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  • In the last video, we have talked that a crisis is nothing but merely a transfer of wealth

  • from one group to another.

  • And the stock market is probably the main method that billionaires are using to take

  • advantage of the crises.

  • Which you can do as well.

  • Let's find out what are the best companies to invest in the middle of this crisis and

  • why.

  • 1.

  • Coca Cola  If there is one company that would definitely

  • survive this crisis and even keep rising is Coca-cola.

  • In fact, the crisis isn't in any way stopping people from drink cola, especially addicts.

  • Guess who is the major investor in Coca Cola, warren buffet.

  • Why!

  • We have done an entire video on that but in short.

  • In order to find out if a company is worth investing in or not, you have to look for

  • 3 traits.

  • And based on these traits or questions, if you want to call them, you can make up your

  • mind.

  • First, the product and the business model should be as simple as possible.

  • Because it will get easier to predict the future of the company.

  • Take an example of coca-cola.

  • 10 or 15 years from now, not much is going to change, it's going to be the same coca-cola,

  • maybe with a different design or marketing, slightly different types, but it is going

  • to the old same soft drink.

  • So it is easier to predict if the company is going to stay relevant years down the road.

  • Secondly, will the customer buy the product again?

  • And why?

  • A great product is when your clients would keep coming back for it, every day or every

  • week or even every year.

  • Like bread, if you are selling bread, you would expect the exact same customers to come

  • back tomorrow or next week over and over.

  • Regardless of the circumstances.

  • Does coca-cola ticks this box?

  • Definitely!

  • Some people can't even spend the day without at least having one can.

  • And finally, how strong is the brand name!

  • People have the tendency to buy from the companies that they feel connected to.

  • Shelves are filled with so many soft drinks, but you easily recognize coca-cola and a few

  • others.

  • And that's why even though the stock price is significantly down, it will deifnelyt rise

  • back to where it was and keep increasing over time.

  • Of course, you still have to read their financial statements, but coca-cola has proven to be

  • one of the best investments ever.

  • Buffett once said that he would never ever sell his coca-cola shares.

  • 2.

  • Berkshire Hathaway B

  • The second stock that must definitely be on your list is Berkshire Hathaway.

  • Its basically a holding company that invests in other businesses, by the way, it even owns

  • entire businesses like Cees Candy.

  • So if you want to invest in all the companies that warren buffets invest, you just have

  • to buy Berkshire's stock.

  • And guess what?!

  • It has suffered tremendously in the middle of this panic.

  • And no-one understands the market better than Buffett, all the companies he has invested

  • are great stocks, and they are all will definitely rise back.

  • In fact, a huge chunk of Berkshire Hathaway's portfolio is Coca Cola, because every business

  • that Buffett invests in is similar in one way r another to coca-cola and has the three

  • main traits that we have talked about earlier.

  • Of course, the stock price is beyond what most people can afford, but they have class

  • B shares, which are quite affordable.

  • 3.

  • Delta airline/ southwest airlines

  • Since we are all advised to stay at home.

  • The transportation industry is suffering more than others.

  • Entire fleets of planes are stuck in the airports because no one would risk to fly.

  • So Delta airlines or Southwest, for example, are going down.

  • Delta airlines were down by 60 percent.

  • But it's clear that they are slightly recovering already.

  • We are not sure yet, how long the travel ban is going to continue, but I am sure sooner

  • or later, the planes will dominate the skies again.

  • Which means these stocks will get back and probably even rise further.

  • 4.

  • Airbus / Boeing

  • And because the aviation industry is suffering, the demand for planes is down or none at all,

  • which means that Boeing and Airbus are taking a strong hit.

  • Due to the virus, entire countries closed down their borders.

  • The thing is, right now, we don't know when exactly airliners are going to get back to

  • businesses, maybe within a few weeks or months or even a year, who knows.

  • however, the aerospace industry is competitive, not everyone can start manufacturing planes

  • or rockets unless you are from a different planet like Elon musk,

  • On top of that, these 2 companies receive multiple government contracts to develop even

  • military planes.

  • So they are safe for many years ahead.

