 Good day, fellow investors! The Financial Education channel recently disclosed one of his portfolio and I thought it would be interesting for me to make a review. I always love to look at portfolios. Before we start, let me just tell you that I really think Jeremy is doing a great thing for the general public investing mindset. He's leading a lot of people to invest in stocks, some money that they would probably spend on some crazy things. Also, without Jeremy, without seeing what he was doing on YouTube, probably there wouldn't be a Sven Karlin YouTube because he really inspired me to do the same. So now let's analyze his portfolio that he recently disclosed to see, okay, what are the risks? What are the rewards? What is the investment strategy there? And I think I can really add value to all the people that might be following that or having similar portfolios. Let's start. What I figured out from his introduction is that this portfolio was created in 2018 so we knew he made more than 200 000 from his courses and YouTube video ads last year. That's very good from him, really amazing. I make just 900 something per month from my YouTube ads. So thank you for watching and just to note here it's all donated to charity. The plan is to help earthquake hit Nepal by building new toilets for school refurbishing classrooms and I have just recently donated 3000 euros, 3000 something dollars to work on new projects in 2019 and you can read more about that on my website. And I hope to reach Jeremy's levels of 5000 at least 5000 per month so that I can help more with this YouTube advertisements. Now let's dig into the positions. Apple, he says he didn't buy enough that's easy to say a posteriori. It's always when something goes up you're always said that you didn't buy more so he has just a small position. Apple there are videos on my channel. It's a good company. Warren Buffett is invested, yield but a small position. Alibaba, his only direct investment in China, a 10% portfolio position and here I would say it all depends on growth. If the company grows faster than 40% the current price is justified. If not it isn't so pure growth stock depending on what's going on in China how will their growth plans develop given the slowdown in China and the long-term expansion possibilities. So I see there are a lot of risk if the growth doesn't stay high so a growth stock. Similarly, serious logic, audio and video related chips, highly competitive environment, supply chains, who will buy from whom. Very interesting. I really will do a deep analysis of the 5G sector for a month. I will dedicate that to see whether we can take advantage of the sector but it has a 10% free cash flow yield for now. However, revenues are slowing as the demand for these things is always elastic so one should be careful there and see how this this will work into the cycle over production over supply or not. Earnings, corporate governance, I see a lot of gap and non-gap earnings. You can see here how the reported non-gap earnings are always much, much higher than the actual general accounting principles earnings and this is something you have to really take care because they make money then they issue stocks and then they buy back those stocks on the market and that's a cost. Depreciation is also a cost amortization but they don't report it so be careful with the earnings there. Callaway Golf, I analyzed that in some video somewhere about a year ago and they were really in trouble in 2010 so one must keep in mind that sales of those products really crash in a recession. Golf is a sport in decline so you are betting on the brand higher sales from acquisitions, the mastodont in golf buildings that they are building etc. So I would say very risky even and the PE ratio and the cash flow yield is just around 6% so not that high. Facebook largest position 25% I agree on with him on Facebook the ads and their future runaway but Facebook is just a small position in my portfolio. Why not a larger position because of timing? Yes Facebook ads are going to grow but it takes time for Madison Avenue to switch to Facebook Avenue so there might be a slowdown in actual revenue somewhere as the economy falters. You see what just a few scandals did to the stock, think of what an actual hit would do. Really economic hit so I'm a bit more conservative there but more about this in later in the discussion on the strategy. Intuit is one of those great businesses like Mastercard or something and I would say fully priced. The price to cash flow is 30% implying a 3% yield, the growth is slowish but stable so the expectation there is that the company will continue to do buybacks increase earnings per share and that the market will keep the same valuation. It is possible however given that we are in an expansion of 10 years I always see in these businesses okay what happens if there is a recession so keep that in mind and whether this company will be bigger in the 10 years will be their new competition etc. Similarly to Cyrus, Skyworks, connectivity chips, smartphones, 15% of the portfolio same as Cyrus, very interesting but I have to dig deep into the 5G, see all the opportunities, see whether there is a margin of safety because it's all about timing. 