Podcast Summary
Duolingo's user engagement: Duolingo's freemium model, gamified learning experience, and streak-based system contribute to high user engagement, leading to organic growth and a large user base with long-term commitment.
Duolingo, a language learning platform, was a new investment for Jamie this month due to its strong brand, gamified learning experience, and impressive user engagement. The company's freemium model and streak-based system keep users engaged, leading to organic growth and a large user base with long-term commitment. Jamie was drawn to Duolingo's mission to make education accessible and its success in doing so, as evidenced by the 20% of daily users with year-long streaks. These factors, among others, made Duolingo an exciting addition to Jamie's portfolio.
Duolingo investment: Duolingo's data-driven approach, freemium model, and strong financial profile make it a compelling investment opportunity in education technology with 100M+ monthly users and 28M+ paying subscribers, expanding into math and music, and strong leadership. Analysts expect profits to grow significantly.
Duolingo's data-driven approach, freemium model, and strong financial profile make it a compelling investment opportunity in the education technology sector. With a mission to make high-quality education universally available, Duolingo has seen incredible growth, with over 100 million monthly users and 28 million paying subscribers. Its recent expansion into new areas like math and music also presents potential for future growth. Duolingo's leadership team, led by co-founders Luis Von Ahn and Severin Hacker, have a strong track record and personal investment in the company's success. Despite a high valuation, analysts expect Duolingo's profits to grow significantly in the coming years, making the share price more attractive. However, competition and the need for continued growth are potential risks. Overall, Duolingo's innovative approach to language learning and its potential to expand into other areas of education make it an exciting investment opportunity.
Duolingo, Mercado Libre: Both Duolingo and Mercado Libre offer unique strengths and significant investment opportunities. Duolingo's massive user base and potential for expansion make it a rapidly growing company, despite challenges. Mercado Libre's established market position and diversification into new areas make it a well-positioned investment.
Both Duolingo and Mercado Libre present significant investment opportunities, each with unique strengths. Duolingo, with its massive user base and potential for expanding beyond language learning, is expected to continue growing rapidly, despite challenges. Mercado Libre, already a major player in the South American e-commerce market, is expanding into new areas like advertising and digital payments, making it a well-established and diversified investment. Duolingo's growth could be impacted by increased competition, a worsening learning experience, or failure to convert free users to paid subscribers. However, the company is expected to generate substantial revenue growth in the coming years, making it an intriguing investment. Mercado Libre, on the other hand, operates an e-commerce marketplace similar to Amazon in South America and has made significant investments in its logistics network. The company is also generating revenue from advertising and its digital wallet, Mercado Pago. Mercado Libre's share price has reached new all-time highs, and its market capitalization recently surpassed $100 billion. Both companies offer compelling investment opportunities, and the decision between the two ultimately depends on an investor's risk tolerance and investment goals. However, both Duolingo and Mercado Libre have demonstrated strong growth potential and are worth considering for any investment portfolio.
Mercado Libre's future potential: Mercado Libre's past performance and industry tailwinds suggest potential for future growth, but investors should consider economic risks in South America and prepare for volatility.
A company's strong performance in the past can be an indicator of its potential success in the future, especially when it comes to companies like Mercado Libre that have shown consistent growth and have favorable tailwinds in their industry. However, it's important to remember that a rising share price doesn't always reflect company performance and that there can be risks associated with investing in emerging economies. In the case of Mercado Libre, the company's growth in South America's growing economies and expanding middle class presents opportunities for continued growth, but economic instability in these countries can also pose risks. Additionally, investors should be prepared for potential volatility in their portfolio and consider selling a portion of steadier investments during market downturns to take advantage of buying opportunities in fast-growing individual stocks.
Selling portion of diversified portfolio: Selling a portion of a diversified portfolio to invest in individual stocks comes with significant risk and may lead to selling at a bad time and missing out on potential long-term gains
While it can be tempting to sell a portion of a diversified portfolio like a global pie to invest in individual stocks, it comes with significant risk. The investor in this conversation acknowledged that he had sold some of his global pie to invest in Doolingo when its shares dropped by 18%, but he also admitted that this approach could lead to selling at a bad time and missing out on potential long-term gains. He plans to make his global pie a larger part of his portfolio moving forward, as it provides exposure to thousands of companies and reduces overall portfolio volatility. However, he may still consider selling a small percentage of his global pie for individual stocks if he believes there is a compelling opportunity. It's important for investors to consider their investment timeline and risk tolerance when deciding how to allocate their portfolio.
ETFs and dividends: Speaker invests in World ETF's accumulating version, utilizes auto-reinvest for dividends, and adds Celsius Holdings and Duolingo to his portfolio, believing in their long-term potential despite challenges
The speaker invests in the accumulating version of the World ETF (FWRG) and utilizes the auto-reinvest feature for dividends to grow his investments consistently. He also added two new stocks, Celsius Holdings and Duolingo, to his portfolio. Celsius Holdings, a fitness-focused energy drink brand, has seen significant growth in recent years, but faces challenges such as inventory optimization by its major distributor, Pepsi. Despite these headwinds, the speaker believes in the long-term potential of Celsius due to its healthy and functional product offerings and international expansion opportunities.
Alphabet risks: Regulatory risks, such as antitrust rulings and potential competitors, could impact Alphabet's search business, but its high-quality, high-performing businesses in Google Search, YouTube, and Google Cloud make it an attractive long-term investment opportunity despite these risks.
Alphabet, the parent company of Google and YouTube, is a high-quality, high-performing business with a diversified portfolio in Google Search, YouTube, and Google Cloud. Google Search, which powers over 90% of global internet searches, generates the most revenue for Alphabet. YouTube, the world's most popular video platform, accounts for over 10% of total TV and streaming time. Google Cloud, Alphabet's cloud computing platform, is the fastest-growing segment and has the potential to be extremely profitable. However, investors need to be aware of regulatory risks, such as antitrust rulings and potential competitors like OpenAI, which could impact Alphabet's search business. Despite these risks, Alphabet's shares are currently undervalued, making it an attractive long-term investment opportunity. The speaker, who recently added Celsius Holdings to his portfolio, has learned from his past mistake of focusing too much on valuation and not enough on quality and is confident that Alphabet falls into the category of a high-quality, high-performing business.
Tech Stocks Investment: The speaker invested in Amazon, Airbnb, Invesco ETF, and Alphabet, expressing confidence in their long-term growth potential and attractive valuations, despite short-term market dips.
The speaker invested in several stocks during the month, including topping up existing investments in Amazon and Airbnb, as well as making smaller opportunistic buys in the Invesco EQ QQQ NASDAQ 100 ETF and Alphabet. The reasons for these investments varied, but the speaker expressed confidence in the long-term growth potential of these companies, particularly Amazon and Airbnb, despite short-term market dips. The speaker also mentioned the attractive valuations of these companies and their continued innovation and expansion. Additionally, signups for the Stocks and Savings Investing Course have opened up again for a limited time.
Investing course: The creators of this podcast offer a 6-week investing course with access to exclusive resources for beginners to transform into confident investors.
The creators of this podcast are offering a six-week investing course for beginners, which includes over 40 lessons and 100 videos, as well as access to an exclusive Facebook group and live Q&A sessions every three weeks. The course aims to transform beginners into confident investors. The podcast hosts emphasized that this is not financial advice, but rather a reflection of their own investing journey. They encourage those who find the podcast helpful to consider signing up for the course before the deadline. The hosts also asked for listeners' support in the form of podcast ratings and a referral link for a free fractional share offer. The ultimate goal is to help listeners build wealth while enjoying life.