  • Of course, Boeing had an issue with their latest plane 737 max, and its definitely going

  • to impact their line of business and financial statements but overall, it is a massive corporation

  • that had been in the market for decades, and at least for the next few years, it's going

  • to be leading the industry, but if you do not trust Boeing, you have the Airbus, its

  • stock has plummeted significantly as well.

  • 5.

  • Apple/Microsoft

  • When it comes to tech companies, I guess Apple and Microsoft are the best safest investments

  • one cam make.

  • Both of these companies crossed a trillion-dollar valuation and were raising gradually.

  • By the way, for the last couple of years, Buffett aggressively began investing in Apple

  • because apple has a unique business model.

  • It might sound creepy to compare apple to coca-cola, but it is, in some ways similar.

  • Apple successfully marketed the iPhone as the product you have to come back for, every

  • September.

  • I know that iPhone sales have been slowing down recently, but over the years, they had

  • successfully kept their profits rising.

  • They increased iPhone prices to over a thousand dollars, and people kept coming back.

  • Apple might not be releasing dozens of phones and laptops every year, but every product

  • they get to the market is so beautifully designed that people keep coming back for them.

  • It ticks every box of a great company.

  • So once we are done with the virus, the stock price will recover 100 percent.

  • And as far as I see it, it will probably rise even further.

  • And both of them are now down by 30 percent.

  • 6.

  • Tesla

  • I am a big fan of Tesla, but it is really difficult to make a judgment.

  • Honestly, I had never thought that the stock price could go as high as almost a thousand

  • dollars before it crashed.

  • What I don't like about Teslas stock is that it's too connected to Elon Musk, don't get

  • me wrong I am a big fan of Musk, and I think he is genius, but his actions could be unpredictable

  • therefore making the stock price unpredictable.

  • Maybe that is his strategy to raise money and continue the great work he is doing, but

  • as an investor, it's not so good.

  • however, since the stock price almost crossed a thousand dollars, maybe it will again.

  • And if it does, it's a great opportunity to invest in Tesla now, since it has suffered

  • greatly in this crisis.

  • 7.

  • JP Morgan/ Bank of America

  • Another sector that seems promising is the financial market.

  • This industry is definitely controversial, and it's difficult to be too confident in

  • it.

  • However, some financial institutions have been in the market for over a century and

  • have only grown.

  • Take an example of JP Morgan, we have an entire video on how JP Morgan became the largest

  • bank in America, and it seems like its growing.

  • So the 40 percent drop it had experienced in the last weeks is temporary, and it is

  • getting back for sure.

  • It is a perfect opportunity to double your money in a safe investment.

  • And the same goes for Bank of America, in fact, even Buffett himself significantly invested

  • in the bank of America.

  • 8.

  • S&P500

  • But if you are the type of person who is scared to invest in one specific company, I mean,

  • who knows, there is always a risk for any company to go broke, you can't be fully confident.

  • But what you can assure yourself is that the economy will get back to its knees.

  • Which means the S&P500 will get back to its prior position.

  • In fact, it is already recovering.

  • It crossed 3400 before the panic, just by getting back to its initial position, will

  • make it a worthy investment.

  • I am sure that many of you are considering to invest in companies that are working on

  • the vaccine because the entire world needs it now.

  • And the race for the vaccine is fierce.

  • However, you have to have a deep understanding of this industry in order to make a move.

  • Vaccines aren't easy to develop, they can take years and billions of dollars.

  • But the companies we have discussed are mostly likely going to recover and get back on track,

  • which presents an excellent opportunity to make aback.

  • Now, before you make any investment, you have to do your own research.

  • And make up your mind.

  • Make sure that your decision isn't solely based on a YouTube video, and you understand

  • a thing or two about the market and at least know how to analyze financial statements before

  • you throw your money.

  • So I will leave a link to a simple but really great course on skillshare about the stock

  • market.

  • If you want the stock market to be explained to you in simple and direct words, then you

  • have to watch the courses, its short, animated, and straightforward.

  • The link will be in the description; in fact, you will get 2-month free access to skillshare

  • so you can have the course completely for free if you use the link down there.

  • Thanks for watching and until next time.

In the last video, we have talked that a crisis is nothing but merely a transfer of wealth

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What Stocks To Buy To Get Rich During This Pandemic

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    Summer posted on 2020/08/21
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