5G can be postponed by one or two years and then these companies fall in value, fall in revenue, negative earnings perhaps and then the stock price gets really really hit so you have to be ready to stomach that. Whirlpool he says it's a dividend play of 3% okay expanding Asia buying more appliances the company was hit hard because input costs were growing over the last year but okay a company small position. US Steel 10% position price earnings ratio of 4 here you have to analyze and understand the steel industry very volatile very difficult to invest in and I'll discuss more about that in a tech mining company which is also related to this a little bit later. Now I have three messages here the first one is we have to understand Jeremy's investing style which is different than many have so he said this portfolio was built over 2018 so this portfolio is his investing available resources over just one year he makes we know more than a million more than half a million probably a million who knows and he can deploy that money into the stock market so he's just buying buying and buying and if those stocks crash next year he will simply buy more from more investment in income so if you put this into a portfolio perspective okay my investment income how much can I dedicate to stocks let's say it's a thousand per month and then yes you can invest into Skyworks Cyrus Facebook and all those stocks because you know that next year in 2020 you will invest again 1000 if those stocks are down so that is from my perspective his risk management strategy is from the income he will be getting more in the future so it's not really a portfolio that is based on risk reward the risk is managed through his income that's something to keep in mind and if you don't have investing income then you should structure your portfolio much much different the second point is okay what happens to this these stocks if the bullish thesis doesn't work out as planned what happens if they don't sell much more chips if there is a competitor what happens if apple cancels the contracts with them they start doing their own what happens if the price of the chips go down because there is a lot of competition so small delays so with the growth what happens if the growth of alibaba is not 30% but 20 or 15 and these are very important timing issues so this is a portfolio I would say with a lot of timing into it yes it will do great if you get the right timing but you never know whether you have the right timing which such investments so yes stage it over a long somewhere in the future you will be right because the tailwinds are there and everything but you have to try to time it correctly or balance your investments correctly also what happens when something doesn't work out you simply open the eight ninth or 10th portfolio and you forget the first three four five portfolios that had big losers and this is a very big investment danger because then you are not really focusing rationally over your whole portfolio and investment performance you're always starting new portfolios so that you forget about the bad performances in the past that's a very easy behavioral finance investment trick to do to forget about the bad and focus on the good as Jeremy is focused really on the short term all my positions are in green it's about the business it's about the earnings it's about the growth there not about what the stock did so that's also something different that we simply differ from an investing perspective I'm not saying it's bad I'm just saying it's different and that's something you have to also see am I going to invest in stocks or in businesses and this makes a huge hell of a lot of difference when investing also as I was saying about the portfolios I have one portfolio when I add where I add 1000 per month which is my growth portfolio and then I have one lump sum portfolio that I'm building over this year and that will be my 100 000 k portfolio and if next year I add I don't know 50 000 it will be working like a fund so I have when I add the money I have to deploy that money equally to a cash position and to all the other stocks in the portfolio that's how a fund works you cannot simply add money and then buy this buy that or so you have to deploy it equally to a lump sum portfolio which is something that is very different from this constantly adding money adding money because it keeps you it keeps you to balance the risks you keep looking okay what can go wrong what can go wrong and that's the final message always look with this what can go wrong and how would that affect your portfolio so thank you Jeremy for this for enhancing this YouTube very nice portfolio and given his strategy and given his financial investments and income I would say it's a good portfolio because if it doesn't if it does work he will make a lot of money if it doesn't he will simply buy more and make a lot of money down the road so it's a growth investing strategy if you have the income to sustain it it will probably work really well if you avoid the losers the go-pros etc if you can do that probably with his experience now he will be able to do that so I wish him all the best thank him again for inspiring me to do videos thank you for watching subscribe if you like this a little bit different counterbalancing investment strategy and I'll see you in the next video