In this week’s episode, the guys are reviewing the 2021 Official Second-Half Second Annual Stock Draft! Joined by a special guest, the WINNER of the draft – drumroll please… Hixon Zuercher Capital Management’s very own Client Service Administrator, Amy Young. Tune in now to find out where you placed in the final results, as well as what was in the winning portfolio, and strategies for next year!
Main Talking Points
[1:08] – Who is Amy Young?
[2:32] – Mustache Aversion
[4:22] – Why Are We Just Now Getting to This Episode?
[5:20] – Final Results of the 2021 Investopedia Stock Draft
[8:23] – Dad Joke of the Week
[9:18] – The Winning Portfolio
[10:04] – What is BTCM?
[12:57] – Stock Draft Rules Review
[13:36] – Amy’s Winning Strategy: Ride It Out
[14:44] – What We Learned in 2021
Links & Resources
Invest With Us – The Invested Dads
Free Guide: 8 Timeless Principles of Investing
Social Media
Full Transcript
Intro:
Welcome to the Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments. Here are your hosts, Josh Robb, and Austin Wilson.
Austin Wilson:
All right. Hey, hey, welcome back to Invested Dads podcast. The podcast where we take you on a journey to better your financial future. Today, we are going to be finally getting around to reviewing our 2021, official second half, second annual, Invested Dad’s stock draft. That’s a mouthful. Hey Josh, come on, come on, wake up. Well, wow. Guess this is already that boring, because Josh didn’t do that well as we’ll get to later, but since Josh is sleeping, I have a special guest with us to take his place, and that is the winner of the draft. So here we go. It is my great pleasure to introduce to, you our special guest for this week. Hixon Zuercher Capital Management’s very own client service administrator, Amy Young. Welcome to the show.
Amy Young:
Hello.
Austin Wilson:
And congrats.
Amy Young:
Well, thank you.
Austin Wilson:
Because, yeah, you won.
Amy Young:
I did.
[1:08] – Who is Amy Young?
Austin Wilson:
So Amy, tell us a little bit about yourself.
Amy Young:
Okay. Scoot over Josh, just a little bit. Okay. About myself. I am a mother of three, two boys, and a little girl. I’ve been working for Hixon Zuercher for approximately four years now.
Austin Wilson:
Not as long as me.
Amy Young:
Not quite. Just a couple months shy. Client service administrator here at Hixon Zuercher. I service clients with new account opening. I do cashiering for the clients. I schedule meetings, set up the quarterly reviews, prepare materials for the reviews. Little bit of everything.
Austin Wilson:
Literally, everything.
Amy Young:
A little bit.
Austin Wilson:
It is the other duties as assigned as, your job.
Amy Young:
That’s right.
Austin Wilson:
So you actually work at an investment firm. So this is cool, but working with us, with Josh and I, you have been following the podcast for some time. I know it’s your favorite podcast and you never miss an episode.
Amy Young:
I never missed an episode.
Austin Wilson:
That being said, yes, you are our big winner this year and we are thrilled to have you with us. So you told us a little bit about what you do, about your family, any investing experience that you have, particular that could have given you this edge, because wow, you smoked everyone.
Amy Young:
Besides the tools at my fingertips, which would be investment team, your research.
Austin Wilson:
Oh wow.
Amy Young:
That’s the tools that I use to pick my socks. So other than that-
Austin Wilson:
I wasn’t actually going for a plug there, but thank you.
Amy Young:
That’s the only tools that I had. And that’s what I utilized. Other than that, very minimal experience in picking socks.
[2:32] – Mustache Aversion
Austin Wilson:
Well, you could have fooled me. Also, I hear that you have a particular aversion to mustaches. Tell us about that and why that is a thing for you.
Amy Young:
I just am not a fan on certain individuals. I don’t discriminate on all mustaches.
Austin Wilson:
What Tom Selleck, is that a good mustache?
Amy Young:
That’s a good mustache.
Austin Wilson:
Okay. And why is-
Amy Young:
If you can grow it like that, then keep it.
