Stock investment in 2020: 3 actionable learnings

2020 is a rough year: an unprecedented crash followed by a steady boom that is still going on today. Here are my 3 actionable learnings:

The market crash could be an opportunity

• Upon the 2020 market crash, one might be able to achieve more upsides by switching S&P 500 to a portfolio of companies with a great cash flow (e.g. Apple), or a resilient business model (e.g. Amazon), or in industries that can be benefited from the consequences of the market crash’s root cause (e.g. Chegg in online education).

Different upsides on Mar 09, 2020 (circuit-breaker): AAPL, AMZN, and CHGG compared with S&P 500

Lookup for disruptive technologies

• Invest early and steadily into top runners or well-managed industry ETFs in disruptive technologies for the next 5+, 10+ years.

The surge of gene editing (green) and 3d printing (purple) company stocks/ETF in the past 6 months compared with S&P 500 (blue).

Find under-valued runners-up

• While the most popular player in an industry is surging, it is possible that the runners-up have not received much market attention and are undervalued.

In the EV charging industry, the less popular PLUG grows substantially 7 weeks after the initial surge of BLNK.

Disclaimer:

The above is not investment or financial advice. It is educational content that is based on personal research and experience. It is shared for informational purposes only.