Adnan Rafique M.D.
I use this forum to share with you my personal thoughts and experience regarding personal development and Investment. I'm not a financial expert but I do have interest and some experience in picking up stocks for my personal portfolio. Recently, my portfolio has dropped about 20-25%. Most retail investors are extremely worried and wondering if the market is going to crash even more. I don’t claim to know the future, nor do I try to time the bottom. I just try to learn from history. These declines, which people refer to as correction or crash, have always proven to be massive opportunities for those who take advantage and buy great companies on discount for long term hold. So, for the past few weeks, I have been buying good companies with great products and future demand.
How do I find good futuristic companies with great potential? I simply read books, articles, and pay attention to the surroundings and people’s behavior. I buy these stocks for a long-term hold ( 2-5 years) and I manage my stocks like I manage my business. I buy when stocks decline and sell when they have made significant gains. Remember, no one makes money in the stock market until you take profit. As in any business, greed and impatience can hurt your returns significantly. My goal is to make at least 20-25% return annually for the next several years consistently. The average historical return in the stock market is merely 8-10%, so if I double, I would be extremely lucky. You can achieve your goal if you pick solid growth companies, hold them, and take profit when it's at least 60% up. Use this cash to buy another good company or the same company when the market crashes.
Please look at my previous recommendations and pick good names that are now at discount with this market decline.
Below are the names I'm adding to my portfolio or would like to add in the future. Do your own due diligence and research before you buy these names.
Semiconductors: There is a significant shortage in semiconductor chips these days, there are some names that I really like which are benefiting from the shortage. Texas Instrument (TXN), NXP Semiconductors (NXPI), Micron Technology (MU), Applied Material (AMAT), Teradyne Inc (TER).
Genomic Sciences: This sector has been beaten down very badly but this is my favorite sector for future growth. If you can be patient, this sector can make you some serious profit. All the books and research articles about its application in the future have been very promising. With this technology, you can delete or edit gene sequencing hence cure the diseases or prevent it from happening altogether. Famous ARK invest CEO Cathy Woods has a huge conviction in this sector and she has invested heavily and continues to buy great companies during this recent decline. My favorite companies that I’m buying in this sector are Pacific Biosciences (PACB), Crispr Therapeutics (CRSP), Invitae Corporations (NVTA), and Bionano Genomics (BNGO).
Social Media stocks: My favorite long-term holds in this sector are Facebook (FB), Snapchat, and Pinterest (PINS). Digital advertising and shopping are the future. All these companies are setting up right for the future in AR and VR technological transformation.
PPG Industries, Inc (PPG): PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The company’s performance coatings segment offers coatings, solvents, adhesives, sealants, sundries, software for automotive and commercial transport/fleet repair & refurbishing, light industrial coatings, specialty coatings for signs, transparent armor, engineered materials, along with packaging & chemical management services for commercial, military, regional jet, and general aviation aircraft. It has a solid cash flow business and can be a safe recovery play.
PTC Inc (PTC): PTC Inc. operates as a software and services company in the Americas, Europe, and the Asia Pacific. The company operates in two segments: software products and professional services. It offers ThingWorx, an IIoT platform that enables customers to address the digital transformation of their operations, products, and services which is another solid and defensive play for long-term consistent growth potential.
American Tower Corporation (AMT): American Tower Corp. provides real-estate investment services while owning, operating, and developing multi-tenant communications properties. It operates through the following segments: U.S. & Canada, Asia-Pacific, Europe, Africa, and Latin America. Another solid dividend stock for people who are looking for capital preservation and income.
Stitch Fix (SFIX): Stitch Fix, Inc. is an online personal styling service that delivers personalized fixes of apparel and accessories to men, women, and kids. This is a great business model with a rapidly growing customer base. The stock price has declined significantly from a 52 week high and has a decent balance sheet and potential to grow.
Lululemon Athletica (LULU): Lululemon Athletica, Inc. engages in the designing, distributing, and retail of athletic apparel and accessories. It operates through an enormous demand and loyal customer base. A great balance sheet with cash flow and reasonable debt.
XPO Logistics (XPO): XPO Logistics, Inc. engages in the provision of supply chain solutions. It operates through the following segments: transportation and logistics. The transportation segment includes truck brokerage, expedite, intermodal, drayage, last mile, less-than-truckload, full truckload, global forwarding, and managed transportation. Recently, it has spun off its transportation business as GXO.
High Risk/High Reward Stocks:
CHPT
SPCE
NNDM
MP
SKLZ
DM
References: Thanks to YahooFinance, Investopedia, and Seeking Alpha for providing research resources.
Disclaimer:
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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.
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