Administration change = new opportunities
(or, How Obama doubled my money)
Part 1 of 3
Whenever there is an administration change due to a newly elected President in the U.S., it also opens up opportunities as an investor.
The biggest employer in the United States, is the United States. So, it stands to reason that whatever product, industry, or service the U.S. focuses on, that sector will move.
Knowing this, in 2008 I listened to newly elected President Barack Obama as a citizen and as an investor for clues on what direction the largest economy in the history of the world would be focused on.
It was headed towards renewables.
With this clarity of focus I started researching how I could play it. It seemed President Obama was focused on insulation-I didn’t see a clear play here. This was in spite of the fact that I had taken a course at Laney Community College in Oakland, CA to learn how to be a certified energy analyst. Why did I take this course? Because my old house was leaking like a sieve with an astronomical energy bill and I literally had to stop the leak. But I still didn’t see a strong play in insulation.
The country was just starting to get serious about solar but I didn’t see a lot of opportunities there either.
Finally, I settled on electric cars. Probably because I like cars.
Looking at the electric car space I narrowed my choices down to the Fisker Karma.
Fisker was not publicly traded but I found a back door into it by buying the primary component builder: Quantum Technologies.
My hunch proved correct when 8 months after I bought Quantum, they and Tesla were given huge government loans to build out their vehicles.
My investment doubled in one day.
Great, outstanding!!!
The company was in play and the car wasn’t even in mass production yet. So, I let it ride.
And then I gave all that increase back to the market when I didn’t take some profit off the table before it began to slide downward.
Kenny Rogers warned us:
You have to know when to hold em’
Know when to fold em’
Know when to walk away
(But never run)
-End part 1 of 3
Part 2 will cover why I never bought Tesla
Monk Says…
Investing is a game and I teach how to play it. Like Omar said in The Wire, “the game is out there. It’s either play, or get played”.
I recently retired early, and now that I’ve reclaimed my time, I use it to teach financial literacy to the youth, young adults, and the mothers who raise them.
To help spread the message of financial literacy, share this with 3 people:
- Your children/family
- Your good friend
- Your work buddy
Then ask them to give YOU their opinion on this post.
MonkSays.com