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Chamath Palihapitiya Has Invested in 14 Different SPACs and PIPEs -- Which Are the Best Buys Now?

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Which are the most compelling long-term growth opportunities?

Many investors are familiar with Chamath Palihapitiya's SPACs, which have taken Virgin Galactic Holdings, Opendoor Technologies, and Clover Health (CLOV 3.91%) public, but many aren't familiar with the other SPAC deals he's backed through private finding rounds known as PIPEs. In this Fool Live video clip, recorded on March 15, contributors Matt Frankel, CFP, Brian Withers, and Dan Caplinger discuss which of the 14 SPACs and PIPEs Palihapitiya has participated in are their favorite long-term investment opportunities.

Brian Withers: There was another one that asked us, which was our favorite of all of these. Matt, do you have a favorite?

Matt Frankel: Is it the one that says which one is your favorite to invest in today?

Withers: There you go. That one.

Frankel: I'd have to say right now given, I still need to do some research about a few of the PIPE ones, but I'd say out of all the ones I know about, I'd say Latch [TS Innovation Acquisition (TSIA)] is probably my favorite to invest in today. It's like you said, it's a 10x opportunity. I think it really has a lot of runway, but the India renewable power investment is also really interesting to me and I would want to do a little more digging on that.

Withers: I will go, I guess I like Clover Health the best.

Frankel: Contrarian play.

Withers: Yeah, what it's trying to do. I've seen electronic health record companies come and go and other health platforms just fail and fizzle. The CEO to Clover Health has claimed that they're not in the business and they're trying to approach it from the outside. I think he's got a really good point there. They also have some revenue and certainly they're only in a small footprint and focusing on Medicare situations using a tremendous runway. I like SoFi [Social Capital Hedosophia Holdings V (IPOE)]. I'd want to see a few more quarters of revenue and diversifying beyond their student loan base. Berkshire Grey [Revolution Acceleration Acquisition Corp (RAAC)] is interesting too.

Caplinger: I think Matt might have sold me on Latch because I like to invest in things that I don't personally like. It works out well for me. It's worked well on Starbucks. I'm not a coffee drinker. And it's worked well on Disney, I would never go to a Disney theme park. I think it worked really well on commercial smart apartment, smart commercial property, deal like Latch, and by little over 13 bucks a share, that's not such a huge premium and I think it's got the long-term growth potential. I totally understand where the growth is going to come from. It's not like a Virgin Galactic, where it's sort of like a moonshot, but it can also come crashing down to earth. It's something that I'm pretty confident it's going to catch on, it's going to move and the question's just whether it's got the competitive edge over whatever the other players are in the space. Thank you Matt for kind of waking me up to that one. That's an interesting deal.

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Stocks Mentioned

Clover Health Investments, Corp. Stock Quote
Clover Health Investments, Corp.
$2.66 (3.91%) $0.10
The Walt Disney Company Stock Quote
The Walt Disney Company
$105.61 (2.28%) $2.35
Starbucks Corporation Stock Quote
Starbucks Corporation
$74.49 (2.77%) $2.01
Virgin Galactic Holdings, Inc. Stock Quote
Virgin Galactic Holdings, Inc.
$6.68 (3.25%) $0.21
Social Capital Hedosophia Holdings Corp. V Stock Quote
Social Capital Hedosophia Holdings Corp. V
Opendoor Technologies Inc. Stock Quote
Opendoor Technologies Inc.
$6.52 (1.56%) $0.10
TS Innovation Acquisitions Corp. Stock Quote
TS Innovation Acquisitions Corp.
Revolution Acceleration Acquisition Corp Stock Quote
Revolution Acceleration Acquisition Corp

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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