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    57. What Did We Invest In This Month? The Stocks And Funds We Invested In When We Got Paid In June

    enJune 05, 2024

    Podcast Summary

    • Airbnb's network effectAirbnb's success is driven by its network effect, making it more valuable as it grows larger. Founders' alignment with shareholders' goals for long-term growth and strong Q1 2024 results contribute to its continued growth.

      Airbnb's success can be attributed to its network effect, which makes the platform more attractive as it grows larger. Airbnb's founders, who still hold a significant portion of the company's shares, are also aligned with shareholders' goals for long-term growth. The company's Q1 2024 results showed continued growth in revenue and properties listed on the platform, which is important for maintaining the network effect and attracting more users. Andrea and Jamie, the hosts of the Stocks and Savings Podcast, each invest a portion of their salaries into the stock market every month. Jamie focuses on individual stocks, while Andrea invests in funds. Jamie recently added Airbnb to his portfolio due to its strong brand, network effect, and leadership.

    • Airbnb guest experience, Lululemon growth strategyAirbnb focuses on guest experience by removing poor listings and expanding internationally, leading to 100M+ nights booked at guest favorites. Lululemon's Power of 3 strategy includes product innovation, omni-channel experiences, and market expansion, driving success throughout the pandemic.

      Airbnb is focusing on improving the guest experience by removing poor listings and promoting high-quality ones through the "Guest Favorites" program. This initiative has led to strong growth, with over 100 million nights booked at guest favorite listings since launch. Additionally, Airbnb's expansion into international markets is contributing to revenue growth. However, there are regulatory risks for the company as some cities and countries implement restrictions on short-term rentals. Despite these risks, Airbnb's continued adaptation and growth suggest that it is here to stay. Regarding the investment in Lululemon, the speaker has been adding to his existing position despite the stock's poor performance this year. Lululemon is a designer, distributor, and retailer of athletic apparel and accessories, best known for its yoga products. The company has seen success throughout the pandemic due to the shift towards athleisure. Lululemon's growth strategy, called the Power of 3, involves product innovation, omni-guest experiences, and market expansion. Despite the challenges, the speaker remains optimistic about the long-term potential of both Airbnb and Lululemon as investments.

    • Lululemon and ProgynyLululemon's growth through international expansion, product innovation, and strong brand presence led to significant revenue increase, but negative revenue guidance impacted shares. Progyny, a $2.5B fertility benefits management company, offers potential growth opportunities for investors willing to take on more risk.

      Lululemon, a leading athletic apparel company, has seen significant growth through international expansion, product innovation, and a strong brand presence, particularly among teens. However, shares have been negatively impacted due to revenue guidance that fell short of market expectations. Despite this short-term setback, the company remains optimistic about its growth opportunities and is still on track to meet its long-term revenue targets. Another intriguing investment opportunity is Progyny, a $2.5 billion fertility benefits management company in the US, which provides fertility solutions to employers and has potential for growth. While Lululemon is a well-established brand, Progyny is a smaller, lesser-known company that could offer significant returns for investors willing to take on more risk. Both companies illustrate the importance of long-term investing and staying informed about emerging trends and opportunities in various industries.

    • Fertility benefits for employersProgyny offers employers personalized fertility support, access to top specialists, comprehensive treatments, and ongoing support, leading to high retention rates and steady revenue growth

      Progyny is a company that offers fertility benefits to employers as part of their employee health packages. Through this partnership, employees have access to personalized support, a network of top fertility specialists, comprehensive fertility treatments, and ongoing support throughout the treatment process. Progyny's data-driven approach optimizes treatment plans for better outcomes. The company's business model is unique as it derives most of its revenue from partnerships with employers rather than individuals. Progyny boasts near 100% retention rate, with many customers increasing their benefits each year, leading to steady revenue growth. Despite this, Progyny continues to add new customers and has seen impressive growth in recent years. The company's superior solutions benefit all stakeholders: employees, fertility specialists, and employers. The fertility services market is expected to grow, and Progyny's industry-leading clinical outcomes make it an attractive option for companies. However, the company has faced challenges in recent years, including layoffs in the tech sector and a controversial ruling in Alabama regarding frozen embryos. Despite these challenges, Progyny's long-term prospects remain strong.

    • Abortion laws, ProgynyThe US Supreme Court's ruling on abortion laws has led to unexpected consequences for Progyny, a fertility benefits provider, including a drop in usage and regulatory challenges, but its CEO remains optimistic about future growth and the company's attractive valuation

      The US Supreme Court's ruling on abortion laws has led to unexpected consequences for companies like Progyny, which offers fertility benefits. While some states are passing restrictive abortion laws, others are responding by strengthening access to reproductive health services, including IVF. Progyny has seen a drop in usage following the ruling, but its CEO remains optimistic about the company's future growth. Another key takeaway is the attractive valuation of Progyny, which trades at a low multiple of expected profits and has a track record of high revenue growth. However, there are risks associated with investing in Progyny, including the complexities of the US healthcare system and potential regulatory challenges. Additionally, the speaker discussed his personal investment strategy, including his use of a "global pie" on the Trading 212 platform, and the decision to switch from one index fund to another based on fees. Overall, the discussion highlights the potential risks and rewards of investing in a small, growing company like Progyny, and the importance of careful analysis and consideration before making investment decisions.

    • Investment portfolio changesThe investor shifted focus to high-quality companies, Axon Enterprises and Shopify, selling smaller investments and adding more to the best performers in his portfolio.

      The speaker made a change in his investment portfolio by switching from Vanguard FTSE All World ETF to Invesco FTSE All World ETF, citing no clear reason for the switch. He also mentioned selling smaller investments to focus on investing in high-quality companies and adding more to the best performers in his portfolio. The speaker highlighted two such companies, Axon Enterprises and Shopify, and explained his reasons for investing in them. Axon, with its monopoly in law enforcement products and continuous innovation, is seen as a brilliant company delivering great results for shareholders. Shopify, despite its volatility, was seen as undervalued after a market overreaction to its Q1 results. Both companies have shown impressive growth and have opportunities for further expansion.

    • Investing in Shopify and AxonThe speaker invested £200 more in Shopify and Axon, emphasizing their long-term potential, but investing carries risk and it's important to remember that this is not financial advice.

      The speaker continues to believe in the long-term potential of investments in Shopify and Axon, and they added £200 to their existing holdings in these companies during this month. However, it's important to remember that this is not financial advice and investing in these or any other companies carries risk. The speaker encourages listeners to give their podcast a positive rating to help it reach a wider audience and potentially lead to more resources for producing high-quality content. The speaker also thanks their sponsor, Trading 212, and provides a referral link for a free fractional share offer, but reminds listeners to check the terms and conditions. Overall, the speaker's message is to continue investing with a long-term perspective and to enjoy the journey of building wealth.

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    ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ for a free fractional share worth up to £100 when you sign up and deposit at least the minimum amount required for Invest or ISA accounts (which at the time of recording is £1).

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    --- Send in a voice message: https://podcasters.spotify.com/pod/show/stocksandsavings/message