Austin Wilson:
Why is his okay, and other people’s aren’t?
Amy Young:
Some people can’t grow it in as nice as good old Tom.
Austin Wilson:
So this aversion to mustaches has led to a reputation. And the reputation is, that you’re the bully around the office. Can you elaborate on that a little bit? Is it earned?
Amy Young:
I care to call it honesty. I’m more honest than I am, a bully.
Austin Wilson:
And this honesty has came about, because of a certain mustache in the office.
Amy Young:
That is true. Yes. There is an individual on our team that decided that a mustache was a good idea. Said individual likes to fill up his water occasionally throughout the day, which happens to be next to my location. So I got to see the mustache, I don’t know, five to 10 times a day. And I thought, maybe I should comment on said mustache.
Austin Wilson:
That’s it? I think it was more than that. Okay. So full disclosure, I was the mustache bearer and it was a great mustache. It was not Tom Selleck quality.
Amy Young:
It was not.
Austin Wilson:
It was pretty good for a 30 year old. However, you were not the only one that was not thrilled about the mustache. I was called a creep by multiple people in my life. And my wife stared at it one night enough that I got the drift, that it was time for it to go. So thank you for your honesty. This is why this is a podcast, because I’m not judged on my looks. I have a great face for radio-
Amy Young:
For radio. You do.
Austin Wilson:
Exactly. So yes, that is Amy’s reputation and she’s earned it, but we have a good time around the office and we give it right back.
Amy Young:
This is true. Very true.
[4:22] – Why Are We Just Now Getting to This Episode?
Austin Wilson:
So here we go. Josh, before we get going, any other thoughts on Amy and her background? Wow. Okay. Well, simple enough Josh. So Amy, I know you’re really wondering, why? Why now? Why are we just now getting to this episode?
Amy Young:
I am wondering.
Austin Wilson:
Well, the truth is that I would love to tell you, it’s because I just didn’t want to tell you that you had won.
Amy Young:
I think that’s the real answer. I think that’s what it is.
Austin Wilson:
The real answer is actually that, Investopedia didn’t have their crap together and our game closed on 12/31 and I could not go look at the results or anything after the game closed, you can only look at it when it was open.
Amy Young:
Interesting.
Austin Wilson:
That is interesting. And I bugged them so many times that they changed it.
Amy Young:
Nice.
Austin Wilson:
So at the beginning of February, I got access to our full results and transaction histories and stuff like that. So that’s why we’re doing this now, better late than never. And now it’s changed so that in the future, we will be able to do this on time.
Amy Young:
So I’ll be told I’m a winner, sooner next time, than later.
Austin Wilson:
You are the winner.
Amy Young:
I am this year.
[5:20] – Final Results of the 2021 Investopedia Stock Draft
Austin Wilson:
It’s hard to argue with that. So anyway, the moment we’re all for right here is the full results. And I want to say, that we had 18 people in our stock draft, 18 people that Amy was the first of. So in first place, I’m just going to use the user names, because I don’t actually have names.
Amy Young:
Okay.
Austin Wilson:
AYoung83, she ended… Well, I’m assuming it’s you.
Amy Young:
That is me. Number one.
Austin Wilson:
She ended with an account value of $117,879. That is an overall percentage change of 17.9% in six months. The number two person was AdamZuercher1477689404. That’s a mouthful.
Amy Young:
Yes.
Austin Wilson:
He finished with a return, I’m not going to go through dollars because it’s the same, of 16.8%. So you beat him by 1.1%.
Amy Young:
So he wasn’t too far behind.
Austin Wilson:
Correct. Number three was EHeminger, 15.1%. Number four was WHinks. That was 8.2%. Number five was MaddyMiller, 5.9%. Number six was AAWilson at 3.5%.
Amy Young:
Who’s AAWilson?
Austin Wilson:
That was me.
Amy Young:
Number 6?
