6 Stocks I’m Buying Right Now

There is no better feeling in the world than watching a stock that you bought at the bottom pop and make you a whole bunch of money while you weren't doing anything. Here comes the money.

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So the stock market once again is at all time highs. It's been doing that for like the last three years in a row. And my approach to investing when stocks are at all time highs is to make watch list, to make lists of stocks that I want to buy the next time there's a pullback or a crash. For example, the biggest buy that I made during the March 2020 meltdown was a little known company called Unum Trades under unm. They're an insurance company. They're super boring. How boring? Well, they own Colonial Penn. The insurance company that runs during the Price is Right. I mean that's how boring this company is. But I bought them at $16 a share. They went and doubled over the next year. There's just nothing more fun than buying a stock that nobody else sees at a major discount and watching your wealth go up through the roof. This is why my two part strategy to lifelong freedom is to build a business and invest the profits. You make your money in business and then you put it into things that are going to grow your wealth and, and your cash flow for years to come without you having to do anything. We've done a ton of videos on my investing strategy. Today I want to give you six stocks that are on my watch list that you might take an interest in the next time there's a pullback or a crash. Now it should be known that my approach to investing is very conservative, extremely conservative to the point where I don't really put money into something unless I'm very sure that it's going to be a winner. Now I don't get all of them right, but what I do is I look for stocks that I'm very confident in and then I wait for there to be some sort of an event. I wait for there to be bad news about the company. I wait for there to be an economic meltdown or at least a significant pullback in the share price of the stock before I go in. And that stacks the deck for me to win. Yes, I like to trade short term and I do that on the side. But my long term strategy is I have a long list of stocks that I'm waiting to come down in price and then when it hits the price that I want to pay, I strike. That's my approach. That's like value investing 101. So the stocks that I'm going to share with you today may be overpriced for right now, but we'll talk about at what price. I'm interested in buying them. Now, of course, I have to give my standard disclaimer that I'm an idiot on the Internet. You just found me. Somehow I ain't qualified to talk about this stuff. I manage my own portfolio, which probably isn't even a good thing. So don't listen to anything that I say at all. This is for entertainment purposes only. So with that, let's jump into six stocks that I'm watching for the next time that there's a correction. At the top of my watch list is Square. Square is in a position to capture much of the market share and in personal finance and also cryptocurrency over the next 10 years. And because of that, I'm very interested to see how Square continues to get further adoption from its users and run up profitability. Square Inc. Has grown from a scrappy payment startup to a $26 billion fintech giant. Square is profitable, which makes me feel good as an investor. And they're not insanely overvalued, although at the time of this video, they're just at a price outside of where I'm comfortable. The price of Square doubled from the time just before the COVID pandemic until right now. But I like Square at any price under $200. At that price, I feel comfortable putting more money into the stock because I think this is one of those rare ones that I would expect will 10x over the next 10 years. So I think Square's in a unique position to serve businesses, to serve individuals, to take advantage of developments in decentralized finance. And because of that positioning, I expect Square to go way up over the next several years. In fact, once again, this is not advice. If I had to put all of my money into just one stock, Square would definitely be a contender. I'm a buyer at any price under $200. The next stock on my watch list is JD. This is JD.com Most Americans are not familiar with JD, but you might consider it the Amazon.com of China. Now check out these numbers. As of the time of this video, JD.com has 1/3 the revenues of Amazon.com over $100 billion. That's a massive company, but its valuation is 1/17 of Amazon's valuation. Amazon's valuation is $1.7 ish trillion, whereas JD's valuation is just over $100 billion. Despite having extraordinary revenues, that's just one times their current revenues. Another interesting thing about JD is they have significant investments in autonomous vehicles. This is kind of one of their side projects. Just like Amazon.com has AWS or Amazon Prime Video, they have their hands in a lot of different pots. JD has some of that as well. And their most significant one is on autonomous vehicles, which of course we all know is going to explode over the coming decade. And they're profitable. JD trades at just 15 times their annual profits, which is undervalued in today's marketplace. So I'm bullish on them today because I think they're overvalued for the marketplace right now. And also I think they're well positioned to grow very quickly over the next decade or so. Full disclosure, JD is one of my own personal largest holdings because I believe that it's well positioned for the next decade and beyond. Number three, Redfin. If you ask any individual under 40 years old that is in the market to buy a home, chances are they'll tell you about getting lost in the Redfin vortex. That is where you just go on to see what's going on in the marketplace. But then you spend hours creating favorites and shopping for what houses are on the market. Redfin kind of owns the online real estate space in my age group. However, from a marketplace valuation perspective, Zillow has a much higher valuation and much higher revenues than Redfin. That's because Zillow has been around for longer. They