Investing With Conviction: Palantir, Microsoft & Amazon

Podcast: Becker Private Equity & Business Podcast
Host: Scott Becker
Episode Release Date: June 26, 2025

In this episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the importance of investing with conviction. By sharing his personal investment experiences with major companies like Palantir, Microsoft, and Amazon, Scott illustrates how a thoughtful and committed investment strategy can lead to significant successes, while impulsive decisions may result in setbacks.

1. Scott Becker’s Investment Philosophy

Scott begins by outlining his foundational investment strategy, which primarily revolves around diversification and stability. He emphasizes a balanced approach:

• Core Investments: Index funds and Treasuries provide a stable base.
• Supplementary Investments: Periodic investments in individual stocks allow for potential higher returns.

“I have a core investment strategy which is I invest in index funds, invest in Treasuries, in addition to that, periodically invest in individual stocks.” [01:15]

2. The Pitfalls of Investing Without Conviction

Scott recounts his past mistakes when he ventured into investing without strong conviction. He shares his experiences with specific Exchange-Traded Funds (ETFs) to highlight the consequences of such decisions:

• Bitcoin ETF: Scott invested in a Bitcoin ETF on a whim but sold it before it rebounded, missing out on substantial gains in the subsequent years.

  “I ended up selling the Bitcoin ETF before it rebounded like it's rebounded the last couple years.” [03:45]

• Cannabis ETF: Similarly, his investment in a cannabis ETF turned out to be disastrous, largely due to the lack of a solid investment rationale.

  “They both ended up being a disaster. One, because I invested with them on a whim.” [02:30]

These experiences underscored the importance of having a clear, thought-out reason for each investment. Without conviction, Scott found himself unable to hold onto these investments during downturns, leading to unnecessary losses.

3. Success Through Conviction: Palantir, Amazon, and Microsoft

Contrasting his earlier mistakes, Scott shares his successful investments made with strong conviction:

• Palantir: Believing in Peter Thiel’s vision and the company’s strategic advancements, Scott invested in Palantir. His conviction paid off as Palantir saw a 90% increase year-to-date and continued strong performance.

  “Palantir is up 90 year to date. It was up last year too. It's one of my best performing stocks over the last few years.” [07:20]

• Amazon and Microsoft: Scott invested in these tech giants based on their aggressive expansion in the cloud computing sector, specifically AWS and Azure. His thorough analysis and belief in their long-term growth trajectory solidified his decision.

  “Both of them were sort of doubling down and making money in the cloud business. You know, AWS and Azure at Amazon and Microsoft.” [09:10]

By investing with conviction, Scott was able to maintain his holdings through market fluctuations, reaping substantial rewards as these companies continued to thrive.

4. Lessons Learned: The Power of Conviction in Investing

Scott synthesizes his experiences to offer key insights into successful investing:

• Thoughtful Decision-Making: Investing with a clear rationale leads to better outcomes. When Scott invested in Palantir, Amazon, and Microsoft, he did so after deep analysis and understanding of their business models and future prospects.

  “I actually invested with some conviction versus on a whim and thought about deeply, went through it deeply, made a decision, made an assessment.” [12:00]

• Resilience During Downturns: Strong conviction makes investors more resilient, enabling them to hold onto promising investments even when they face temporary setbacks.

  “It makes you much more willing to hold those stocks through ups and downs.” [05:50]

• Avoiding Impulsive Decisions: Scott emphasizes the dangers of speculative investments made without thorough consideration, as evidenced by his losses with the Bitcoin and cannabis ETFs.

  “When I don't invest with conviction, it's a disaster.” [10:30]

5. Conclusion

Scott Becker wraps up the discussion by reinforcing the significance of investing with conviction. His experiences serve as a testament to how a well-considered investment approach can lead to substantial gains, while impulsive decisions often result in avoidable losses. He encourages investors to thoroughly assess their investment choices and commit to those that align with their long-term financial goals.

“When I invest with some thoughts about why I'm doing something, it is typically a much better plan and a much better... outcome in the long run.” [14:05]

Scott’s insights provide valuable guidance for both novice and seasoned investors, underscoring that conviction, informed decision-making, and patience are key components of a successful investment strategy.

Notable Quotes:

• On Investment Strategy: “I have a core investment strategy which is I invest in index funds, invest in Treasuries, in addition to that, periodically invest in individual stocks.” [01:15]

• On Bitcoin ETF Mistake: “I ended up selling the Bitcoin ETF before it rebounded like it's rebounded the last couple years.” [03:45]

• On Palantir’s Success: “Palantir is up 90 year to date. It was up last year too. It's one of my best performing stocks over the last few years.” [07:20]

• On Cloud Investments: “Both of them were sort of doubling down and making money in the cloud business. You know, AWS and Azure at Amazon and Microsoft.” [09:10]

• On Conviction in Investing: “When I don't invest with conviction, it's a disaster.” [10:30]

• On Thoughtful Investing: “I actually invested with some conviction versus on a whim and thought about deeply, went through it deeply, made a decision, made an assessment.” [12:00]

• On Long-Term Outcomes: “When I invest with some thoughts about why I'm doing something, it is typically a much better plan and a much better... outcome in the long run.” [14:05]

This episode serves as an insightful exploration into the role of conviction in successful investing, offering listeners actionable advice grounded in Scott Becker’s personal investment journey.