Knowledge of Memetics + Stock trading account = $300+ 🥱💲
For the entire month of March, 2020, the stock market was in the sh*tter. It was a month of uncertainty and fear.
So why on earth, heaven, and hell did I spent $400 as a broke blogger on some shell company I heard about on TikTok? A company that literally had $0 in earnings, by the way.
The answer can be found in philosophy. Laugh all you want, but understanding the concept of memetics is what turned those $400 into $731.
How I Married My Philosophy with the Stock Market
The company I bought into, VectoIQ, was a shell company that literally only had one purpose, to buy another company. It didn’t produce anything valuable by itself. On March 3, it announced it had found its prey. The company it would be purchasing was to be Nikola Motors.
Nobody was actually interested in VectoIQ, but those of us who heard about the merger announcement were very excited about the “prey”.
The philosophy part has to do with what the name of the company is, by the way.
Nikola Motors, aka $NKLA, is one of the first major hydrogen vehicle companies. It has a deal with Anheuser-Busch for 800 zero-emission 18-wheelers. For context, Tesla’s deal with the beer company is only 40 trucks.
In March, I was one of only about 12,000 investors who had heard of the merger deal. The price was only about $10. By the time I bought in May, the trading price for VectoIQ was $20. The price after the merger in July reached $78 per share.
All told, I made $331 in profit.
(It takes 1.5 months for the boy to nut up 😁)
What is My Philosophy and How Did it Make Me $331?
The logic behind my willingness to buy this stock comes down to a branch of philosophy that studies memes. Yes, really.
I first read about this idea in The Game by Neil Strauss. Mystery mentions it in passing at one point while blacked out on a couch in Vegas. It’s called memetics.
Memetics describes how an idea can propagate successfully, but doesn’t necessarily imply a concept is factual.Wikipedia
Memes are much deeper and more powerful than we realize. As we casually fling cat videos everywhere, we don’t understand that we are actually engaging in a form of cultural natural selection.
What is a meme? It’s a slice of culture that is characterized by reproducing very very effectively. Memes are the cultural equivalent of rats (not casting judgement here. I’m just saying rats can make 1,250 babies in one year)
The Practical Application of Memetics
Since Tesla came on the scene, everyone who knows about the 20th century inventor Nikola Tesla is already associating his name with electric vehicles.
I knew this would mean that another company that makes a similar product to Tesla could easily go viral with a name like Nikola. Turns out, I was right.
Today, NKLA is literally called a meme stock within certain Reddit communities (ahem /r/wsb). They’re not wrong. They just don’t know exactly how right they are.
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