The speaker begins by discussing their investment portfolio and how they had too much cash in January 2021 after profiting from GameStop. They regret not investing that money promptly. They mention the uncertainty of predicting market recessions and their plan to gradually invest their cash. They then discuss three stocks they're adding to their portfolio:
1. PayPal: They analyze PayPal's performance and suggest it might be a good investment due to market pessimism.
2. Harley Davidson: They discuss Harley Davidson's various business segments, focusing on its motorcycle manufacturing and financing. They believe it's undervalued.
3. Shipping Industry (Sim): They mention that cyclical stocks, like those in shipping, can be profitable in the long term if bought at the right time, considering average price levels and the company's survival during recessions.
They also hint at another video they made on Sim and Myers (another shipping company) and encourage viewers to watch it.
Here are the key facts extracted from the text:
**About PayPal:**
1. The author had a significant profit from investing in GameStop in January 2021.
2. They struggled with having too much cash in their portfolio.
3. Initially, they were hesitant to invest due to concerns about a potential recession.
4. The author added PayPal to their portfolio in October 2023, considering it undervalued.
5. The author believes the market has been overly optimistic about PayPal, which led to overvaluation in 2020-2021.
6. Revenues for PayPal slowed down, but operating income still grew by 20 percent in the second quarter compared to the previous year.
7. The market values PayPal as a growth stock, but the author is skeptical about this classification.
8. The author is cautious about investing in PayPal due to uncertainties about potential future recessions.
**About Harley Davidson:**
9. The author is adding Harley Davidson to their portfolio in October 2023.
10. Harley Davidson has three business segments: LiveWire (electric motorcycles), traditional motorcycles, and financing.
11. The author is particularly interested in the traditional motorcycles segment because of the brand's popularity.
12. Harley Davidson has a financing business that allows customers to buy now and pay later.
13. The author acknowledges that Harley Davidson has a significant amount of debt but believes it can be managed.
**About Shipping Industry and Simeon Tienpont (Sim):**
14. The author is also adding Sim (a shipping company) to their portfolio in October 2023.
15. The shipping industry is currently facing a downturn due to lower shipping prices.
16. The author believes in the long-term potential of Sim based on the expected average shipping prices.
17. They consider Sim to be undervalued and plan to buy more if prices continue to drop.
18. The author acknowledges that investing in cyclical stocks requires careful consideration of market cycles and the company's ability to survive recessions.