Austin Wilson:
And we’re getting around to that. We’re getting around to that. Number seven was RHolbrook0818 at 0.9%. Number eight was TTime50 at 0.8%. Number nine was MacMulJC at 0.0%. Yes. You heard me. There are nine people and we are now at break even. So that means the remaining nine lost money, in six months.
Amy Young:
Wow.
Austin Wilson:
Number 10, Jessica.A.Hinks at -0.5%. Number 11, MAult1516 at -1.7%. Number 12, SMarkley1 at -1.9%. Number 13. Wait for it, Josh. This might be you.
Amy Young:
Wake up. Wake up Josh
Austin Wilson:
Man. He’s not into this today. JRobbHZ at -4.7%. Number 14, TraderBP at -7.4%. Number 15, DrMindbender14 at -11.6%. Number 16. I’m just reading the names here this is not trying to say anything inappropriate, 420stocknerd69, -12.7%. Number 17, JasonSummers, -24.6%. And 18, and last place WillMWCashNeeds at -28.6%. So that is the final results. I wish I could change them.
Amy Young:
I bet you do.
Austin Wilson:
I had a positive return.
Amy Young:
How did you feel when you saw the winners listed out there? How did you feel when you read that list?
Austin Wilson:
I felt that there were times where, I made some bad moves. And I felt that I could have easily won it, if I didn’t get greedy.
Amy Young:
Okay.
Austin Wilson:
But we’ll get to that later.
Amy Young:
I’m happy to give you some tips, if you need.
[8:23] – Dad Joke of the Week
Austin Wilson:
I appreciate that. I think I need all the help I can get, but I also need you to give our listeners what they want, and that is the dad joke of the week.
Amy Young:
Okay. This is for Josh. Josh, wake up. You really want to hear this. Okay. Are you ready?
Austin Wilson:
Oh, he’s ready.
Amy Young:
In the spirit of Valentine’s Day.
Austin Wilson:
That’s right.
Amy Young:
Here’s my joke. How much candy do you hope to get this Valentine’s Day?
Austin Wilson:
None. I really don’t like candy.
Amy Young:
You don’t like candy?
Austin Wilson:
Dark chocolate only. And only in limited amounts.
Amy Young:
Dark chocolate. That’s healthy, at least. It’s your choice.
Austin Wilson:
I’m a model of healthitude.
Amy Young:
Okay. Well you’re going to like this answer.
Austin Wilson:
Okay. Good.
Amy Young:
All right. I’m going to read the question again. You sure you don’t want to give it a shot, what the answer is?
Austin Wilson:
No.
Amy Young:
How much candy do you hope to get this Valentine’s Day? A choc-lot.
Austin Wilson:
A chalk lot. That is good.
Amy Young:
How cute is that?
Austin Wilson:
That is good, Josh. What you think about that?
Amy Young:
I’ll take over the dad joke segment for him.
Austin Wilson:
Yeah, I know. He’s really slacking today. So that is a great joke. Thank you for bringing that, because that is really, what our listeners listen for every week. It’s the dad joke.
Amy Young:
I’m one of those listeners.
Austin Wilson:
They come for the dad joke, they stay for the financial advice.
Amy Young:
That’s true.
[9:18] – The Winning Portfolio
Austin Wilson:
So let’s talk about your portfolio.
Amy Young:
Okay.
Austin Wilson:
And I have it printed out here, and I said out, like Canadian, practically, because I guess we are in the North, here.
Amy Young:
Yes.
Austin Wilson:
So we’re going to talk about your portfolio and we’re going to talk about the strategy that you used to build a portfolio. So I’m going to name the tickers, and we’re going to talk a little bit about the companies.
Amy Young:
Okay.
Austin Wilson:
One of your largest positions was Apple.
Amy Young:
Okay.
Austin Wilson:
And that did pretty well during the quarter. Why do you like Apple?
Amy Young:
Apple, it was the most recognized option for me.
Austin Wilson:
True.
Amy Young:
And reading through our portfolio and everything that we do with Apple. I thought, “I can’t go wrong.” So, I put more eggs in that basket, than maybe I should have, or I think I did my strategy really well.
Austin Wilson:
I think it did pretty well.
