June update

Last month, my net worth increased from US$133,136.00 to US$135,312.00. Although this may not meet the high expectations you might have, it’s important to understand that stock markets do not provide a fixed, regular income, so some variability should be anticipated.

The good

• Meta is performing exceptionally well!
• Increased savings due to a permanent (albeit small) salary increase.

The bad

• Stocks like Alibaba, Oatly, and PayPal have significantly underperformed
• I made the decision to sell all my Meta stocks in order to invest more in PayPal.

Why PayPal?

While I would have definitely outperformed the market if I had held onto Meta instead of investing in other stocks, I believe that PayPal currently presents the best opportunity in the (relatively expensive) market. Despite facing tough competition, PayPal is a company that continues to grow and generate a ton of profits. As we approach Q2 23, we expect to see several key performance indicators improve significantly (Q2 22 GAAP EPS was negative, and I’m not sure most people know about the difference between trailing and forward indicators). Furthermore, even PayPal’s CEO, who undoubtedly has extensive knowledge of the company, recently purchased $2 million worth of stocks at an average price of $76.17 per share. The primary reason why PayPal is undervalued is due to the uncertainty surrounding the retirement of the current CEO without the announcement of a successor. However, I believe this presents an incredible opportunity for the coming year, similar to what we experienced with Meta last year.

One more thing

I want to clarify that I’m not a magician. I didn’t buy Meta at its lowest point. I started buying it at $220 and continued investing every stipend I received, even as the price dropped every week for nearly a year, reaching as low as $90 per share. I remember telling Filippo, a former Meta intern now working for Bending Spoons (the #1 Italian company!), that the lower the price dropped, the more I could buy. Now, the only thing that has changed is the stock I’m investing in: PayPal. I hope it remains at a low price for a while before skyrocketing!

Savings

The increase in savings is a result of a small salary increase that took effect last month. While there were higher expenses for holidays and flights, they were offset by reduced expenses on dining out.

Thank you for your support and encouragement. I look forward to providing you with the next update!