It's easy to forget about an important point when buying stocks. Every stock you buy gives you partial ownership in a real business. I have to remind myself of this as I think about my portfolio entering a new year. At best, all I can do is guess which stocks will be the biggest winners over the next 12 months. However, I can relatively easily identify the businesses in which I have the most confidence. With that in mind, here are my three highest-conviction stocks for 2022. Image source: Getty Images. 1. Amazon.com If you haven't read Invent and Wander: The Collected Writings of Jeff Bezos , I highly recommend it. The book provides great insight into how the Amazon.com ( NASDAQ:AMZN ) founder thinks. Probably the most important takeaway is that Bezos has embedded a guiding principle into Amazon's corporate culture that it's always "Day One." In other words, the company should continually think like a startup no matter how big it gets. Even with Bezos stepping back … [Read more...] about My 3 Highest-Conviction Stocks for 2022
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If you like to buy stocks while they're down, you've got a smorgasbord of opportunities right now. Although the S&P 500 ( SNPINDEX:^GSPC ) may have logged a gain of 28% in 2021, a slew of high-profile names managed to end last year deep in the red. Simply stepping into a stock because it's cheaper than it was a year earlier, however, isn't necessarily enough of a reason. Sometimes a ticker suffers a well-deserved setback. Last year's biggest laggards may well be of that ilk, and headed for even lower lows as bad news turns worse. 2021's biggest losers Most stocks made gains in 2021, for the record. Many of the ones that didn't, however, saw some serious losses. Take Peloton ( NASDAQ:PTON ) , for instance. While it was admittedly ripe for profit-taking following a bang-up 2020, shares fell a stunning 76% last year thanks to the slow return to normalcy -- including gym visits -- crimping demand for at-home fitness equipment. A bunch of Chinese tech stocks, … [Read more...] about Are These 7 of the Worst-Performing Stocks of 2021 Ready to Skyrocket This Year?
Wall Street has a bad habit of getting caught up in short-term stories because they are exciting. That's just human nature, but it's a habit that investors need to fight. Instead, you should be focusing on long-term value as you buy companies that can differentiate themselves, not just for a year or two, but for decades to come. Here are four real estate investment trusts (REITs) that have what it takes to do just that. 1. Realty Income: Size has its benefits In 2021, Realty Income ( NYSE:O ) bought one of its largest competitors, increasing the size of its portfolio to more than 10,000 single-tenant net-lease properties. In a net lease, the tenant is responsible for most of the operating costs of the property it occupies. Over a large portfolio, this is a pretty low-risk business model in the REIT industry. The acquisition basically cemented Realty Income's place as the industry's market leader. Image source: Getty Images. Realty Income now has the heft to take on … [Read more...] about 4 No-Brainer REITs to Buy
Bilibili 's ( NASDAQ:BILI ) stock price slumped to its lowest levels this year after the Chinese tech company posted its second-quarter earnings on Thursday, Aug. 19. Its revenue rose 72% year over year to 4.46 billion yuan ($696 million), beating estimates by $33 million. Its non-GAAP net loss widened from 476 million yuan to 858 million yuan ($133 million), or $0.35 per share -- but it still beat expectations by $0.10 a share. For the third quarter, Bilibili expects its revenue to rise 58%-61% year over year. That guidance met analysts' expectations, but investors were likely waiting for a rosier forecast to justify buying the stock amid the Chinese government's crackdown on its top tech companies. Is Bilibili still worth buying as Chinese tech stocks lose their luster, or will it remain a falling knife for the foreseeable future? Image source: Getty Images. One of China's fastest-growing tech companies In the first half of 2021, Bilibili generated 29% of its … [Read more...] about Is Bilibili Stock a Buy?