Amy Young:
So that was my reason for that.
Austin Wilson:
Next up was Amazon, sizeable position in that as well?
Amy Young:
I’d say, the same. Yes, exactly the same.
[10:04] – What is BTCM?
Austin Wilson:
Next you had BTCM, that is-
Amy Young:
So, what I do believe I was purchasing was Bitcoin, but I was informed by our research analysis here that knows everything that, that is not Bitcoin. Please disclose what that is.
Austin Wilson:
Yeah. It’s a Bitcoin mining company out of Hong Kong, and Hong Kong is part of China and China doesn’t really like Bitcoin. So it was under a bit of pressure, but you did not have a big position in it. So it actually did not detract from your performance. Next up, Costco.
Amy Young:
Costco, I shop there. So-
Austin Wilson:
It is a great… All the samples.
Amy Young:
It really is, yes.
Austin Wilson:
You can’t walk out there without spending $400, they have cheap gas.
Amy Young:
The only grocery store my kids are excited to go to-
Austin Wilson:
I know.
Amy Young:
Because of the samples.
Austin Wilson:
Lowes, that’s a good one. You got a big position in Lowes.
Amy Young:
Yep.
Austin Wilson:
MasterCard.
Amy Young:
MasterCard.
Austin Wilson:
I use it every day, right?
Amy Young:
Yeah.
Austin Wilson:
Microsoft.
Amy Young:
Microsoft’s another one within our portfolio that, I was following what our strategy here at HZ is, and-
Austin Wilson:
Let’s talk about Netflix.
Amy Young:
Netflix, yeah.
Austin Wilson:
Are you a Netflixer?
Amy Young:
I am.
Austin Wilson:
You use it a lot?
Amy Young:
I do.
Austin Wilson:
What’s your favorite show?
Amy Young:
It depends.
Austin Wilson:
Okay.
Amy Young:
We’ve recently just finished A Woman in the Window, Across the Window. I don’t know what it’s called.
Austin Wilson:
That sounds creepy.
Amy Young:
It is a little bit so yeah, we jump around on shows.
Austin Wilson:
What about, we got some Starbucks. We got one in town.
Amy Young:
Starbucks is my go-to. That’s my jam.
Austin Wilson:
What’s your favorite drink?
Amy Young:
I usually just do a caramel mocha latte.
Austin Wilson:
Yeah?
Amy Young:
Yeah. I’m pretty simple. I’m not fancy like that. I’m not one of those that knows how to order.
Austin Wilson:
You’re pretty simple. Even though it’s not this.
Amy Young:
It’s not black coffee.
Austin Wilson:
Not black coffee.
Amy Young:
I get a little intimidated when I go up there, because I’m not sure the correct lingo. They say, leave room for cream? I don’t know the whole coffee thing. So I go just, “Caramel latte.”
Austin Wilson:
You know how I avoid that?
Amy Young:
Just order black.
Austin Wilson:
Black coffee. Hard to mess it up.
Amy Young:
We have a pretty fancy coffee machine in our office.
Austin Wilson:
It is. I just finished a cup.
Amy Young:
We don’t even need Starbucks.
Austin Wilson:
It’s better than Starbucks.
Amy Young:
It really is.
Austin Wilson:
It really is.
Amy Young:
No, I wouldn’t say that.
Austin Wilson:
Okay. So then, you took a bet on the future.
Amy Young:
I did.
Austin Wilson:
Ticker SPCE, which is Virgin Galactic, Richard Branson’s space company.
Amy Young:
Yes.
Austin Wilson:
And you were betting on it, going to the moon.
Amy Young:
I kinda did.
Austin Wilson:
See what I did there?
Amy Young:
Yeah, I did. That was a good pun.
Austin Wilson:
Nice bet on Tesla, as well. Liking some electric vehicles. That is the future, as we’re all told. So, good move on that.
Amy Young:
Yeah.
Austin Wilson:
And finally, to a sizeable position in Walmart, because it seems to be a staple.
Amy Young:
It’s always there.
