Introducing The Compounders' Cup 2021
A World Cup style tournament to pick the top stock of 2021
Youtube
Before I dive into the tournament, I want to let you know that I just started a Youtube channel and have posted a video explaining the tournament format and revealing the 32 stocks. I’d really appreciate it if you gave it watch and let me know what you think. Thanks!
The Tournament
After the completion of the previous tournament, MultiBagger Madness, many of you expressed interest in me putting on another tournament. One of biggest requests was that the next tournament be focused on a shorter time-frame.
MultiBagger Madness asked which stock will have the greatest returns over 10 years. I set up the previous tournament for the long-term because it is how I invest and how I think most people should invest. That being said, I understand the interest in shorter time-frames.
For this tournament, The Compounders’ Cup, voters will choose the stock that they think will have the best returns in 2021.
Is this an absurd exercise?
Likely.
The odds of picking the best stock out of an entire field are slim. The process of the tournament, however, I think is valuable. First, it helps us learn which stocks FinTwit is most excited about currently. Second, as the tournament progresses through the rounds, we see FinTwit’s collective portfolio at various levels of concentration.
I do not invest based on belief in a single stock, and I think that it is foolhardy for most people to do so. Nevertheless, tournaments like this provide a fun way to make some predictions and track our performance. So join in on the fun, but always remember to do your own research and not get unduly influenced by the results of this tournament.
Speaking of tracking performance, as of the close of the market on Friday (12/4/20), the MultiBagger Madness returns were:
The Format
The Compounders’ Cup will follow a format similar to the FIFA World Cup. Results will be determined based on Twitter polls. Follow me @IanGrayLive to track the tournament and vote.
It will start with eight groups of four stocks. Each group will have its own poll and the top two finishers from each group will move on to the round of 16.
Once we get to the round of 16, matchups will be head-to-head. The stock collecting the highest vote total in each matchup will continue in the tournament until we have one champion.
I do want to point out that because of the limited nature of this tournament field (only 32 stocks!) many deserving stocks were not included. Hopefully, even if your favorite stock is not included, you still see some that you are interested in.
If you are upset about a company being snubbed, tweet at me @IanGrayLive and let me know just how bad I messed up. The committee loves hate mail.
The Schedule:
Group Stage: December 7-10
Round of 16: December 14-17
Quarter Finals: December 21-24
Semi Finals: December 28-29
Final: December 30-31
The tournament will conclude just in time to begin tracking stocks for 2021!
The Matchups
Now, without further adieu, I present the 2021 Compounders’ Cup Groups:
Advertising Innovators
The Trade Desk (TTD)
Digital Turbine (APPS)
Acuity Ads (ACUIF)
Pinterest (PINS)
International E-Commerce
Ozon Holdings (OZON)
Jumia Technologies (JMIA)
Sea Limited (SE)
MercadoLibre (MELI)
Modern Healthcare
Nano-X Imaging (NNOX)
Butterfly Network (LGVW) - SPAC
Teladoc Health (TDOC)
Ontrak (OTRK)
Let’s Have Some Fun
Roku (ROKU)
Skillz (FEAC) - SPAC
Roblox (RBLX) - IPO imminent
Tesla (TSLA)
Financial Freedom
Fiverr (FVRR)
Square (SQ)
Shopify (SHOP)
Lightspeed (LSPD)
New Age of Real Estate
Opendoor (IPOB) - SPAC
Peleton (PTON)
Zoom Video (ZM)
Fathom Holdings (FTHM)
Cloud Support
Okta (OKTA)
Crowdstrike (CRWD)
Cloudflare (NET)
Fastly (FSLY)
The Recovery
Southwest Airlines (LUV)
Delta Airlines (DAL)
Marriott International (MAR)
Royal Caribbean Cruises (RCL)
Your Participation
MultiBagger Madness was a blast to run, and that was due to your involvement! Thank you so much for making this so exciting and such a fun experience. I am looking forward to learning more about many of these stocks and interacting with some of their most fervent fans.
If you would like to make a prediction, both about the top stock for 2021 and which stock will win this tournament, fill out this form (it will take less than a minute). I will be shouting out anyone who correctly picks the champion!