Day 3 Notes

Wall St Trapper

We are only supposed to give energy to activities or thoughts that progress our purpose. 

This is why I love Fintech- opportunity that you take advantage of can catapult you, the opportunity you miss can set you back. 2008  to now how much wealth was obtained during that era? the people that took advantage of that recession added billions to their net worth.

If you miss it, you can't blame anybody but yourself. 2008 I came off prison, I wasn't there for that. but in 2020 I tripled what I was worth. I said, this is the opportunity. 

Wealth is a skillset that has to be developed. It requires planning, tools and execution. information is the tool. 

Q: What to invest in for those that are new?

A: I rather you learn and research companies than give you a list of stocks to buy. Before you jump in anything I want you to research and understand what you are investing in. I want you to understand the dynamics of how they operate. Get into the ETF, (make money while you are learning). but make sure the top 10 holdings in the ETF are not similar, not doing the same thing. there are going to have a mixture but you don't want the same thing driving the ETF.

Q: the ETF that stood out to be is the VFIN. it only has 22 companies and the came out in December 20th, 2020.  I wasn't sure about that ETF versus other ETFs in Fintech. it combines stocks with option contracts.

A: I wouldn't do it. the option contracts can make or break your profit. you are treating it like a gamble, not an investment because the volatility is high. 

Q: how do you stay focused because I do research on one company then they talked about another company and it sounded more interesting.

A:  you have to remember of why you went there in the first place. this is why I know about so many companies, 

you start doing research on one and you learn so much about another one. Look at the fundamentals. 

Understanding, Longevity- do I see it staying here for the long term. Expansion- can this business scale? simplicity. but don't disregard it, remember why you went there. sometimes you get led to a better company, if its a better option I have done that.  

Q: We talked about automation. I started a sneaker buying service. I  was buying 200 sneakers every Saturday. I bought multiple kicks in a second. expand that into buying stocks, we can all buy all the Nike stocks in one day possibly so automation is real. 

A: people creating the system is still figuring the system out. It's been in play. as the world evolved, layers of the game start to get peel back. as they peel back a layer, something else gives birth. 

FINTECH IS A WAY FOR THE UNDERBANKED AND THE UNDERFINANCED TO NOW HAVE A SEAT AT THE TABLE. 

underbanked- certain people cant get checking account, loans, business loans. 

In Kenya, they turned the phone into a bank. when they introduced bank into the phone, crime went down 2 percent  a year, why? people were no longer walking around with cash (nothing to steal). it also took 2-3% of people out of poverty every year. Mercy came from Germany and flew to meet me. She used to live in Kenya. It takes the everyday person to bank in phone, no more fees and no more criteria involved. Every time you take the middle man out of there. 

Q: square got FDIC insured. any reservation if they put additional regulations that they will put on these intuitions that will prevent them to serve the customers the way the want to.

A: of course. old wealth is attached to the old banking system. they are going to come up with so many restrictions for them. all its going to do is prolong the inevitable. Younger generation that don't want to step foot in a bank. Paypal and Square have more users than traditional banks. 

THE ONES THAT HAVE POWER TO BECOME BANKS IS THE ONES WE SHOULD BE PAYING ATTENTION TO.    

There's a reason Goldman Sachs attached themselves to apple. they are prestigious. they see the writing on the wall, for them to be with apple. 60 percent of people investing now have never heard of Goldman Sachs before. they only deal with people with money. they got with apple and backed the credit card. those strategic partnerships. I know the people playing the game, the rules that they make then I can position myself.  

Q: I got a nice percentage of some crypto, because I wanted a piece. I got Paypal. Should I invest in interstate, the vehicle or the infrastructure?

A: I love infrastructure because cars can crash if the wrong person drives it. infrastructure is built to last. Paypal is building infrastructure. Affirm is a car. *** Great ANALOGY***crypto is a car, blockchain is infrastructure. Brain is infrastructure, body is car. 

Q: how did you buy a farm? if I put all my money in investments how do I then have the money to buy a farm? I'm already retired.

