unless you had a magic crystal ball. It’s apparent that healthcare investments are big this year.
Travel & Hotel Stocks
If you remember our stock video, you know that this is one of our favorite investments and it paid off great so far.
Basically, the entire hotel industry has been shattered by the coronavirus situation with stock prices tanking. We picked up all the big chains for cheap. Our bet is that once the vaccine becomes largely available we will see a steady increase in tourism as more and more people look forward to a new holiday after all this quarantine.
Hilton, Hilton Grand Vacations, Marriot and MGM provided us with over 100% return EACH since we purchased.
We were also betting long term on airlines, but the growth hasn’t been that impressive.
Right now, we’re waiting for the Airbnb IPO and we’ll probably get some of that as well, since some of our properties are monetized through them as short term rentals.
We are confident that 6 to 12 months from now, everything travel related will see a jump as travel picks up.
Index funds have been our go to recommendation for what we call lazy investments. Do you want your money to grow consistently without touching it? Go with Index funds.
S&P500 is an index fund bringing together the top 500 companies in the US. Basically you invest in all of them at once. It’s a great reflection of the US economy as a whole.
Here’s the thing, for the past 30 years, the S&P has consistently delivered over 10% yearly returns and this year is no different.
The markets crashed in march earlier this year, with the S&P dropping almost 30%. At that point everyone who was smart started buying.
By the end of August, all the loss had been recovered and now it’s going up. Even if you took the hit and invested in the S&P500 before covid, as of uploading this article you would still see +15% returns.
The thing is, not many people know how to leverage these type of events in their favor. We’ve learned how to monetize financial crises from a book called UNSHAKABLE by Tony Robbins. It works great as an extension to Money: master the game. You can go right now to alux.com/freebook and if this is the first time you sign up, you can get Unshakable as an audiobook for free thanks to our friends at Audible who are kind enough to support the community.
Energy & Petrol
We talked earlier about where the puck is going with the investments in the renewables, but this has been an incredible year for “where the puck is”.
Once petrol tanked, we were ready to buy and it proved to be a great choice. Marathon – 60%, Laredo 80%, Murphy-100%, Matador 270% returns. Truth be told we wish we would’ve both more.
End of July we picked up General Electric and 4 months later we’re up by over 50%.
Everything fuel-wise we see as a strong medium term investment. We’re being strategic and regularly selling a percentage of our high return stocks and shifting that excess capital to index funds for safe keeping.
Luxury & Fashion
Based on the profile of our business, you wouldn’t expect us to ignore the luxury industry, would you? Rest assured, we didn’t!
What we love about the luxury markets is that they’re not as affected as everyone else. Sure, there was the drop in March and April, sure we loaded up investments on everything we wanted and then we waited.
As we expected, the markets bounced back.
While the likes of COTY and Ralph Lauren provided steady 30%+ returns, Levi’s 60%, Tapestry, the former company known as Coach – you know their products – has been a real winner with over 110% returns.
Although historically we’ve seen bigger returns in the tech space, we always recommend diversifying your portfolio into industries that you have an interest in, that way you know about the companies that are struggling and those that are coming up.
We dislike banks as much as everyone else – one of the main reasons why we have our investments in crypto, but in times of pandemics, banks are usually the first ones saved by the government, so if there’s an opportunity to park some cash for short to medium term, we will take it.
We like Banks because they also pay dividends regularly, so it’s a form of passive income in addition to the growth of the stock price.
For example, the biggest investment in our banking share is held by Citigroup.
The return on our stock investment has been around 40%, but what might be interesting for you to know si that they also pay dividends 4 times a year and the rate is $0.51 per share owned, where the share price is around $60. You buy a couple hundred shares to hold and the dividends pay for your new iPhone.
The Companies That Make the Products You Use and Love
You’re here because you’re looking for advice on investments.
Our best take on this:
Look around you! What are you buying & what products do you love?
Then buy stocks in these companies. We get our coffee from Starbucks, so we purchased some stock. We wear Nike, Adidas and UnderArmour, so we bought them. We love Tesla, so we put some money with Elon. All the tv’s in our rental apartments are LGs, so we purchased LG stock as well. Love your playstation 5? Buy some Sony stock!
Every time we spend our own money on a product and we end up loving it, we make sure to invest in that company as well.
Investing in your favorite companies has become incredibly easy. We are not paid by any of these companies, but you should check out Robinhood, Revolut, eToro, Vanguard, Fidelity, E-Trade and so on.. You can google and pick any of them and they’ll get the job done. Just never go full WallstreetBets with your finances and you should do alright.
If you guys still find it difficult to start, let us know in the comments and we’ll make a step-by-step course into how we do it.
Our Most Recent Investment: Palantir
We get this kind of question all the time: “Hey.. what did you guys buy recently?! What’s the inside scoop?” – the truth is, there isn’t an “inside scoop”. We’re just paying close attention to the market and taking decisive actions when we believe something feels right based on all the experience we’ve learned from our investments in the past 15 years.
Many of you probably have no idea what Palantir even is.. But more than 2 years ago we made a video about Peter Thiel, which barely got 30,000 views.
Peter Thiel co-founded Paypal with Elon Musk and is one of the smartest and diligent businessmen we know. He’s one of our personal heroes. After the successful sale of PayPal, Elon Musk started Tesla and SpaceX and Peter went to invest in this new company called Facebook and on the side build Palantir – which was operated privately until this year. They went for an IPO this September and we were excited to be part of the action.
The open price was $9.50 per share and as of today it’s trading North of $30 per share, giving us a 3X return in 1 month and depending on how things go, we could easily see the price close to $100 per share in the next 12 months. With Peter Thiel at the helm we can’t wait to see what happens.
This is what they mean when they say Knowledge & Timing are more valuable than money, – and why we do these daily videos on a variety of topics, because the more you learn and understand the market, the easier it becomes to be part of it.
Sometimes: Not paying attention is costing you money!
Which brings us to today’s question:
If you had $100,000 to invest right now, what would your investments be?
We’re really curious to see how the community would do it and who knows you might inspire other Aluxers as well! We can’t wait to read the comments on this one!