Adnan Rafique M.D
Entering the new year, my strategy doesn’t change much. I’m still an investor, not a trader and I don't chase hype. I like to wait for a brand new hyped IPO to settle before I consider it to buy at a reasonable valuation. Most retail investors have very short-term goals and they lose money because of impatience or buying hype stocks that have no product or income. In the recent past few months, we have seen small and mid-cap crashes but big quality names keep going up like MSFT, AAPL, Goldman Sachs, etc.
My advice to my friends and readers is to follow some kind of rules. A few of them are listed below.
1- Bring discipline and patience to your investment and take care of your portfolio as if it's your business.
2- Don’t buy crappy businesses just because these names are cheap and easy to buy.
3- Stop chasing the hype and ask yourself “Why do you want to own the stocks and what kind of business this company does?
4- Don’t pay attention to the news of doom and gloom in the stock market, get in the game. No one on this planet knows what the market will do next year.
5- Buy quality names and hold them for 3-5 years. For example, I bet you, your family, and friends have some subscriptions and services that they use every day, e.g. Spotify, Netflix, Amazon, Verizon, waste management, etc. buy the companies that you yourself use and will be using for a long time.
6- Stop listening to young YouTubers who promote pump and dump. Never buy penny stocks.
So how to prepare the list to buy for 2022. The stock market has seen high volatility recently and some of the high-quality names have pulled back significantly from 52 weeks high. If you believe that their business will thrive in the next 3-5 years, then buy those names for your portfolio. Keep your goal simple, buy great businesses at cheaper valuation and keep it for the long term. Create wealth with stocks and cash flow-producing properties like apartment buildings, storage, and single-family homes that give you passive income.
Below are some names I'm considering to own or already own in my portfolio.
Zoom: In the last two years since Covid started Zoom has become a household name. If you think this name will remain popular regardless of covid, then you should own it at the current valuation. Zoom has dropped significantly from its 52 week high.
DocuSign: DOCU is another name that has come down from highs but has changed the way we sign documents and this business is also here to stay. After missing earnings estimates, DocuSign has dropped significantly and the price looks attractive to own for a long-term hold.
Roblox: RBLX is an advanced video gaming company. Like many high-tech companies, Roblox is also generating content in Metaverse, what is metaverse? In simple words, Metaverse is an online world with 3D, virtual reality, and augmented reality avatars. This digital gaming will allow the players to participate in the game through their avatar and give them the feeling of virtual reality.
Valero: Despite the push for cleaner energy, conventional energy stocks will remain in the game for some time. With recent supply chain constraints, it's harder to move oil which results in increased demand. VLO has a good balance sheet and pays a decent dividend.
Veeva Systems Inc: VEEV is a cloud service provider for most biopharma companies. It helps big biotech and pharma establish an R&D platform and also helps bring the products to market. With the recent pullback, most analysts have a buy rating for VEEV.
American Tower corporation: AMT is one of the solid and boring stocks which pays decent dividends and has growth potential for a long period of time. American tower is primarily an owner of cellular towers with established cash flow but now AMT is getting into owning local data centers. Future is all about data and owning data centers can be a huge source of income for an already established business.
High Risk / High Reward:
I’m not a financial guru by any means, just like to do some research before buying stocks or real estate. I like to share my knowledge so others can benefit. I don’t buy very risky stocks but sometimes you need to take some risk according to your appetite and tolerance. For those who like to take risks, I have a few names you can do research on first before you buy any of the following names.
STNE
NVAX
DOCS
REKR
ATOM
Disclaimer:
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. I’m not a professional security or investment advisor, please do your own research before investing in any equity and be fully aware of the risk of losing all your money in stock market and/OR in any other investment mentioned on this website. My website has been prepared for informational and motivational purposes only and is not intended to be used as a complete source of information on any particular company. To the fullest extent of the law, I will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided on this website. IF YOU DO NOT AGREE WITH THE TERMS OF THIS DISCLAIMER, PLEASE EXIT THIS SITE IMMEDIATELY. PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.
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