In this humorous article titled “Billionaire Of The Week: Founder Of Chewy.com,” the video explores the fascinating journey of billionaire Ryan Cohen and his incredible success with Chewy.com, an online pet supplies retailer. Starting the business in his early 20s, Cohen managed to raise a staggering one billion dollars for Chewy.com. After selling the company for a hefty sum, he made approximately 600 million dollars and invested in stocks like Apple and Wells Fargo, which saw significant returns. Cohen then took a gamble by purchasing GameStop, turning the struggling company around and raking in a whopping 1.1 billion dollars. Known for his aggressive investment strategies, he recently acquired 10% of Bed Bath & Beyond. The video also delves into the concept of finding opportunities in fallen stocks, portfolio allocations, and the psychological struggle of maintaining conviction during market downturns. With humor and wit, the discussion covers the remarkable achievements of Ryan Cohen and the exciting potential for growth in the ever-changing investment landscape.
Sam Parr (@TheSamParr) and Shaan Puri (@ShaanVP) are joined by Steph Smith (@StephSmithIO) to billionaire of the week Ryan Cohen and how he was able to make billions from a dog food business.
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I. Early Success with Chewy.com
A. Ryan Cohen and Chewy.com
Ryan Cohen, the billionaire founder of Chewy.com, had an early taste of success with his online pet supplies retailer. Despite starting the company in his early 20s, Cohen showed remarkable determination and ambition. Rather than following the traditional Silicon Valley path, he decided to base his business in Florida. This approach allowed him to think outside the box and set himself apart from the competition.
B. Starting Chewy.com in his early 20s
Starting a successful business at such a young age is no small feat, but Ryan Cohen managed to do just that. He recognized a gap in the market for convenient online shopping for pet supplies and decided to take matters into his own hands. With his entrepreneurial spirit and determination, he founded Chewy.com and embarked on an exciting journey to disrupt the pet supplies industry.
C. Raising a billion dollars for the business
Cohen’s ability to raise a billion dollars for Chewy.com speaks to his exceptional pitching and fundraising skills. This enormous sum of money allowed him to scale his business rapidly and solidify Chewy.com as a prominent player in the industry. With his vision and the support of investors, Cohen was able to transform his dream into a reality.
II. Selling Chewy.com and Making Millions
A. Selling Chewy.com for a large sum
Cohen’s savvy business acumen came to the fore when he made the strategic decision to sell Chewy.com for a considerable sum. The exact amount is approximated, but regardless, it is evident that Cohen’s entrepreneurial efforts paid off handsomely. This sale allowed him to take a step back and reflect on his accomplishments while reaping the financial rewards of his hard work.
B. Earning approximately 600 million dollars
With the sale of Chewy.com, Ryan Cohen saw his net worth skyrocket to approximately 600 million dollars. Such a windfall is the stuff of dreams for most people, but for Cohen, it was the result of his unwavering dedication and business savvy. It served as a testament to his ability to turn a startup into a multi-million dollar enterprise.
III. Investment Success
A. Investing in stocks like Apple and Wells Fargo
Ryan Cohen’s success extended beyond the world of entrepreneurship and into the realm of investing. He made shrewd decisions to invest his money in stocks such as Apple and Wells Fargo. These investments paid off handsomely, with significant returns that further solidified Cohen’s status as a savvy investor.
B. Significant returns from investments
Cohen’s investments in stocks like Apple and Wells Fargo yielded significant returns, showcasing his ability to identify lucrative opportunities in the market. These returns further bolstered his financial standing and solidified his reputation as a successful investor.
C. Purchasing GameStop and earning 1.1 billion dollars
One of Ryan Cohen’s most notable investment moves was his purchase of GameStop, a struggling company at the time. Cohen saw the potential for the company’s turnaround and made a bold move by investing 76 million dollars. His faith in GameStop paid off handsomely, with his investment turning into a staggering 1.1 billion dollars. This success further cemented Cohen’s reputation as a brilliant investor.
D. Recent purchase of 10% of Bed Bath & Beyond
Continuing his trend of investing in struggling companies, Ryan Cohen recently purchased 10% of Bed Bath & Beyond. This move demonstrates his continued belief in the potential for companies to bounce back and reinvent themselves. Cohen’s strategy aligns with his passion for buying old retailers and transforming them into thriving e-commerce businesses. This recent purchase showcases his commitment to pursuing aggressive investment strategies.
IV. Aggressive Investment Strategies
A. Known for aggressive investment strategies
Ryan Cohen has become known in the investing world for his aggressive investment strategies. He is not one to shy away from taking risks, often choosing to invest in companies that are facing significant challenges. This approach sets him apart from more conservative investors and demonstrates his willingness to seize opportunities that others may overlook.
B. Similar strategy to Tai Lopez
Cohen’s investment strategy shares similarities with that of Tai Lopez, another successful investor. Both Cohen and Lopez focus on buying struggling or undervalued companies and transforming them into profitable ventures. By following this approach, Cohen and Lopez have both seen incredible success and amassed significant wealth.
C. Buying old retailers and reinventing them for e-commerce
A notable aspect of Cohen’s investment strategy is his knack for identifying old retailers with potential for reinvention in the e-commerce space. By leveraging his understanding of the industry and capitalizing on changing consumer preferences, Cohen has successfully breathed new life into struggling companies. His ability to adapt and revitalize these businesses exemplifies his unconventional and successful investment approach.
