For the past several years I’ve been knee deep involved in Ukraine and as several people on Tildes know, a lot of my earliest days were spent donating, tens of thousands. All in all I’ve donated enough to nearly bankrupt myself when my situation changed.

As I got more involved (and now I’m an active investor in the sector), I want to share something I’ve learned since that I wish someone had told me when I started:

Every dollar you have that you want to put to work can, on average, be 10x’d by the time you put it in.

That means if you want to donate 10k, you may well be able to end up putting 100k to work towards your goal.

You may have seen this take the form of donation matching — some fame seekers sometimes do it (I’ll donate 10 dollars for every dollar you donate), but this isn’t necessarily what I mean.

Speaking on an investment side: on average, 10% “skin in the game” makes it very easy to get the remaining 90% as long as there is a net positive outcome possible. So by positioning your donation as your skin in the game to a larger fundraise, you set yourself up for multiplying your impact by ten.

What’s more: let’s say you don’t want to donate 10k in bulk but you have a good job that allows you to set aside 1k usd per month. You want to donate half of that (500 usd). This means per year you can donate 6k usd.
Are you able to take a two year engagement? Congratulations, that means you are donating 12k and can now raise for 120k with 10% skin in the game (as long as the money isn’t needed faster than at the rate it can be committed).

I had this discussion with an acquaintance who has been in finance for a long time and got a very good job. She was trying to figure out how to “invest” 40k per year, that would otherwise be lost to taxes. On a 7 year engagement she has now setup a 10M climate fund (around 2% SITG which is standard for funds).

I was floored she didn’t know this. I figured the reason I didn’t was because I didn’t study economics, but it seems so fundamental that I want more people to be aware that this is a thing.

I have held out for years from getting a loyalty/membership card from supermarkets as I hate the tracking that they do. But here in the UK so many prices are now locked behind it in most supermarkets, it feels like I’m just giving them so much extra money it’s getting ridiculous. I end up spending more money to shop where they don’t do this, but most of the major players are now adding these member only prices it’s hard to keep the status quo.
For other privacy minded people, how do you manage this?

I'm extremely bearish on the US dollar and stock market and am wondering what other people think about how to prepare financially for the medium term future. I don't there's any other way you can cut it: there's a debt crisis and, worse yet, I don't think the US will be able to convince bond buyers that they're serious enough about the issue to avoid a debt spiral. The fact that gold has cracked 4000 (almost 4200 now, with BofA setting a 5000 target) seems to suggest that central banks are similarly pessimistic about a financial collapse. What do y'all think about where things are likely headed?

One question you can ask yourself before you invest in a company: why do I think the value will increase and provide a good return on my investment?

One reason is because the company is poised to grow at a rate above the overall market. These are called growth stocks.

Another reason is because the company is valued lower than it should be right now based upon a fundamental analysis of its fair market value. These are called value stocks.

Growth

With a growth stock, the current price may already be high due to strong demand, because people think the stock will be worth much more in the future. That is the risk you are taking, because if the stock does not outperform the overall market, you are now behind.

Having a good knowledge of the market in which a growth stock company operates is very helpful. There may be market disruptions (AI anyone?) that lead to outsized expected growth. Look at Nvidia’s 5 year chart. Tell me when everybody figured out Nvidia’s chips were amazing for AI processing.

Or Amazon during the pandemic. Look at this chart and tell me when everybody figured out that if you can’t go to the store to buy things, you are going to need to order it online.

These companies were sitting in a market that, for whatever reason, had amazing growth potential. The companies were able to use their core strengths to jump ahead of the overall economy in terms of value creation speed.

Value

As mentioned, value stocks are those that, after lots of research into the company and market itself, you think the price of the stock should be higher than it is right now. And you expect that stock price to rise as everybody else realizes all the amazing things you already realized.

The stock could have been beaten down by some newsworthy event, which caused everybody to panic sell. These stocks are trading nowhere near their high marks. However, if you think the stock will get back up to that high water mark, you may have found a good value stock.

Now, determining which stocks that have suddenly dropped in value are actually value stocks takes research. You don’t want to “catch a falling knife” by the blade and end up bloody. You want to be able to catch the handle! Does the company have enough cash to weather any storm? Are creditors piling up? Is the photograph printing market shrinking incredibly fast and the company is not making the right decisions? Back to that fundamental analysis of the company itself - if you look at the financials and are impressed with the leadership's team ability to navigate that quick drop in stock value, then you found a winner!

Warren Buffet seems to think United Health is a value stock. As you can see, the stock is about half of its initial value. Buffet is in this for the long term and is hoping that his research is correct in terms of UnitedHealth potentially doubling back up to its previous value faster than the market as a whole would double. Either that, or he hopes his clout is enough to make it a value stock in that more people will invest just because he did.

Holy cow done

That about wraps up the difference between these two types of stocks. Many stocks are a blend of the two, also. But seeing the extremes helps with understanding this way to differentiate stocks. Yes, there are more specifics that I didn't fully get into. And yes I am trying to be as approachable as possible with the topic. Hopefully this helped you!

Can you find an example of a potential value stock out in the world currently? How about a potential growth stock?

Any interest in forming an investment club?

We would meet regularly (TBD), learn techniques from each other, pass on knowledge and experience, and present our individual analysis.

The chair would keep people on track in between meetings, encouraging the hard work of spending your own time researching duds in the hopes that one of us finds a potential gem for us all to enjoy.

Theoretically, we would want to research company stocks that are easy for all to buy, so I would be interested in a group based upon major US indices. However, this thread could potentially be used by others to form their own group buying from other markets.

Edit: alright, I'm sending direct messages to those who expressed interest in wanting to contribute. Those who expressed interest in learning will potentially be able to learn with however the group decides to communicate to Tildes.

If you are interested in participating, you can leave a comment here or send me a message for now. Thanks!