have more products in the marketplace, they have bigger adoption in the real estate space. But as of right now, Zillow is five times the valuation of Redfin. As a young in the market for a house individual, I prefer Redfin's product to Zillow. And because of my own user activity and the activity of my peers, I see them using Redfin far more often than they're using Zillow. So I'm curious to see if more customers and more revenue moves over to Redfin versus Zillow. But either way, over the next 10 years, the online real estate space is going to grow. Traditional real estate brokerages and the way that we think about Realtors today will absolutely change over the next several years. We saw that happen starting during the shutdown in quarantine. The companies that were well positioned to showcase houses online were Zillow and Redfin and they exploded. Redfin just cross profitability, which is a obvious good sign for the company. And it means that they'll be able to reinvest into continuing to expand their reach because Redfin actually isn't available everywhere in the country right now. So as they increase their reach, I think they'll get more users, their profitability will go up, and they're in a good position to grow over the next 10 years. Number four, Spotify. I was reluctant to put Spotify on my watch list because I saw what happened with Pandora, and Pandora kind of got crushed once Spotify came along. But Spotify has really solidified their position in the marketplace by going after podcasts. The acquisition of Joe Rogan and the Armchair Expert podcast and other podcasts as well, is setting them up to just be the new radio. I don't know anybody under 40 years old that listens to any other music player except for Spotify. And if they continue to aggressively acquire podcasts, then they could eat into Apple podcast market share as well. What this means is that they're in a position to just be an audio media company, which seems to be what they're becoming. So in order to look at proper valuations, we have to look at other media companies that are specializing in a specific area. The only comparable company that I could even think of was Comcast, which is really the biggest leader in cable, and they're valued at $200 billion in kind of a dying industry. So Spotify has a valuation of about $50 billion, and if I had to bet, I would say that goes up significantly over the next 10 years because, well, most young people use Spotify, and that ain't going to change. Pandora is dying, cable is dying. But the use of mobile streaming, especially on audio, is growing at a torrid pace, and Spotify is in the best position to own all that market share. Now, here's one caveat with Spotify. They're not profitable yet. That makes me uncomfortable as an investor. Now, I think they'll get there and they're not gonna have any trouble getting there. But because they're not profitable, it's hard to project what they're actually worth. So Spotify, in my mind, needs to come down in price or they need to reach profitability in order for me to be comfortable investing again. I know I'm more conservative than most people. Plenty of people would look at this company and say they're well positioned to be profitable, to take over the market share. This is a good investment. I'm not there yet because I don't have the numbers to be able to justify that. So I have Spotify on my list to watch for when there's a significant pullback or another crash. Number five, Teladoc. Teladoc is a Telemedicine company where you can interface and have a doctor's appointment virtually. But they also started acquiring other similar companies. For example, you, you may have heard the podcast ads for better health where you can talk to a therapist on your phone. Well, Teladoc bought that company and they're buying other companies in the space as well. They're really the leader in telemedicine of all kinds. It's also interesting to note that Teladoc is Cathie Wood's third biggest holding. That is saying something because Cathie Wood manages 50 big billion in companies that are poised to grow over the next five years. And Teladoc is number three behind Tesla and Square. Teladoc is in the position to lead this change of everything going virtual. And I think we all know that medicine is going to get more and more virtual over the coming years because it's just inconvenient to go to the doctor. But when you don't have to go to the doctor and you can just book an appointment on your phone, it's going to get much, much easier for you to get the services that you need. And as we do this in mental health, we do this with physical health and gene sequencing and all these other technologies come on the scene. Teladoc is in a position to be able to serve the end user in the best way. So Teladoc, as of the time of this video, has come way down in price and it was enough for me to buy the stock. So the price of the stock came all the way down from like $250 all the way down to $150. And so that's when I entered the position. I started looking at it around $150. So anywhere around that price is where I like this. And number six, Palantir. Palantir is a big data company started by Peter Thiel. He's part of the PayPal mafia. Now, Palantir is a hard company to understand because people like you and me are not currently the end users. Now, Palantir is currently valued at about $50 billion. And to me, that's overpriced for a company that is not currently profitable. But they're in a space that is going to explode over the next decade, and they're in the best position to be able to take advantage of this industry absolutely exploding. I like Palantir at any price under $25. At the time of this video, they're trading at about 27. So they're on my list of if they pull back 24, 23. And they've done that several times. That's what I'm willing to add to my position. Once again, Palantir is one of Cathie Wood's biggest holdings. In fact, she said recently that she expects, or she would presume that Palantir is the fastest growing company in her portfolio. Forgive me if I'm butchering that quote. She was actually asked, are there companies that you expect to grow faster than Tesla, which