By Jimmy Fuentes
Welcome to the second stocks I'm buying blog as promised. We placed only $2K in the account for me to play around with, I showcase it daily Monday - Friday when the markets close on my Snapchat and Instagram stories.
Here are my 5 positions total and my top 4 largest positions I'm holding and why
1. The Coca-Cola Company ($KO)
In 2017, The Coca-Cola Company is the 4th most valuable brand in the world, it owns Sprite, Minute Maid, Powerade, Fanta, Dasani, and other beverages, has a lot of stake in Monster energy drinks, some $8.5 bn in cash and cash equivalents as of 2016, that has increased this past year as well, with a dividend that increases every year, a safe company to invest in, and is resilient (almost) to economic downturn. Has had steady revenues year after year, and sells almost 1 billion ounce servings of their products daily, Why wouldn't it be in my portfolio? Now, it's probably the least sexist since the stock price increases at a turtles pace, but the dividend and strong brand makes up for it.
Reader mutters under breath: Gee Jimmy, what a wimp for investing in a blue-chip stock.
Hush, we'll get aggressive once there is a downturn, for now, I seek shelter in large-cap companies.
2. Visa ($V)
Again with the damn blue chips man...
I'd like to think of Visa as a mid-cap company, it only grew up to be part of the Dow component since it had NO DEBT on their balance sheet until they acquired a company, it required no capital to expand, they don't spend any of their money on equipment, plants, inventory, or technology (barely) and that's why I love this company so much. This companies frugality has made it so profitable that it's stupid/ridiculous the amount of money that Visa earns everyday, there are some 2.8 billion cards in use, is super ambitious to create a world where we don't use physical currency, but rather use apps such as apple pay and Visa checkout, and best of all, it doesn't loan cash but takes a percentage of every transaction, so it makes it immune to economic downturn. Their profits have grown and continue to grow exponentially since taken public back in 2007/2008.
This company is more sexier since it has gone up (stock price wise) about 34% YTD and has shown such growth year after year. Which makes me think that this company isn't necessarily a Dow component since the stock price increases at a growth stock rate, rather than a blue chip stock.
3. Waste Management ($WM)
Possibly the investment I thought would be great for me to hold for 10 years and possibly the investment I would hate to have in my portfolio for 10 years. (Only kidding, there isn't anything here that I dislike, if I did, I wouldn't own it.) Needless to say, people need their garbage to be thrown away in an environmentally friendly manner, what company does it any better than Waste Management. It owns other subsidiaries, genuinely cares about the environment, has had steady revenue come in year after year, uses the landfill gas and converts it into energy/electricity for the public to use, the only downfall to this company is the maintenance/price tags on the trucks that are used to haul the garbage to their landfill as well as the landfill itself. Plus, it could run into mishaps with the law if it fails to meet state/federal regulations. I don't worry too much about such mambo jumbo since I know Waste Management is going to thrive for the years that follow.
4. Square ($SQ)
Square is a financial service and a mobile payment company similar to Paypal, however, the competitive advantage Square has over other mobile payment apps is that they focus on hardware such as card processors, caviar, a company that delivers meals from high end restaurants that don't deliver (which distances themselves from their circle of competence and strays away from their market) chip readers, and contactless payment transactions. Make no mistake, Square is also on top of their software game. Square has created a Point Of Sale system (POS) similar to a cash register, Square cash, an app similar to PayPal where cash transactions can be made amongst individuals, organizations, and businesses, Square capital, a way for businesses to obtain loans through Square, and Square payroll, self-explanatory, a platform for business owners to pay their employees and handles taxes. Needless to say, this company has much more to go in order to become the first in their market place, and I have much belief that which such competitive advantages, Square is bound to be a winner and is a part of my portfolio.