A: financial literacy is more than just investing. your money is what works for you. what does it cost for me to live? I know how much it cost for me to live and run my business. anything outside of that for me is investment money. I don't live a crazy life. the more money I have working for me, the better I'm off. 

Q:  (same lady) so you use your investment money to finance your lifestyle?

A: Not at all. my investment are made for my investment. to live, only thing i think about. I have a business and I also go inside stock market. another reason why I talk to people about being able to do options. I leveraged my way into the option where I can now make money. Over last 8 to 9 days i made 120,000 dollars. my option money goes 4 ways, 

1. back into my option account, 2.money goes to long term investment account, 3. goes into dividend account 4. of course, goes to me. 

PRINT MONEY, BUY FREEDOM. learn to do that. never depend on anyone else to feed you. if you allow them to feed you, you give them permission to starve you. 

70 percent of my money goes to investment (from the business). but I won't be this young and fine forever (lol). I invest way more than I spend. 

Q: the goal is financial freedom. me and my wife look into income replacement. we have to join the class to learn about options and learn that game. I wanted to ask about meeting goal of income replacement and investing for future and are NFTs associate with fintech?

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NFTs are associated because its based of cryptocurrency, it uses Ethereim, and runs off blockchain. income replacement comes a few ways. dividends require a lot of capital (to get enough money off dividend to live off of) . we learn options to fund the dividends. people that took the course started making money that same week. 

dividends can be a source of income. but requires larger capital structure. because you need to buy the actual stock so that the stock can produce the dividend.  we use the money we get from the dividend in the beginning to that the dividend now buys me more share of the business. when its time to retire, this is now becomes a stream of income. 

How do we get into buying fixed income that gives me a lump sum every year? 

another way is options. there's covered calls on options, where we can sell the options instead of buying the option. , that's becomes like rent money. we get that payment every time. 

leveraged ETFs (talked about in the portfolio class)  is also another income source. 

there's maybe 5 ways to make this money. 

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Q: when research FinTech how important is the end to end payment process?

A: important if we are using a payment system. are we looking at peer to peer lending, banking? If its machine learning, AI and automation (company i'm guessing) it may not be important.

Q: no one talks about how its going to affect public assistance. how is FinTech going to affect how payments are disbursed? will Fintech have a role in assistance.

A: yes, people on assistance use a card. your bank gives you an option. paperless or charge you to get it in the mail. same way with assistance, everyone gets a card and that card has the data. everything now will be in one place. someone getting child support they might put all of that on one card. they might make it where you can pay bills through that card too, payment software. 

Q: who is printing those cards? are they publicly traded? can we invest in those companies? how can we get into that information?

A: look at the card, look at the bank. who printed the card. Just like looking at a product on the shelf we look at the product and we say who made this product? then we do search engine. which company has a government contract. what bank is merging with this company to assist public assistance. payment processing, payment solution might be the key words, not Fintech. A lot of them may not be public companies just yet. If we look at companies that are private they can give us the writing on the wall of what companies might go public. 

***Powerpoint: Fintech bootcamp****

Who is the plug? the banks have been driving Fintech and will not be taken out by Fintech. 

Old money will fight new money until they figure out how to convert. they fought crypto until they found  a way to incorporate crypto into what they were doing. Banks are the drivers, they will not be taken out. Only the strong ones survive though. some credit unions will go down. 

Instead of being taken out, they will partner with others in the space (like Goldman Sachs with Apple).

TOP Fin Tech startups segments, by number of US bank investors.

categories: payment and settlements, capital markets, data analytics, accounting and tax, wealth management, blockchain, personal finance, data aggregation.

JP Morgan and Goldman Sachs have the most money in hand. Citigroup is investing in payment (technology). Goldman Sachs wanted exposure to the masses, that's why they partnered with Apple on a credit card. once 2015 hit, everybody doubled down on all things investing in FinTech. why? because its changing the way everything is happening. It also allows them to have reach to more people. 

Intuit got Quickbooks, where you do your taxes. This is going to put a dent into H&R Block. 