V. Self-Made Billionaire at a Young Age
A. Ryan Cohen’s age
At just 34-35 years old, Ryan Cohen has achieved the status of a self-made billionaire. His remarkable success at such a young age is a testament to his entrepreneurial prowess and exceptional investment strategies. Cohen’s ability to build and grow businesses, as well as navigate the complex world of investing, showcases his drive and determination.
B. Self-made billionaire status
Cohen’s self-made billionaire status is a result of his hard work, perseverance, and innovative thinking. From the inception of Chewy.com to his successful investments, Cohen has proven time and time again that he has what it takes to achieve greatness in the business world. His journey serves as an inspiration to aspiring entrepreneurs and investors alike.
VI. Finding Opportunities in Falling Stocks
A. Discussion of finding opportunities in fallen stocks
Ryan Cohen has displayed a unique ability to find opportunities in stocks that have fallen significantly in value. Instead of shying away from these seemingly risky investments, Cohen sees them as opportunities for growth and revitalization. This approach sets him apart from other investors who may be hesitant to invest in companies experiencing a downturn.
B. Potential for growth in such stocks
Cohen recognizes that there is substantial potential for growth in stocks that have fallen significantly. While others may focus on the negative aspects of these stocks, Cohen looks beyond the surface and identifies opportunities for turnaround. His ability to spot potential and capitalize on it is a testament to his expertise in the investment world.
VII. Portfolio Allocations and Performance
A. Example of a portfolio allocation (90% equities, 10% bonds)
To illustrate his investment strategy, Ryan Cohen’s portfolio allocation may include a mix of 90% equities and 10% bonds. This allocation reflects his preference for higher-risk investments, such as stocks, balanced with a smaller allocation to lower-risk assets like bonds.
B. Low interest rates on bonds (~2%)
Cohen’s decision to allocate a portion of his portfolio to bonds may be influenced by low-interest rates, typically around 2%. While the returns on bonds may be relatively lower compared to other investments, they provide a level of stability and diversification to his overall portfolio.
C. Net worth decline of 25-30% from a year ago
Despite his success, Ryan Cohen’s net worth may experience fluctuations due to market conditions. For example, the past year may have seen a decline in his net worth, estimated to be around 25-30%, primarily due to market volatility and fluctuations in the value of his investments.
D. Performance of high-risk investments (Amazon stock, cryptocurrencies)
While the market may have impacted Ryan Cohen’s net worth overall, high-risk investments such as Amazon stock and cryptocurrencies have remained relatively resilient. Amazon stock, in particular, has performed well, offsetting losses in other areas. Despite the volatility of cryptocurrencies, Cohen’s investments in certain altcoins have seen significant gains, contributing positively to his portfolio performance.
VIII. Psychological Struggles during Market Downturns
A. Maintaining conviction during market downturns
Market downturns can test an investor’s conviction, and Ryan Cohen is no exception. However, his ability to maintain conviction demonstrates his belief in his investment strategies and the importance of remaining steadfast during challenging times. It is this unwavering conviction that allows him to weather stormy market conditions.
B. Avoiding negative emotions by not looking at the portfolio
One tactic that Ryan Cohen employs to avoid negative emotions during market downturns is simply not looking at his portfolio. By focusing on the bigger picture and long-term goals, he can dissociate his emotions from short-term market fluctuations. This ability to maintain a level head is crucial for successful investing.
C. Focus on earning money to supplement investments
Rather than becoming fixated on market downturns, Cohen redirects his focus and energy towards earning additional money to supplement his investments. By diversifying income streams, he ensures that his investments are not solely responsible for his financial well-being. This approach provides him with a sense of control and stability during challenging times.
IX. Buying the Dip versus Chasing Losses
A. Discussion of buying the dip
Ryan Cohen likely follows the “buy the dip” philosophy, which involves purchasing assets when their prices have significantly dropped. This strategy allows him to take advantage of undervalued opportunities and potentially reap the benefits when the market rebounds. Cohen’s ability to identify stocks with potential for recovery is a testament to his expertise and intuition.
B. Challenges of chasing losses
While buying the dip can be a successful strategy, it is important to distinguish it from chasing losses. Chasing losses involves continuously investing in declining assets with the hope that they will recover, often leading to further losses. Cohen is cautious not to fall into this trap, as it can be detrimental to long-term investment success.
A. Summary of Ryan Cohen’s success story
Ryan Cohen’s success story is a testament to his entrepreneurial spirit, investment acumen, and ability to adapt. From founding Chewy.com in his early 20s to his lucrative investments and aggressive investment strategies, Cohen has proven himself to be a force to be reckoned with. His journey serves as an inspiration to aspiring entrepreneurs and investors.
B. Lessons learned and key takeaways
From Ryan Cohen’s success story, we can glean several valuable lessons. First, age should not be a barrier to success, as Cohen started his entrepreneurial journey at a young age. Second, taking risks, even in challenging market conditions, can yield handsome rewards. Third, maintaining conviction and focusing on long-term goals are essential for weathering market downturns. Finally, finding opportunities in fallen stocks and implementing a sound investment strategy can lead to significant financial success.