historically has been her most bullish holding? And she said, I think Palantir is in a position to be able to outpace the growth of most of the other companies in the portfolio. So Palantir is an interesting one to watch because they have an amazing team, they have a foothold in the marketplace, and they're in an industry that is going to absolutely explode over the coming decade. I'm just being a little bit mindful of them because they're not yet profitable and they're trading at a $50 billion valuation, but under $25 a share. I'm going long on Palantir. I want to give a couple of honorable mentions a few stocks that didn't make the top six, but are still on my watch list for if they come down in price. First, a three way tie between Regeneron, Crispr and invitae. All three of these companies are in the genomic space. They're on the leading edge of the technologies of discovering what makes you you, what makes me me, and coming up with custom medical solutions that could reverse cancers, reverse many signs of aging, prevent a lot of diseases by editing genes, or coming up with custom solutions for people of a specific genotype. This is amazing technology. The only company out of these three that is profitable is Regeneron, and they're very profitable. And I would say they're undervalued based on where their profitability is. But they're not as much on the leading edge as Invitae or Crispr, which are coming up with brand new technologies to solve diseases that we currently have no solutions for right now. So those emerging companies, if they're successful at what they're trying to do, will be home runs. Now, I originally had Crisper on my top six list, but since I started outlining this video, they shot up 50%. So I took them off the list because now they're at a price where I'm not comfortable buying them. If they were to come back closer to $100 or $120 a share, I'll buy Crispr because I think they're in the best position to lead this trend to lead with these breakthroughs. One more company that makes the honorable mention list is Mind. Mind men trades under MNMD. Mindmend has already 10x'd in the last year. And I think that if they're successful, they'll 10x very quickly over the coming years as well. Mind Mend does psychedelic research. They're looking at the types of compounds that could change mental health. So Mind Mend right now does not have revenue. They're basically researching and testing and trying these breakthroughs. So since they don't have revenue, they're trading at about a billion dollar valuation. Should they get approval and thus be able to use some of the things that they're developing, this company gets a lot of revenue and maybe even profitable very quickly. Once again, this company has already 10x in the last few years and if they're successful, will probably 10x could theoretically 10x over the next several years. That is my opinion. As my opinion only Mind Bend is in the best position to be able to take advantage of the breakthroughs that are coming from psychedelics. And there are a lot of breakthroughs happening with psychedelics right now. We're in the wide open wild west when it comes to that research. But Mind Mend is in the position to actually make this legitimate medicine. And as a result, I'm bullish on them as a company. Since they're not profitable and have no revenue, I like them at a $3 price or under. They're trading above that right now. But they're also very volatile. So I look for them to drop below $3 before I go long. That's saying something because they were trading at $0.30 like a year and a half ago. So this is a company to watch if you're into this space. There's other stocks that did not make the list. For example, I love PayPal. If PayPal were to ever come down to a reasonable price, I would love to buy them. I love Tesla, but I think they're so overvalued. Of course, if I say that they're going to go to a $3 trillion market cap. But I just think that those two companies are overvalued right now. So there's other companies that I really like that didn't make this list. Because this watch list is the list that I'm actively watching to see when there's a correction or they come down to a more reasonable price. I am ready to strike. We have all seen how quickly the world can change in a year's time or or even less. And I think the companies that we just went through are in a very strong position to take advantage of the change that we are looking at over the next several years. I'd love to hear from you if there are other companies that you're watching to see if they come down to a reasonable price. These are mine. When there's a pullback or a correction, that's my watch list. What's on yours? Let me know in the comments and we can get a collective watch list going together. By the way, the best investment that you can make regardless of what is going on in the economy is to start your own business. The path to wealth is to first build a business and then invest the profits. A lot of people skip step one and just look for stock picks. So if you're not putting money into your own business that you're confident in, that's your first step. And if you want help with that, subscribe to the channel. Because we help entrepreneurs build businesses that they can scale and sell. And if you want to just jump in to see how we help people do that, you can check out what we do inside of our capitalism incubator. And that is where we help entrepreneurs get clear on their vision, launch profitably and build the relationships in the foundation to having a seven figure business. And you can discover more about what we do over at capitalism.com Inc. Capitalism.com Inc. Build a business first, then invest the profits. And we've had many students build businesses that were profitable and successful and even have exits and take the profits from that, put them into long term investments and now they're in a really good position. So that's my recommendation. Build a business first, then invest the profits. And if you need help with that, we can do that. I hope you enjoyed this video. Let me know what's on your watch list in the comments and I'll see you on the next one. Take care.