Austin Wilson:
It is always there. There are people there that are fun to watch.
Amy Young:
Yeah.
Austin Wilson:
The people of Walmart.
Amy Young:
So I don’t think I would change anything. Well, maybe the one mistake I made with the Bitcoin. Minor-
Austin Wilson:
I think that is such a small position in your portfolio that you rocked it.
Amy Young:
I did.
Austin Wilson:
You picked winners, you picked things you knew, and that is how to have a successful portfolio, over time. And you were diversified across of different sectors, different companies, different industries, and it showed.
[12:57] – Stock Draft Rules Review
Amy Young:
Did we tell the listeners what the dollar amount, that the starting amount was, that we were able to invest?
Austin Wilson:
Yeah, so we did that last year, but as a review, good idea. We had a hypothetical $100,000, and you could invest that in, up to a 10% position in any one ticker, at one time. So 10% would then, be a full position or you could invest in a hundred, $1,000 positions if you wanted.
Amy Young:
That’s a lot of work.
Austin Wilson:
It would have been a lot.
Amy Young:
Did anybody do that?
[13:36] – Amy’s Winning Strategy: Ride It Out
Austin Wilson:
No, there was some more than 10, but definitely not that many. At some point you start diluting your performance and it’s just a pain to keep track of. You built this on June 30th, the first day you could have built this, and you didn’t touch it until the end.
Amy Young:
I did not, I did not touch it. I let it ride.
Austin Wilson:
And it worked.
Amy Young:
Yeah.
Austin Wilson:
So what does that say about investing?
Amy Young:
Just ride it out. Ride it out.
Austin Wilson:
Ride it out.
Amy Young:
It works.
Austin Wilson:
That’s exactly what I would say as well. So the real question here, everyone wondering is, are you planning on defending your title? Because you’re a little intimidating.
Amy Young:
Okay. Well, I don’t want to be intimidating, but I am competitive.
Austin Wilson:
No, you’re intimidating. Trust me, I’m scared.
Amy Young:
That’s okay. I’ll take that. I’ll take it. It must be my height. I’m competitive by nature. So I do believe that I’m putting my shoe in for number one, for 2022.
Austin Wilson:
Yeah, like the Bengals.
Amy Young:
Like the Bengals.
Austin Wilson:
Putting it all on next year.
Amy Young:
Too soon, but… Too soon. The Super Bowl was just last night.
Austin Wilson:
Yeah.
Amy Young:
But yeah, hey, can’t win them all.
Austin Wilson:
So what is your strategy for 2022? Because, we’re going to do this in the second half again, this year.
Amy Young:
So my strategy is going to be, go to Austin’s office and ask him, some tips.
Austin Wilson:
Find all my notes.
Amy Young:
And then tweak it a little bit. And then, just whatever I go with, I’m going to ride it out.
Austin Wilson:
I love it. Ride it out, that is great.
Amy Young:
I’m not going to make any moves and just see, have faith in it and ride it out.
[14:44] – What We Learned in 2021
Austin Wilson:
So I think, as we review the second half of 2021, we can make some observations. So first, let’s open it up. Josh, any thoughts on what happened and what we can do, based in observation of what happened? Wow. He is quiet today. He must have had a really long night, staying up to watch the Super Bowl until 10 o’clock.
Amy Young:
The Super Bowl. I think he was pulling for the Bangles a well, so he probably-
Austin Wilson:
Well, that was rough. So not talking to Josh then, let’s talk about what we learned from this exercise. Number one, we can obviously learn that Amy Young is a winner.
Amy Young:
I like this lesson here.
Austin Wilson:
She did pretty well, she won. There’s no doubt about it. I’ve got the official results, the unofficial, official results right here.
Amy Young:
Mm-hmm (affirmative).
Austin Wilson:
So Amy is a winner and she is the defending champion in 2022.
Amy Young:
Real quick, the listeners want to know what my prize is. So I think it’s only fair to tell them, that I get gloating rights for an entire year-
Austin Wilson:
That’s true.
