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Free Spreadsheet with Facebook Valuation:
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Many of you wrote to me that my Stocks To Buy Now videos are your favourite ones. Ok, I will continue with that series of videos.
March 2020 was a rough month for the overall stock market. But you are probably interested to know how my choices performed, did I beat the market again? Well, I have good news for you. Yes, my stocks beat the S&P500 index, and even two companies were in green during this month when many traders were dumping shares like crazy.
Watch the video to find out the results of my choices for March 2020 and what companies I selected for April. I will share nine companies I think are on attractive levels and six companies I would like to see lower to add them to my stock market portfolio.
Panic selling continued on the stock markets all around the world in March. The S&P500 index went down by 12.5% in March alone. The S&P500 index during slightly more than a month went down by 35.4% and then went up by 20.3% during just four trading sessions from its low in March.
But as you know, I do not bother too much with buying the overall market represented by the S&P500 index.
That is why I bought Tesla shares after their share price reduced by more than 60% from the peak. My Tesla stock is now up by 35%.
The average loss from my choices was 4.1%, but it is still less than the overall stock market represented by the S&P 500 index. S&P500 lost 12.51% in March. It was another month of beating the index. Here you can see the change of capital if the initial investment was $10,000. My Stocks To Buy choices delivered 9.2% gains versus S&P 500 index, which went down 12.9% during half a year of this series. I beat the index by 22.1%, which is a really good result for half a year investment.
First, let's look at the exposure to the United States companies. Both Facebook and Alphabet generate the majority of its revenues from advertising.
Facebook went down by 13.34%, and Alphabet, which is a parent company of Google reduced its share price by 13.24%. Last month I added Apple to the representation of the United States companies. Apple performed the best from the US companies and lost only 6.98% during this devasting month. The result of the S&P500 index was -12.51%.
At the beginning of this year, I published a video about my biggest mistakes in investing during the last year. And these included not buying Tesla stock even though I have been observing the company and its CEO closely.
And the second mistake was to sell Mastercard shares too early. But recently the share price is even lower than for what I sold my shares.
I corrected my first mistake, and I added the first shares of Tesla to my portfolio.
I will observe the Mastercard company, and if the price goes even lower, I might add it to my portfolio back again.
The list of companies with an excellent return in the long term includes Tesla. I will wait for some correction of the last growth in its price before adding to my position.
And there are also 3 Chinese names. Two are already in my portfolio: Alibaba and Tencent.
The lockdown period in China showed how resilient these companies are to the current situation.
I also started observing JD.com. JD.COM is the equivalent of Amazon with its warehouses and logistics, which is a more expensive solution than what Alibaba does. This giant company operates through third-party logistics services.
I shared with you my choices for the stocks to buy now, three stocks I am going to buy if the prices stay on the current level or go down and six names of the companies which I would like to see dropping in price more before buying or increasing my stake in them.
But remember not to listen to bloggers and vloggers. Always do your research and have conviction why you buy shares of the specific company.
Interestingly, people who wanted to start investing two months ago do not want to do it now when prices reduced by 20 – 40%. If the cost of an asset goes down, it should be considered more attractive. For some reason, people prefer to buy at the all-time high.
Example of Warren Buffett teaches us a lesson on how to take advantage of the market when it is in a panic. When more normalized conditions return, savvy investors can be left with sizable gains, and those that can repeat their earlier successes in subsequent downturns end up rich.
Let me know in the comment section below what stocks you are buying and what companies do you have on your observation list.
Music: Leonell Cassio
Thank you for watching, make sure to follow me on my blog at https://stocksandfreedom.com, which is about learning stock market investing.
Free PDF for the top 10 companies in my stock market portfolio!https://mailchi.mp/22c743110da3/10top
Please note I am not a regulated financial advisor, and so any help will be non-advisory. If you are unsure of the suitability of any investment, you should seek professional financial advice.
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