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I'd love to invest in stocks after listening to a guy on a podcast talk about the importance of investing and how he made over $300k in few months of investing into stocks from $175k initial capital, somehow this video has helped shed light on some things but I'm confused about the current market volatility I'm new to this and I'm open to ideas.
It's difficult to beat the market as an ordinary investor, you don't have access to information that professionals have. So it's just better if you invest with a professional who knows how things work better.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Interesting! been looking to switch to an advisor for a while now but the fear of losing funds held me back, please any help pointing me to who your advisor is and how to reach them?
I recently made further purchases. Saving for a market slump is also a bad idea. There are different perspectives on recessions and depressions; we cannot always expect significant rewards; and taking risks is preferable to doing nothing. The bottom line is that by diversifying your portfolio and making sensible judgments, you will accomplish exceptional outcomes. In just 5 months, my portfolio's raw earnings increased by $608k.
Despite my conviction in your direction, my recent stock purchases, and the fact that I am an AMC shareholder, I have not been able to amass anything. I had been in debt for far too long before the collapse. What are the steps required in investing?
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my advisr are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
great gains there! mind sharing details of your advisor pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help build wealth over time
She goes by ‘’VIVIAN CAROL GIOIA’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
thanks for the breakdown, I read that Nvidia provides tech for crypto mining services/blockchain transactions. Could the current crypto pump be attributed to Nvidia’s great earnings and should I hold some crypto as well, cos tbh I’m having FOMO with the current crypto price at 64k.
It’s going to be a wild year for these sectors, so you should def. invest in crypto. 60% of my portfolio is spread across tech stocks, crypto and Crypto/Gold ETFs.
Ys, my asset manager advised I spread further into mutual funds and crypto Etf and boy am I glad I did. The whole idea is: Don’t get too greedy and also to exit at the right time, so generally I do find having an adviser very helpful, because what Avg. Joe really has time to watch and comprehensively analyse the market.
What's the best approach to capitalize on the current market conditions? I'm deliberating on whether to diversify my $400k stocks portfolio. How should I reallocate stocks in my portfolio to secure my future
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
Joseph, PLEASE try analyzing companies using the method you shared in your video “Why I Love Stocks” I found your logic of comparing the risk free rate to a company’s free cash flow margin and projecting out 5 years using the free cash flow per share growth rate a super helpful exercise! I’ve been using it myself and would love to see it demonstrated in a future video. I bet others would love to see you demonstrate this technique too! Keep up the amazing content, Joe! 🙏
A tool i'm currently working on in Qualtrim is called "scenarios" and it does analysis on stocks exactly like that video. You add in some assumptions to create a 5 year financial projection for a stock. Then you look at the starting yield, what you think the cash flow will be in 5 years, and what you think the multiple will be for the stock (the appropriate yield), from that it calculates a rate of return over the 5 years. It's in beta right now and we have a number of people using it. But I want to get it out of beta and finished and I'll start doing some analysis on stocks showing people more in-depth about my assumptions on cash flows and rate of return for a stock.
Joseph; @7:57 I heard Terry Smith whisper in my ear “CostCo earnings are growing much faster than the S&P” Half way through your Costco analysis, I thought I was listening to Charlie Munger 😊😊😊. I tell you I am hearing voices Question: How about using stop loss orders to protect your gains in COST & CMG? Finally, take a peak at the portfolio of Cantillion Capital. It’s loaded with compounding machines.
Great Analasys, what do you think about VICI Properties right now, or REITS at all they are pretty exiting valued right now, whats your opinion? Thanks
Successful people don't become that way overnight. What most people see as a glance of wealth, a great career, and purpose is the result of hard work and hustle over time. I pray that anyone who is reading this will be successful in life,.,..
Eli Lilly isnt overvalued imo, weight loss will be bigger than AI, however, Novo Nordisk would be a better run in the long run. Only NVO and Lilly have the patent for weight loss until 2031, so thats why the high PE. Its not a new drug, what they are developing is just a pill form, instead of a shot, and they are on phase 3 already, so should come out in the next 2 years. For novo, they are in phase 1, but have already 3 drugs in the market, including a pill form.
Joseph you’re my favourite investing channel. Your long-term outlook and style is commendable. However how can you use p/e for a company that is just profitable? I can completely understand overvaluation arguments for Palantir but using p/e makes no sense.
I haven't bought COST in a while, but I'm not selling any time soon. I use the 250 ema as one of my metrics. COST is at 19% above right now. I did sell NVDA when it was at 92% above and it's down to 85% already! The last time it came even close to that was 78% above, then subsequently came down to 2% above in less than 2 years. I typically try to buy at less than 15% below and try to hold forever till it gets so ridiculous I can't help myself. Sold NVDA at a 234% gain in less than 3 years!
Hello Joseph. Have you considered some hedge strategies that generate additional income? For example, covered calls on those stocks you’re currently long but think are a bit overvalued.
@@kylen6430 No I imagine it will fluctuate and go up but will become more stable and a lesser difference over time. but when/where that happens is the unknown.
$PLTR is a definitely one of the most difficult stocks to establish valuation in recent memory. Lots of cloak and dagger mostly because lots of government contracts and companies with the most sensitive data. According to many of the analysts and industry pundits, PLTR is one of very few companies, if not the only company that these particular organizations will trust with their most sensitive data.