Real estate, Upstart will allow you to get a loan not only for a car but also for a house. they want to pass the FICO system, they use your employment history instead of your credit rating. This is something that FICO wouldn't dare do. that puts Equifax, Transunion, all in a situation. how many people would have maybe a home and a car and other things if it was only based on employment history. 

SoFi came in and helped people with student loan rate. they had a triple rate rating. their mission statement to help you save, spend, borrow and invest. (stock symbol SOFI on the Nasdaq). 

if I give you 10,000 invest it and get 100 percent return on your money. We get lost on interest rate all the time. they matter when you buy a liability. if go buy a asset, if you take that money and go make some more the 22 percent is irrelevant, because the asset will take care of it for itself. 

Mobile wallet are going to be a thing. store your information on there, your cards are on there. 2 stocks I love in Blockchain, HUT 8 (stock symbol HUT on TSE) its a bitcoin mining stock. its up 222% percent in one year. Its based out of Canada.  

another one, BTBT is a bitcoin mining company. (very affordable stock).

Let's talk about business loan. It will not stop, it will keep going. Kabbage is dope. my friend got a 150k business loan through them. I was shocked, and this is without stepping inside a bank. Its  a private company, not public yet. Another one is Lendio (also not public yet). 

LendingClub, lending tree, all private. only a matter of time before they become public. 215 FinTech companies on the market. 

Alternative Credit: NovaCredit company. underwriting is important in insurance. 

Oscar helps people get claims in medical coverage (serving the underfunded), now you are threatening blue cross blue shield. 2 industries that no one messes with, agriculture and health insurance. 

Payment gateways: Stripe, AllyPay, Zelle by Paypal. What do you think Zelle is?  use your Zelle so that we can track your business transactions for you. JP morgan has a mobile investment platform. 

Digital wallets- Venmo, square cash, google wallet

Asset management: Robinhood, Digital banking: N26. Digital Insurance: Lemonade.

Follow the money!

***Metaverse: is a hypothesized iteration of the internet, supporting persistent online 3-d virtual environments through conventional personal computing, augmented reality, virtual reality, etc. ****

Mark came up with this thing where you can say I don't want to be tracked. that put a damper in the money that facebook was making. #1 advertising in the world is done through Facebook. 

Apple has 1 billion users. now billions and billions of dollars get lost. The way I made billions of dollars I cant no more because people are not letting me track them (since Mark gave that option, most people will agree not to be tracked, all that data doesn't get used for advertising). Mark teams up with Microsoft. Microsoft has a huge user base. Together in this Metaverse, now they truly. Microsoft doesn't always work on apple stuff. 

Mark put himself in a situation where there's no single point of failure. Because the only way that you can get to Facebook is through app store and here. Now he partners with Microsoft, now I can transition to another software company, I'm not sitting on one platform. (like a good business owner, not dependent on just one company). Let's get Microsoft users into the metaverse. 

we can set up office spaces inside the Metaverse, and because we're partners its cool. we can have meeting inside of here, since we're together we can make it work. facebook microsoft partnership, how does this involve fintech? in order for metaverse to run, it has to run in real time. real time computing and machine learning is needed. Facebook is someone you should look at whether you like it or not. 

Dig deeper: online gaming is a thing. online betting is a thing. Paysafe is the digital cash and digital payment for online gaming. who is their biggest client? amazon and twitch. PSFE is ticket symbol. looking to structure with Roblox, another metaverse.

Paypal is down 15 percent right now. does that make it not a good business? you have to understand stocks go up and down all the time. in the beginning of anything there will be 100 percent trial and error. 

SE Stock symbol is a payment platform. its a digital payment. VPN, every one should look into getting a VPN. cyber security and fintech are my thing right now. risk of getting hacked is going to go up. it would allow you to orchestrate through the digital world anonimously, they wont be able to see who you are. see how to go about getting a VPN it would be needed. SE is up 70 percent in a year. 

Affirm is up 160 percent in 6 months. upstart 485 percent year to date. 

Just for you.. affirm current price $200 (its actually 151 right now). and it stopped!!! recording not available.