Investing for 4x Returns in a Metaverse Portfolio
The Neighborhood Finance Guy writes about financial literacy topics: Financial Planning, Budgeting, Millennial Money Management, Investment Strategies, Retirement tips, and more. The goal is to help you make effective decisions and set S.M.A.R.T.+E.R. goals with your money.
The information is free but the struggle is not sold separately. And, if you are into this sort of thing; the blog is PLUTUS nominated, I studied Accounting with a Specialization in Taxation, served in the US Marine Corps and now work as an Auditor. I’m also big on Traveling and watching Anime.
Summary:
- On October 28, 2021, Facebook changed its name to “Meta“. Mark Zuckerberg announced that the company is rebranding since the name doesn’t represent where the company is headed.
- “The metaverse is a very ambitious vision of the future – with photo-realistic avatars and spaces, EMG input (gestures, wrist movements), holograms and voice interactions that generate immersive virtual versions of work, play, socializing, shopping, traveling, etc.,” said Baird Equity Research analyst Colin Sebastian.
- “The Metaverse is the next big investment theme”, Morgan Stanley said (October 2021).
- The stock market is up over +20% in 2021. This Metaverse portfolio mix is up 60%.
- The infrastructure bill passed will expand digital coverage across the US, so we are tracking what Nancy Pelosi is investing in, as well.
- The market size for Metaverse stocks is expected to balloon in the next two years. Thought Sci-fi in presentation, the metaverse has the “potential to become the Internet 13 Pro Max”. An Expensive got-to-have product.
Table of Contents
So What’s So Promising about the Metaverse?
First things first, this should not be interpreted as investment advice. This is a blog post that I’m creating for fun and to help me contextualize how to deconstruct financial articles that I read online. The push toward all things meta, strikes me as something from Ready Player One or Wall-E.
The world is fundamentally different now. Distances have been shortened by the internet of all things, while NFT fortunes are becoming the new gold rush. One thing is for sure, global resource mining will go beyond our data. Companies want all of our time.
Before you invest, here are some ground rules…
If you need financial or investment assistance, I would recommend that you refer to a fee-online financial advisor who has a fiduciary responsibility to their clients.
Since investments can trigger taxes, you might want to refer to a Certified public accountant as well. And if you don’t have a lot of money, just start with a financial plan.
No need to play with your wealth, especially since too many Americans are retiring broke. No matter where investments go, the fundamentals hold true. You really need to know how to fish, forage, farm, or hunt for your food. And, you really need to own your own home.
The Metaverse will create Billionaires
Based on news reports, the metaverse economy could generate up to $30 Trillion within the next decade. By 2025, experts are projecting $75 Billion in growth. As more people are forced to work from home, the metaverse will offer alternate digital realities where people work, play, and socialize.
Currently, you only experience the internet when you log on. With new 5G connectivity and digital WiFi upgrades (courtesy of the 2021 Infrastructure deal), your devices and technologies will allow you to stay permanently connected.
It sounds a bit creepy but aren’t we already there? We have Alexa, Siri, and almost every device already connected and integrated. Some might harp on privacy concerns, but this might be an obvious next evolution.
Imagine having after-school campus available online or happy hour chats with avatars. It’s the Sims in real-time.
For some with impairments, this opportunity creates a limitless experience free from visual discrimination. That’s an invaluable proposition that can decentralize high-cost and high-density locations.
We are going Meta if we like it or not.
Setting the Metaverse trend
As always, I’ll recreate a portfolio based on what was discussed in the news reports using M1 Finance’s create a pie feature.
From that point, we get to play with what I think a good mix looks like, and voila!
This pie is a snapshot as of early November 12, 2021 (see Graphics #3).
Keep in mind that the one-year return for the S&P was 32.37% but if we count back to March 9, 2021, it’s around 20%.
Either way, this is still better than 0.01% in a savings account getting shredded by inflation north of +4% this year.
So What’s the Breakdown of this Meta Portfolio Tracker?
The TNFG Metaverse 2021 Tracker (see table #1) is fueled by Bustelo coffee and too much toxic time on Clubhouse. As such, try not to take this as an investment gospel. Based on the information available online, I’m going out on a limb and augmenting my investments for 2022.
