My $85,000 Oscar Health Investment!

Investment Strategy & Conviction

• 📈 The speaker is continuously buying Oscar Health shares as the price drops, aiming for a long-term investment of at least $100,000.
• 💡 Despite being down $4,000 on the investment, the speaker expresses excitement as lower prices allow for more share accumulation.
• 👨‍👩‍👧‍👦 A personal anecdote revealed the speaker's brother's wife and neighbor successfully use Oscar Health, reinforcing positive user experience.

Oscar Health's Financial Performance

• 🚀 Oscar Health demonstrates aggressive revenue growth, nearly doubling annually and projected to reach $13 billion this year.
• 🎯 The company is approaching consistent profitability, which the speaker believes will significantly impact Wall Street's perception.
• 💰 Oscar Health maintains a strong cash position with $3 billion in cash against a $3.5 billion market cap and $700 million in debt, providing a significant net cash buffer.

Key Risks and Market Dynamics

• ⚠️ A primary risk involves the potential discontinuation of ACA subsidies after December 2025, which could lead to increased premiums and member cancellations.
• 📉 The stock's initial drop after IPO was due to past money losses and concerns over ACA subsidy cuts, though subsidies were extended.
• 📊 Insider activity, including a CTO's options-related sale and Joshua Kushner's significant investment, is interpreted as a sign of conviction.

Long-Term Outlook & Risk Management

• ✅ The speaker views Oscar Health as a long-term investment where potential rewards currently outweigh the risks.
• 🧠 Emphasizes the importance of understanding personal risk tolerance and not panic-selling during market downturns.
• 📉 Notes that the current market environment sees many stocks declining, suggesting Oscar Health's drop is part of a broader trend.