Amy Young:
Against the research team within our company.
Austin Wilson:
And probably some banana bread, at some point.
Amy Young:
I will take that. That’s a true winnings, right there.
Austin Wilson:
I’ll take one for the team there.
Amy Young:
All right.
Austin Wilson:
Number two, beating the market is hard and few people do it. So there were 18 people in the stock draft. Three, including Amy, three beat the market. So the S&P was up 11% in the second half of the year. And there were three that were over 11% return. So beating the market’s hard, few people do it. Number three, many big bets rarely pays off, because huge bets… First of all, we limited it to 10%, but even a 10% position-
Amy Young:
Sure.
Austin Wilson:
If it worked well, it was going to work really good and help you. If it did not work out well, that would’ve been quite bad. Number four, staying fully invested works. That’s what you did.
Amy Young:
Right.
Austin Wilson:
You bought, you didn’t touch it and you won. That’s how it works.
Amy Young:
Right.
Austin Wilson:
And that’s the same as it works in real life, ride things out. Number five, you invested in what you knew. You know these companies, minus the Bitcoin miner in Hong Kong, which was a mistake. But you know these companies, you shop at them, you use their products and you can vouch for how they are in your life. And you were betting to think that other people felt the same way.
Amy Young:
Mm-hmm (affirmative).
Austin Wilson:
And number six, investing is not trading. You invested, you bought once, you didn’t trade around, and you won because of it. And you were in it for the, I’m cool using air quotes, “Long haul”, in the six month timeframe.
Amy Young:
Right.
Austin Wilson:
It wasn’t long haul, but it was long haul for what we were doing. And that is a very different approach. And it worked quite well over that time period. So I guess, one thing to point out is that, like I said, we will be doing this again, in 2022. So stay tuned for details on that. It should be very, very similar to what we did in 2021. And Josh, I would like you to congratulate Amy one more time, because she deserves a round of applause. Well, I was clapping. He was snoring again, but anyway, Josh will be awake next time. It’ll be great. But Amy, congratulations. You’re the big winner this year.
Amy Young:
Thank you.
Austin Wilson:
We wish you the best of luck next year. And we’re excited that you can try and rub that in a little bit, because we’re going to beat you this year. That’s what we’re going to do.
Amy Young:
You know what, I’m going to say this one thing only. Well, first thank you for having me. It’s been a pleasure.
Austin Wilson:
I know this has been the highlight of your week.
Amy Young:
I will see you next year.
Austin Wilson:
That’s right. And as always, check out our free gift to you. It’s a brief list of eight principles of timeless investing. These are overarching investment themes meant to keep you on track, to meet your long term goal. Check it out. It’s free on our website. Josh, how can people help us grow this podcast and help people? Okay, well, I guess I’m going to have to go through Josh’s part this week. So number one, if you’re not, please subscribe, because we push these episodes out every single Thursday, and we would love you to get the latest one, directly to your device. Number two, leave us a review Apple Podcast. It really helps us to show up in people’s search results, and on their feeds. So if you wouldn’t mind doing that, please leave us a friendly review. Number three, email us any ideas to hello@theinvesteddads.com. We look forward to episodes that you guys want to hear. So send us ideas, send us thoughts, send us comments. How do you think the stock draft went? We would love to hear. So send us an email. We read every single one. And finally, please share this episode and any other episode, with friends and family that you think might enjoy it. Until next week and until Amy returns, to rub it in again-
Amy Young:
2022, here I come.
Austin Wilson:
2022, have a great week. Thank you, Amy for being here.
Amy Young:
Okay. Well, thank you for having me.
Austin Wilson:
Bye.
Outro:
Thank you for listening to The Invested Dads Podcast. This episode has ended, but your journey towards a better financial future, doesn’t have to. Head over to theinvesteddads.com, to access all the links and resources, mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review, click subscribe, and don’t miss the next episode. Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin or any podcast guest, are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast. There is no guarantee that the statements, opinions or forecast provided herein, will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is no assurance that any investment plan or strategy will be successful.
