Buy these stocks hand over fist
Aug 10, 2021Good morning!
Buckle up. Markets are down this morning as supply chain fears rise and oil prices fall on rising Covid-19 cases.
Here’s my playbook.
1 – This stock is an annuity in disguise
Famed epidemiologist Larry Brilliant told CNBC that Covid-19 could be “the most contagious virus” ever and that the world is nowhere near the end of the pandemic.
I agree.
Less than 15% of the world has been vaccinated and there are still more than 100 countries where inoculation stands at less than 5%.
Thankfully, mRNA vaccines like the one made by Pfizer/BioNTech continue to hold up well against the delta variant. Brilliant also mentioned Johnson & Johnson but I’m not a fan.
I’d rather own Pfizer and do.
2 – The one restaurant stock that can beat inflation
People are beginning to sour on restaurant stocks because of supply chain pressure and the rising cost of labour. Darden, for example, just got a downgrade from Evercore ISI.
McDonald’s is getting caught in the fracas but is the one I recommend.
The company is making significant investments in technology that boost bottom line profits, raise order accuracy, and increase sales. It’s off the 52-week high and, frankly, I’m lovin’ it.
Watch my take with Stuart Varney moments ago
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Buy these stocks hand over fist to protect against the Fed’s next move
I just named two stocks in the August One Bar Ahead™ that could play a huge role in protecting your portfolio from the ravages of inflation. Both are classic “low-beta” choices. If you’ve got this covered and know why that matters right now, fabulous! If not, I’d like to help. Get the stocks
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3 - Buffett’s portfolio is concentrated in just 4 stocks – here’s what they are
Billionaire Warren Buffett is widely believed to own a diversified portfolio, so why is it that 70% of Berkshire Hathaway’s holdings are concentrated in only 4 stocks (AAPL, BAC, AXP, KO)?
Buffett knows – like us - that the real path to profits is to own the “best” and avoid the rest.
It’s a tough pill to swallow for millions of investors because they’ve been taught for a decade to spread their money around. That worked for a long time but times have changed.
Diversification is busted and anybody “buying the indices” is investing in an outdated economy, busted politics, and antiquated thinking.
Playing to win is a very different proposition from playing not to lose.
That’s why Buffett does it and why we do it in One Bar Ahead™.
4 – Musk on Man, Tesla upgraded
I have to imagine that Elon Musk is smiling ear to ear. Starlink is setting up a ground station on the Isle of Man. Located in the Irish Sea, it’s perfect. Adding a station there gives a great horizon scan with nothing but ocean on all sides. If you want shares, I suggest you move now; he’s said that long-time Tesla shareowners will likely receive first dibs when Starlink goes public.
Speaking of which, Jeffries just upgraded Tesla to “buy.” Analyst Phillippe Houchois slapped a target of $850 on shares saying that the company continues to prove a “leader” and an “innovator” in the mass production EV and battery markets.
Ya think??!!
Still, a great move supporting what we’ve talked about (literally) for years.
My target remains $1,000 a share.
5 – This name is still cheap and still poised to double
Palantir reports this week and I expect sales numbers to be strong but am having a hard time drawing a bead on expenses. I expect ‘em to be high as the company grows. Meanwhile the stock remains range bound which is great by me because it means anybody interested in upside can scoop up shares before the stock accelerates.
Bottom Line
Down markets are not something to fear if you’ve done your homework ahead of time.
Why?
Stocks that get hit the hardest often bounce back fastest.
Never forget that great companies making great products produce great results!
You got this – I promise!
Keith
