Whitney Tilson is out with a new stock presentation.. he's calling it his $4 Inflation stock.
He claims this stock is a perfect 10/10!
There's a problem, though.. he won't reveal the name of the company unless you buy his newsletter.
Well I have good news - I'm going reveal the stock below so you don't have to buy Whitney's newsletter just to see it.
Additionally, I'm going to give you some background information on the company so you know if it's a good pick or not.
Let's get started!
Whitney Tilson's $4 Inflation Stock Summary
Stock: Ginkgo Bioworks
Stock symbol: DNA
Current price: $3.68
Whitney Tilson's $4 inflation stock is Ginkgo Bioworks - they create synthetic cells that can be used to fight disease and grow food.
This is a very controversial company.. some think it's going to be the next big thing and others think it's a complete scam of a company.
Since this presentation has launched it's been down but has been surging the last few days.
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Figuring Out Whitney Tilson's $4 Inflation Stock
Whitney Tilson is out with a stock presentation..
He's teasing a company that he calls "the $4 inflation stock."
Whitney is even calling this a perfect 10/10 stock, his first ever!
The reason for this is this particular stock is flying under the radar and thus very affordable:
After hyping his own stock picking abilities in the presentation, Whitney starts dropping hints about this company.
He claims the $4 inflation stock was created by a professor from MIT and Whitney thinks this company will lead to breakthroughs bigger than electricity, modern transportation, the internet and AI.
That's quite a company..
After this he transitions like so many stock pickers do.. Whitney evokes the name of Bill Gates, Steve Jobs and he might have even thrown in an Elon Musk reference.
Next Whitney hints this company is a "SynBio" company which combines technology and biology, just like Steve Jobs predicted.
It's around this part of the presentation Whitney drops the hint that allowed me to figure out the company he's teasing.
He references a Forbes article that asks the question "Could this be the next Apple or Microsoft."
I was able to find this Forbes article which you can read here.
In the article the company is finally revealed and it turns out to be Ginkgo Bioworks:
And just to be sure I watched the rest of presentation to look for more clues to prove this is the company.
Later they reveal Bill Gates has invested $275 million into the company and this article confirms his connections to Ginkgo Bioworks:
Additionally, Whitney claims Viking Global owns shares in the company he's teasing and this article shows Viking Global owns shares in Ginkgo Biotech.
Finally, there's a reference to Cathie Wood investing millions into this stock, which is confirmed here.
So Ginkgo Bioworks is definitely the stock being teased by Whitney.
The question now is Bioworks worth investing in?
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Is Ginkgo Bioworks A 10/10 Stock?
If you watched Whitney's presentation you probably are ready to dump your life savings into this stock.
But you shouldn't do that quite yet.
I know these presentations are persuasive but the truth is most of these teaser stock presentations end up failing.
Is this the case with Ginkgo Bioworks?
On thing you'll notice is Whitney called this a $4 stock and it's currently trading under that:
It shortly crashed all the way to about $2 but has recovered since then - it's currently at $3.68.
If you believe in Whitney's pitch now would be the perfect time to get in.
However, this is a high risk investment.
First off, their revenue is $438 million which is way below their operating costs - their operating costs are $2.88 billion.
Some believe the revenue is artificially inflated from covid as well (they were involved in covid testing).. meaning the revenue is likely to take a hit.
Additionally, a hedge fund called Scorpion Capital has been publicly shorting this stock and believes Ginkgo Bioworks is a complete scam:
You can read their entire 175 report on this company here.
Scorpion has been very successful in shorting companies they believe are fraudulent too:
In another article from MIT Technology Review points out this company hasn't made a successful product in its 13 years existence.
Basically their best talent is getting headlines and getting investments.
However, that won't lead to a successful company - you need to actually make money eventually and have products.
In the end you need to decide if this stock is worth it for you to invest in.
However, it may not hurt to sit back and watch what happens.
If this truly is the next Apple, waiting to see if they can actually create products and buy it at $15 will still lead to massive profits.
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Is Whitney Tilson Legit?
Whitney Tilson is a pretty well known guy and formerly ran a hedge fund called Kase Capital.
After experiencing success things took a turn for the worst.
In the first 11 years of the hedge fund he was up 184%, beating the market by a lot.
During the bull run from 2010 to 2017 he trailed the market, though, and in his last year was own 9%.
After that he shut down shop and decided to sell investing newsletters to retail investors.
Overall he's trailing the market again but is making money.
He's done a few of these stock presentations over the last couple years.
Here's how these stocks have performed:
Meta (Facebook) In January 2022
Whitney ran a presentation around 6 months ago teasing his 5 secret metaverse stocks.
The first he teased was Meta itself.
Here's how the stock has performed since then:
Meta crashed about 40% since Whitney recommended buying it.
Universal Music Group In January 2022
In the same presentation Whitney pitched Universal Music Group.
I guess the idea is music will be incorporated into the Metaverse and Universal will get a cut of that.
Here's how the stock has performed:
The stock has been up and down but overall it's down $2 since Whitney pitched it.
Nvidia In January 2022
Nvidia is a stock Whitney recommended in the same presentation.
Nvidia makes GPU chips that are going to power the devices that allow you to get into the metaverse.
This is another stock that's been hurting since being recommended by Whitney:
Ethereum In January 2022
Ethereum is the second biggest crypto and Whitney believes crypto will be the currency in the Metaverse.
However, Ethereum is down about 50% since being recommended:
A lot of people do believe Ethereum will be the #1 crypto one day, though.
Electric Arts In January 2022
The last stock pick from this presentation is Electronics Arts.
This is gaming studio and is pretty much the biggest in the world.
This is the only stock that's up since the presentation went live:
So 4/5 stocks are down pretty significantly.
Granted these are stocks you'll want to hold for a few years because the Metaverse hasn't really gotten going yet.
But still.. not a good start.
Waymo And Aptiv In April 2020
In 2020 Whitney ran a stock presentation teasing TaaS stocks.
TaaS stands for Transportation as a Service.
People are predicting personal car ownership will be obsolete for most people in the future and instead people will rent cars for short periods of time.
Personally I think that seems like hell!
However, it's a possibility the idea could take off.
The first stock pick, Waymo is owned by Google and they're a leader in autonomous vehicles.
So you're basically buying Google stock which is up since April 2020:
Aptiv is a leader in autonomous systems.
Here's how their stock has performed:
This pick nearly tripled in a short period of time and is now a little less than doubled.
Overall a good stock pick so far.
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What Is Empire Stock Investor?
Empire Stock Investor is the newsletter Whitney is trying to sell you in this presentation.
The goal is to hype up the company in the presentation and then only reveal the name if you buy the newsletter.
Now that you know the name of stock, Ginkgo Bioworks, you don't need to buy the newsletter unless you want to.
Overall Empire Stock Investor is a typical investing newsletter that offers the typical stuff.
You get a monthly newsletter, special reports, model portfolio, updates, etc.
However, I do think this newsletter will perform better than the typical investing newsletter.
Whitney has a track record of being able to make money.
He's started underperforming the market towards the end of his hedge fund days but he was beating the market for a while.
So buying his newsletter isn't a terrible idea.
Wrapping Things Up
Alright so that's the end of this article.
Hopefully all your questions were answered here.. you now know what Whitney's $4 inflation stock is, you've seen some info about the company (including people who don't like the stock) and you've seen some background info on Whitney.
Overall, I think Whitney is a competent stock picker and his service isn't bad either.
The good news is there's still a lot of good places to get stock picks.
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