Joseph you have some great content. I love watching it while walking on the treadmill. Keep up the good work! Would love to see a video on stocks with greatest return potential over the next 5-10 years. Tech or not doesn’t matter to me!
Well sooner than later there will a market correction! That’s why I have limited the number of stocks I currently own! If they have a price dip probably I will buy more.
PE ratio is just useless metric, you have to ask the right question - why some of these companies have such a PE ratio (e.g. PEG ratio might give a clue), because there might be a reason why e.g. PLTR is trading at the current valuation.
I agree that PEG (FWD) is a good metric to normalize the PE ratio by their EPS growth. But even when looking PEG (FWD), Costco is trading at 5.04, which is insanely overvalued. For context, AAPL is at 2.79, SPGI is at 2.53, MSFT is at 2.43, V is at 2.15, etc.
As always Joseph, very impressive video. I like your view on dillution with a high price over intr value, than buy back when cheaper 👍 i did not think about that before.
I always strive to maximize the rate of return for my portfolio. I do not do covered call options because by setting up a covered call you're sacrificing potential upside in the stock until the option expires. I have an extremely bullish stance on each of my positions and do not believe it will provide better returns to exchange potential upside for cash.
I enjoy the commentary and analysis. Don't always agree, but that's the point. Thinking and being open to conversation. I am older 68, but still try and balance growth, dividend stocks, cash manipulation and taxation exposure!! Keeps the old grey matter going!!
Wow, I loved your take on the differing risks for each of these 'overvalued' stocks! Super informative. Dilution isn't always bad?! That's definitely counterintuitive.
Why is wing stop forward PE over 100?? Amzn and nvda are both mid 30s. Did they add cocaine to their sauce? Edit: 40:30 no cocaine just “less crappy” than BDubs. 🤷🏼♂️
There’s a new WingStop in Eugene, OR and everyone was excited to try it. Everyone I heard from trying from the new store said they hated it due to the poor service and most people I talked to didn’t like the wings. Our market here is blessed with local wing restaurants like Hot Mama’s, Chicken Bonz, and Toxic Wings. Thanks for coming into town WingStop but I’ll happily go to the competition. Edit: The poor service was likely due to all the new employees being high school kids who were probably still getting used to the ropes. So we’ll see how it does in the long run.
Growth is tricky: as an example, PLTR may be as "overvalued" as NVDA in the 300s... As you surely know, when a company turns profitable, EPS growth can be explosive. Even more if it's in a secular trend. I will hold; any dip below 20 I will consider adding up to the position. Thanks and have a good day.
Yup. Revenue growing 20% yoy. NI growing 200% yoy. And it's just ramping up. 3 billion in cash, no debt. If PLTR keeps that rate, it's actually undervalued right now. Incomparable to something like a chipotle unless someone expects burrito sales to triple tomorrow. At the same time, Palantir could actually realistically double or triple it's revenue in 1 year with just a handful of the size of contracts that they're currently getting.
I only disagree with Chipotle - there is something wrong with their staff. No matter where I travel in the country, Chipotle employee hate their jobs, have a bad attitude, and don't treat customers well.
Some risk takers like to try and ride the big waves like brave surfers. And sometimes they might ride out a ways and then suddenly make an impressive wipe out too.
Just continuing to do a slow dollar cost average into my portfolio whilst slowly building a cash pile / investing in 1 or 2 that havent moved as much this year. I dont want to be out the market if it continues to move up but I also want some gunpowder for if it goes down.
I have a question as someone who is still learning about stock markets and just general financing but I do understand math to a solid degree. Are stocks still over valued even at a time where there is inflation? Like is it possible that stocks go up with the idea of inflation? Or is it strictly based off of fundamentals and that’s it?
If you've been on tiktok you'd know that influencers and food reviewers go crazy on wingstop - the chicken looks delicious and is marketed ryt on those platforms. Just my 2 cents ..
Nice job on this Joseph, and very insightful charts to compare whether the P/Es are supportable. Also, enjoyed the rather humorous clip at the end to relative to the 100+ P/E for Wing Stop-Ha Ha!
I read that Nvidia provides tech for crypto mining services/blockchain transactions. Could the current crypto pump be attributed to Nvidia’s great earnings and should I hold some crypto as well, cos tbh I’m having FOMO with the current crypto price at 72k
In the Story Fund portfolio I’ve added a total of $2,000 so far this year. So not much. In the passive income account I routinely add money. Added money is not counted in any way towards gains. Only capital appreciation and dividends are gains.
I'd rather own CMG than the companies listed above its the first thing when I actually enjoyed eating there on a regular basis and didn't mind anything really about it. I have memories eating there with my dad. Great food!
At 37:10 You're making the case that dilution is good when stock prices are high. This is only true if the capital that is raised is actually invested at a higher return on capital than the negative returns that dilution causes. It's not a given that companies use the money wisely. In fact, a lot of companies dilute the shares outstanding to finance value-destructive acquisitions. A double whammy!
Claiming Wingstop has a weak moat is like saying Texas Roadhouse has a weak moat. There are many alternatives to both (think Outback Steakhouse instead of $TXRH). Both are strong businesses because they extreme demand and offer quality food that consumers see as a good value. This is the reason why both jave such busy locations. There is a reason why most wingstops are open for 12 hours or more each day, it's because fulfill a lot of orders.
