With businesses shut down in recent months, it is obvious that this is a result of the negative impact of the pandemic. This has affected many things, including the stock market. Although there might not be the rapid growth of wealth for some certain stocks, there are certain stocks that had done exceedingly well, even when everyone thought there would be a fall in its value.
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In this post, I will be revealing to you the three stocks I added to my portfolio recently. In the last few months I’ve been keeping a diary of stocks I’ve been buying and what I recommend to others. You can check out my video stock I’m buying in June and stock I’m buying in July. Of course, you can expect to see the stock I will be buying in September.
These stocks on my list have all done wonderfully well in July, and I believe they have deserved a place in my portfolio. They also have great potential which I love. Please be always reminded that this is just my recommendation. In no way are you mandated to follow this neither am I saying that other stocks are not worth it. Also, be informed that the information you will see are all current for the 1st day of august 2020. Okay, let’s begin.
For a company owned by one of the greatest and the richest stock investors in the world today, you can be sure that it’s on my portfolio. Berkshire is one of those stocks I have instinctively loved to own. I have some already, but I want my hold on the company to be great. First of all, the company is doing well. It has a market cap of 247 billion dollars. Yes, you heard correctly, the company is a big name in the American stock market. Okay now, why am I advocating for this company at this point in every investor’s life? The reason is this, first, let me clarify that we are talking of the class b stock for the company. As of August 1st, the company closed at $194. This is good, and it has come down a lot. This, I believe, is the greatest reason to buy, because the value is quite low.
There is a little risk, though, since the end of 2018, the company has had a lot of shakey periods, but they have remained strong, which is what I like in a company, the ability to stay strong even in the worst moments. Also, the company is a hub for diversification. What more can an investor want than a hub for diversification? Now let’s not even mention that you get Buffet himself as an investment manager. Excluding all the personal reasons why the stock is a great choice for me, I should say that the market acceptance of this stock is large, they received dividends from many companies, and their capital and revenue have been enticing for years. In my opinion, buy now and thank me later, no matter how bad things get you can’t lose from the company.
Cirrus Logic Inc (CRUS)
With a market cap of $400 billion and with plans to announce Q1 results come August 3rd, this means in a few days’ time, the earnings would roll in. From the recently available clues, I can confirm the earnings would be a good one. Having a close business relationship with Apple, who recently has 79 per cent revenue, they have dominated the market with their everyday demand products. Cirrus may have things going roughly if there’s a weakness in the business for Apple. On the other hand, as Apple is performing fine, you know what that means for Cirrus. As reported by Apple CEI, Tim Cook, in late July, they have a revenue of $59 billion.
They are a company I genuinely see a bright future for. First of all, they have a demanding product, then their client list is huge, and finally, there is a great future for them in a world of technology. I have them already in my portfolio, but they will remain there except a drastic change happens, which I doubt greatly. I know that the company, for now, isn’t as big as say Birkshire, but what I love is the growth potential. It just means that in five or ten years, this company is not going to run down if anything I suspect that there will be immense growth in its value, its returns and everything else.
Nordstrom Inc (JWN)
I have been closely observing this particular stock of recent and here is what I got from my observation. Being a mall for the upper/wealthy class, their stores aren’t just common to find them anywhere. Literally, they are regarded as an A-class store. They have been around for years, the company has been doing well in the stock market, but they never really hit my radar until recently. The Nordstrom Rack is more or less of a store that is for those middle class and over where you can purchase items at affordable prices.
Also, shopping through their online platform, nordstrom.com has made shopping easy for its customers. In the last few weeks, this company amassed more new customers due to their outstanding services that are being rendered during this pandemic. Talking about the recent feat Nordstrom achieved, there’s the likelihood of their profit going down by just 10 per cent. With companies reopening and businesses returning to usual, it can be scary for them. But in my own opinion, I don’t see this company going under any time soon.
They have proved themselves during this period as a company that can survive the test of time. According to the group of some selected stocks ranking on social media, they have outstandingly performed well. The market performance of the company has been so wonderful that investors are all turning to it. With a market cap of $2 billion, they are in for business. Although the stock went down of late, it is expected in the next coming years that the net profitability level will drastically rise.
I am also of the opinion that as regards the dividends stock, the dividends will return for the stock, in the end, half 2021 or in the early period of 2022. This is because the company looks to have profitability each year. When they are back to comfortability, the dividends will come back without touching the preserved capital for the rest of the year. With proof that Nordstrom is going to be profitable, this has convinced me that the dividends and profits will be great.
With a consistent payment of 37 cents of each share, you buy from the company for multiple years. This is convincing enough that the company would pay dividends again. Although it might not be the exact amount being paid before on the past payments, there’s every possibility that it will be close. As regards Nordstrom stock, under $25 for a share appears to be a good value in my view. This is more convincing for me to add more to my portfolio. I am also of the opinion that if a share has a sales value of under $20 value, it isn’t bad. Taking a look at these stocks, I had no choice but to put some money and buy them in August.
Being the owners of different companies such as Pixar, Marvel, and, lots more. Currently trading at $115 and a 52 week low of $79 and 52 weeks high of $153. Just like other companies, they experienced a huge fall but have had gradual recovery since then. Disney possesses a market cap of $208 billion and a PE of 38 per cent and a PEG ratio of 10 per cent, including a price of 2.36 per cent. The companies profitability margin stands at 6.88 per cent and a Return on Equity of 5.01 per cent, which looks healthy. The balance sheet shows total cash of $14 billion and a current ratio of 0.94 per cent. With a 2.3 rating, it shows a buy. The company owns ESPN in which the Livestream has increased its growth since the Pandemic.
If the price of these stocks remains as low as 15, then I would be a consistent buyer. Also, with the experiences I have gained in the market for years, there’s a possibility that soon, there would be a rotation and change in prices. This may be around September or October, and a lot of funds would be under force to rotate some money into different sectors.
As I said earlier, there are so many great stocks which I believe you can add to your portfolio this month and if you would like to talk about it, you can leave me a comment. I will be sure to get back to you. But if you are looking for my opinion on stocks that although might not be shaking the world with their names, they are still able to do exceedingly well, then these are what I will list out. No stock is without its risks, but these I have written out have a lot of growth waiting for them, which is what any investor is looking out for. Remember to go through my channel for more links. Also, I would love to receive your support through likes. For those of you yet to subscribe, what are you waiting for? Don’t miss out. Thanks and see you next month.
Recommended books for further reading:
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits
- The Warren Buffett Way
- How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
- Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
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