I have a feeling that Crypto is finally here to stay. The next wave includes NFTs and these Metaverse options. As a gamer, I figure that the weight of each holding should look like this.
Table 1. TNFG’s Metaverse Tracker Holdings and 1-yr Averages
| Company | Market Cap | Dividend Yield (if Any) | *Market Growth Since March 2021 | *Current Price Per Share | Avg Target Price | *M1 Slice Weight |
| Nvidia $NVDA | 757.3B | 0.05% | 126.72% | $303.90 | $261.08 | 18% |
| Facebook (Meta) $FB | 972.9B | 0.00% | 23.92% | $340.89 | $397.32 | 15% |
| Unity Software Inc. $U | 56.2B | 0.00% | 93.29% | $196.65 | $170.08 | 15% |
| Amazon $AMZN | 1.8T | 0.00% | 13.34% | $3,525.15 | $4,158.21 | 10% |
| Autodesk Inc. $ADSK | 72.4B | 0.00% | 34.03% | $329.32 | $350.26 | 10% |
| Microsoft $MSFT | 2.5B | 0.67% | 54.92% | $336.72 | $360.74 | 10% |
| Roblox Corporation Class A $RBLX | 54B | 0.00% | 41.18% | $107.58 | $101.90 | 10% |
| Sea Ltd $SE | 149B | 0.00% | 90.91% | $341.29 | $395.84 | 4% |
| Shopify Inc. Class A $SHOP | 201.2B | 0.00% | 80.33% | $1,669.52 | $1,674.75 | 4% |
| SNAP Inc. Class A $SNAP | 80B | 0.00% | 33.25% | $53.70 | $75.32 | 4% |
| Avg | 0.076% | 63.70% |
MetaVerse’s Top Ten Out Performs The S&P 500 by 3x Returns!
After plugging in the numbers in M1, we can see this meta verse portfolio has been making waves since March 9, 2021 (see graphics #3). Over 63.70% rate of return on your investment, that’s not bad for 8 months.
It more than holds up against the S&P 500 for the same period (at 20.87%)(see graphic #2). The Vanguard total stock index $VTI maxed at 19.16% for the same timeline. Going Meta might be the topic du jour, but taking a risk in the future is timeless.
If you want to follow this pie, click here. It’s a link to my M1 pie. This is yet another reason why I love investing with M1 since we can easily share these portfolios with each other.
If you want the $30-for-30 referral, click here.
Top Three MetaVerse Holdings and How they are Tracking
- NVIDIA $NVDA is the pioneer of GPU-accelerated computing. The Company specializes in products and platforms for the large, growing markets of gaming, professional visualization, data center, and automotive. Its creations are loved by the most demanding computer users in the world – gamers, designers, and scientists. And its work is at the center of the most consequential mega-trends in technology. 5-yr growth 1,301.97%
- Facebook $FB was founded in 2004. FB now Meta’s mission is to give people the power to build community and bring the world closer together. People use its apps and technologies to connect with friends and family, find communities and grow businesses. 5-yr growth 186.41%
- Unity Software, Inc. $U is the world’s leading platform for creating and operating real-time 3D (RT3D) content. Creators, ranging from game developers to artists, architects, automotive designers, filmmakers, and others, use Unity to make their imaginations come to life. Unity’s platform provides a comprehensive set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. Apps developed by Unity creators were downloaded more than five billion times per month in 2020. 5-yr growth 187.71%
Final Thoughts
As price inflation and income stagnation hit record highs, investing your money is the only way to go. So much so that all the politicians who are already multi-millionaires are doing it. The bottom 70% of the US is fueling the economy through spending. The top 30% are injecting money through investment and getting better returns.
Turns out 2040 will be way more expensive than 2020. In order for the average person to keep their current $60,000 annual expenses lifestyle, they will have to up the levels to about $100,000. If you are feeling the pinch now, just know it will not be easier later.
Invest to hit your millennial millionaire mark, it’s less heavy lifting than you think. I dished out my Million+retirement strategies all the time. Feel free to read up on it.
Other great write-ups include:
- How to Build a 5-yr Portfolio w/over 500% growth potential,
- US Congress members invest their money to make millions, and even
- How to FIRE up your post-presidential election investment portfolio.
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