This is an insightful video that I want to share with you, especially if you are pondering which industry or company to invest in. For friends who are reading this and don’t understand Chinese or do not have time to watch this video. I will give a quick summary.
Basically, Ms. Sunny is analyzing 2 stocks with very different fortunes, Peloton and Nvidia. Peloton Interactive is an exercise equipment company whose main products are internet-connected stationary bicycles and treadmills that enable monthly subscribers to remotely participate in classes via streaming media. Nvidia is a company that designs graphics processing units for the gaming and professional markets, as well as chip units for the mobile computing and automotive market.
Peloton’s share price dropped 32% after earnings whereas Nvidia has risen almost 50% in a month. These 2 companies are offering products which are of different nature. The first company offers products that require consumers to dedicate hard work and discipline to their lifestyle to use the product, which is anti-human nature or desires. The other company offers products that provide consumers with enjoyment, relaxation or escapism, and such products are pro-human nature or desires.
In the long run, Ms. Sunny believes that companies that offer products that are pro-human nature or desires (possibly with the risk of addiction), such as fast food (MacDonalds), gaming (Tencent, Nvidia), social media platforms (Tik Tok) are likely to rake in profits much more than companies that offer products that are anti-human desires and require hard work and discipline in order to achieve, such as fitness (Peloton), healthy living (Beyond Meat).