Many stocks generated explosive gains in 2020, even as businesses closed down and unemployment rates climbed throughout the pandemic. Tech stocks in particular attracted lots of bulls, as they were well-insulated from those headwinds and benefited from stay-at-home trends. As a new year starts, investors are probably looking for a new batch of breakout stocks that could generate comparable returns this year. Today I'll highlight three of those potential winners: Baidu ( NASDAQ:BIDU ) , Intel ( NASDAQ:INTC ) , and Sea Limited ( NYSE:SE ) . Image source: Getty Images. 1. Baidu Baidu's stock tread water throughout most of 2020 as the Chinese search giant's ad revenue declined year over year for six straight quarters. It blamed that slowdown on macro headwinds, including the sluggish growth of the Chinese economy and the pandemic, and competition from other platforms. It previously offset those declines with the growth of its video platform iQiyi , but even … [Read more...] about 3 Breakout Stocks to Watch in 2021
Buying and holding growth stocks over long periods can deliver extraordinary returns for investors. The difficulty is in the discipline of holding investments for several years or more. It is tempting to sell a stock after it has risen 20% to 40% in less than a year, but that can remove the chance for exponential growth over several years. Here are two growth stocks long-term investors can buy in February. Image source: Getty Images. 1. Walt Disney The House of Mouse is making strides in recovering from devastations caused by the pandemic. Walt Disney ( NYSE:DIS ) temporarily locked the turnstiles at its theme parks. That was a crushing blow to a segment that generated $26 billion in revenue and $6.7 billion in operating income in 2019. In 2020 and 2021, the segment's operating income fell to less than $500 million each year. Thankfully, by the end of its fourth quarter in 2021, theme parks were reopened, and revenue in the segment doubled from 2020. During the … [Read more...] about 2 Growth Stocks to Buy in February
Wall Street delivered another winning year in 2021. The benchmark S&P 500 rocketed higher by 27%, which is more than double its average annual total return of 11% (including dividends) dating back to 1980. But if you've owned the FAANG stocks for any significant length of time, you're used to handily outpacing the broader market. The FAANG stocks are: Meta Platforms ( NASDAQ:FB ) , the parent company of Facebook (the "F" in FAANG) Apple ( NASDAQ:AAPL ) Amazon ( NASDAQ:AMZN ) Netflix ( NASDAQ:NFLX ) Alphabet ( NASDAQ:GOOG ) ( NASDAQ:GOOGL ) , the parent company of Google (the "G" in FAANG) The FAANG companies are fast-paced, profitable businesses that have exhibited sustained competitive advantages over a long period of time. Image source: Getty Images. But in 2022, only two stand out as excellent buys. Meanwhile, one popular FAANG stock should be actively avoided this year. FAANG stock No. 1 to buy: Amazon In the … [Read more...] about 2 FAANG Stocks to Buy and 1 to Avoid in 2022
Making money for shareholders has been in Warren Buffett's blood since taking over as CEO of Berkshire Hathaway ( NYSE:BRK.A ) ( NYSE:BRK.B ) in 1965. Over that time, he's led Berkshire to an average annual gain of about 20% , which translates into aggregate gains, including the year-to-date performance of the Class A shares (BRK.A), of approximately 3,500,000%. Gains like this are why the investing world pays close attention to what the Oracle of Omaha is buying and selling. Based on the latest 13F filing with the Securities and Exchange Commission, Berkshire Hathaway has stakes in 45 securities. Among these 45 holdings, five Warren Buffett stocks stand out as screaming buys in December. Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool. Amazon While I'm well aware this isn't going to win any points for originality, e-commerce kingpin Amazon ( NASDAQ:AMZN ) remains a surefire stock to own in Buffett's portfolio. Most people are … [Read more...] about 5 Warren Buffett Stocks Are Screaming Buys in December
At the Motley Fool, we have a free service called Motley Fool CAPS. In CAPS, you pick the stocks you think will beat the S&P 500 Index (also known as "the market"). In my case, 57% of my stock picks in CAPS beat the market, which means that 43% of my stock picks fail to beat the market. In essence, I am wrong 43% of the time. That's a spectacular failure rate. If I did that in school, I would get an F on my report card. And yet in CAPS I am in the top 1% of stock pickers. So that's fascinating, right? How can I be wrong so often and still crush the market? The main reason is the miracle of compound returns. In a year, one of my stronger stock picks might double or triple. That's a gain of 100% or 200%. But over time, if a stock continues to outperform, the rewards escalate. It might go up 1,000% or 10,000% or 30,000%. And what happens is that your investment in this winner (if you don't sell along the way) becomes larger and larger on a dollar basis. image source: Getty … [Read more...] about You Can Buy a Lot of Bad Stocks and Still Get Rich
Last time, I kicked off my video series about the best semiconductor stocks for 2022. If you missed the first video in the series, here are picks six through 10 . Today, I cover my top five semiconductor stocks to buy now. As I mentioned previously, I believe semiconductors are the new oil. Every secular tailwind you can think of involving disruptive innovation requires semiconductors. Consider these disruptive technologies: Data centers Cloud computing Cybersecurity Space exploration Video gaming Online gambling Augmented reality (AR) Virtual reality (VR) Mixed reality (MR) Autonomous driving Electric vehicles Genomics Esports 5G E-commerce Cryptocurrency Artificial intelligence (AI) The metaverse Big Data What do all these growth trends have in common? They all require semiconductors. So which stocks are the best to own? In today's video, I discuss my top five semiconductor stocks. Stock pick No. 1 has to be Nvidia ( NASDAQ:NVDA ) … [Read more...] about Best Semiconductor Stocks to Invest in for 2022 (Part 2 of 2)