Indian-born Singh seemingly has the Midas touch, netting almost $50,000 over the past three years from investments in companies such as GoPro Inc (NASDAQ:GPRO) and Tesla Motors Inc (NASDAQ:TSLA).
“I’m not super rich, but the cool thing is I will be able to pay some of my MBA tuition fees with the trades I’ve made,” said Singh, who recently graduated with an MBA in finance from the University of California, Irvine.
Jim O’Shaughnessy: Fear Signals Created By The Reptilian Brain
ValueWalk's Raul Panganiban interviews Jim O’Shaughnessy, Chairman, Co-chief Investment Officer, and Portfolio Manager at O’Shaughnessy Asset Management. In this part, Jim discusses the fear and emotional signals created by the reptilian brain. Q1 2020 hedge fund letters, conferences and more That's very cool. For the factor to try to seek the reason why it works, Read More
Singh moved to the U.S. in 2007. He hopes to use the money to pay for grad school and potentially launch a career on Wall Street, if he leaves his current job at a medical device company in California.
Investing in tech stocks: Tesla, GoPro, Netflix
Singh takes a high risk, high reward approach, investing more than half of his portfolio in one tech stock. So far he has chosen three stocks whose value has since skyrocketed.
The savvy investor turned a huge profit on Netflix, Inc. (NASDAQ:NFLX) stocks, buying at $63.50 in October 2012 and selling them six months later for $186. His interest was piqued by their plans to produce original content such as “Orange is the New Black”, and his hunch that prices would soar certainly came to pass.
Another big earner was electric car maker Tesla Motors Inc (NASDAQ:TSLA). The California resident noticed an increasing number of Tesla cars in his area and decided to do some research, before picking up some stock. Singh then sat back and watched as the price increased from about $55 in May 2013 to $180 by February this year.
Singh also holds stocks in GoPro Inc (NASDAQ:GPRO), and seems unconcerned by the recent volatility of the stock. He is a big reader of Warren Buffett, and plans to take advantage of the drop in prices to increase his position.
His track record is by no means perfect, having lost money on smaller holdings in Twitter Inc (NYSE:TWTR) and Yahoo! Inc. (NASDAQ:YHOO), and his strategy occasionally causes tension between Singh and his fiancee.
“She’s not a big fan of me taking out my savings and putting it in the market. She’s obviously excited with the returns but says, ‘Take it easy,’” Singh said.
Tying up half of your portfolio in a fast-moving tech stock can easily lead to disaster, but Singh has no plans to change his approach to the market.
“I am on the lookout for that one stock that is going to make it big in 2015,” he said.
Of course, good luck is always better than bad luck. No doubt value investors will get a good chuckle out of this story.