Warren Buffett, the 4th richest American (worth $100 Billion) recommends investing in an S&P 500 Index Fund. Over 20% of the S&P 500 is made up of 5 stocks:
- 7.3% Apple AAPL
- 5.7% Microsoft MSFT
- 3.6% Google GOOGL
- 3.3% Amazon AMZN
- 2.5% Tesla TSLA
Also, the S&P 500 is America's largest companies, and returned ~11% each year on average, over the last 96 years. (Since 1926 the S&P 500 has increased about 1,300,000%). Let’s also look at other popular holdings:
- 1%- NVidia NVDA
- 1% JPMorgan JPM
- 1% Mastercard MA
- 1% Costco COST
- 1% Walmart WMT
- 1% Disney DIS
Now let's also talk about these:
Apple $AAPL:
- Apple iCar & Augmented Reality products in the pipeline
- Apple Pay is #1 mobile payment system in US
- 1.5 billion+ active devices in ecosystem, with devices to be replaced every few year
Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow
Microsoft $MSFT:
- Dominance in cloud computing space
- Azure is growing faster than Amazon's AWS
- Azure has a large and constantly growing market share for the Cloud Computing market
Data shows great:
- Profitability
- Upside Breakout
- Social Sentiment
- Institutional Flow
Alphabet/ Google $GOOG $GOOGL:
- MOAT on the online ad market
- Leader in quantum computing
- Strong balance sheet
- Healthy cash flow
Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow
Amazon $AMZN:
- Largest in cloud infrastructure space
- Health care services growth (health care spending accounts for ~20% of the economy)
Data shows great:
- Upside Breakout
- Social Sentiment
- Institutional Flow
Tesla $TSLA:
- Low battery costs, self-designed A.I. chips & data it has collected from billions of miles of real-world driving from its customers gives #TSLA a huge competitive advantage other EV's
Data shows great:
- Growth
- Profitability
- Upside Breakout
- Institutional Flow
Nvidia $NVDA:
- Makes the best graphics chips
- Huge player in artificial intelligence, machine learning, metaverse, digital biology, robotics, autonomous vehicles, cloud computing space, IoT & 6G space
Data shows great:
- Dark Pools
- Upside Breakout
- Institutional Flow
JPMorgan $JPM:
- America's biggest credit card issuer
- Higher interest rates is a positive
- Friendlier banking regulations is a positive
- Around half of all US households do business with Chase
Data shows great:
- Profitability
- Institutional Flow
Mastercard $MA:
- Very well managed company
- Increasing use of its networks due to unrelenting sector growth in e-commerce & mobile payments (electronic transactions will continue to grow tenfold)
Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow
Costco $COST:
- One of the strongest balance sheets
- Consistently ahead of earnings estimates
- One of the most loyal customer bases (90%+ membership renewal rate in North America)
Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow
Walmart $WMT:
- 47-years of dividend hikes
- Only American retailer that can complete with Amazon
- Many retailers won't survive this recession, and their losses will be Walmart's gain
Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow
- Options sentiment
Disney $DIS:
- Disney has a lot more great content in their pipeline
- Pandemic has ended and travel restrictions are being lifted + holiday & travel season may be the busiest season for Disney parks
Data shows great:
- Upside Breakout
- Institutional Flow
*Data and ratings are from Prospero.AI
1. Growth Rating- How likely a company is to grow in revenue and/or size in the next 1-2 years
2. Profitability Rating- How likely a company is to be profitable in the next few years
3. Upside Breakout - Higher scores indicate a larger chance of a sharp move upwards in price, any time within the next 1-2 years
4. Net Institutional Flow- Tracks if institutions are buying up or selling off a stock, or options
5. Net Options Sentiment- Provides information on how long or short the market is on short duration options
6. Net Social Sentiment- Gauges positive & negative sentiment from social media, as well as the difference between them
- Dark Pools are exchanges that institutions use to make trades without immediately moving the markets
- Net Institutional Flow is tracked using 13F & 13G SEC filings
-Profitability is based on current financials & estimates
- Growth is based on forecasted financials
Disclosure: The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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