Should we be afraid? Or is it the right time to buy good businesses on the cheap? Check what are the changes in my Stocks To Buy now! I started the Stocks To Buy Now series in October 2019. I have been giving my Stocks To Buy now choices each month before the first session of the month. So, let's see how I have been doing the last month.

This month brought the change of the sentiment. The average loss from my choices was 5.8%, but it is still less than the overall stock market represented by the S&P 500 index. My Stocks To Buy choices delivered 13.9% gains versus S&P 500 index went down 2.7% during five months of investment.

First, let's look at the exposure to the United States companies. Facebook went down by 4.68%, and Alphabet, which is a parent company of Google reduced its share price by 6.53%. Both companies beat the index of the S&P 500, which went down 8.41%.
Next, there are my choices from Emerging markets. CD Projekt Red went down only by 1.1%. The company is up by 14.42% during the last five months.
If you did not invest before in the shares of this company, you just had the perfect occasion to buy it on the cheap. The price did not drop as much as in January when I had been increasing my position, but it was still a significant drop.

I also listed sectors which should do well: Video games companies and online entertainment. My gaming companies did well, and on average they stayed on the same level as at the end of January. CD Projekt went down by 1.1%, Playway went up by 1.1%, and Ten Square Games went up by 9.35%. 11 Bit was the worst from this pack and reduced its share price by almost 11%.

I was right that the business of Tencent will do well because of its WeChat app, video and gaming platforms. But I thought that even though business should not be affected negatively, the correction would bring Tencent to the lower levels.

The next group were businesses without operations in China. Facebook services (Facebook, Instagram, WhatsApp) are blocked in China. Similarly, YouTube and Google search engine are blocked by the Chinese government. Their main businesses should not be affected by a potential slowdown in the Chinese economy. You have already know that Facebook and Alphabet did better than the overall stock market. Ok so now is the time for my choices as Stocks To Buy Now. Alphabet and Facebook are obvious choices for me. Their businesses have not been affected by the fear of the spread of the virus. With the big advertising spending related to the US presidential election and still not stretched valuation, these are my favourite US stocks. My previous gaming choices should do well too.

CD Projekt is expected to release Cyberpunk 2077 game in September. It is the most anticipated game of the year 2020.

11 Bit Studios is expected to release first trailers of their new production which is called now P8. It is the working name for their 8th game. I decided to add another game developer to the Stocks To Buy now for this month. Ten Square Games.

Ten Square Games is the biggest mobile games development company in Poland. On this chart, you can see its past revenue and income growth.
The company grows its income at a pace of more than 50% annually.
Its PE ratio is equal to 33.4, which does not seem to be a lot for a company with such growth.

And the last company which deserves to be among my selection for March 2020 is Apple. Apple stock went down significantly in the last month because its supply chains in China have been affected by the virus outbreak. The Californian based company warned two weeks ago that it might not be able to meet its quarterly revenue forecast due to the iPhone supply shortage as a result of Coronavirus.

But just on Friday, Tim Cook said that there is a reason for optimism as we are still in February. Apple should be fine overall. The latest correction can be a good occasion to buy stock.

Another positive news is that Apple has reopened 29 of its 42 Apple Stores in China. The business hours of these stores have been cut by 33% from 12 hours a day to eight.

The Apple CEO expressed his opinion on the situation in China. He said that China is getting the Coronavirus under control. He also added that iPhones are built everywhere in the world, not only in China.

I am not surprised that Warren Buffett loves the Apple company so much. He said last week during an interview that it is probably the best business in the world. Apple is the biggest of Berkshire's stock holdings.




Music: Leonell Cassio



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