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In the last video, we have talked that a crisis is nothing but merely a transfer of wealth
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from one group to another.
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And the stock market is probably the main method that billionaires are using to take
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advantage of the crises.
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Which you can do as well.
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Let's find out what are the best companies to invest in the middle of this crisis and
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why.
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1.
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Coca Cola If there is one company that would definitely
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survive this crisis and even keep rising is Coca-cola.
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In fact, the crisis isn't in any way stopping people from drink cola, especially addicts.
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Guess who is the major investor in Coca Cola, warren buffet.
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Why!
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We have done an entire video on that but in short.
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In order to find out if a company is worth investing in or not, you have to look for
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3 traits.
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And based on these traits or questions, if you want to call them, you can make up your
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mind.
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First, the product and the business model should be as simple as possible.
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Because it will get easier to predict the future of the company.
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Take an example of coca-cola.
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10 or 15 years from now, not much is going to change, it's going to be the same coca-cola,
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maybe with a different design or marketing, slightly different types, but it is going
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to the old same soft drink.
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So it is easier to predict if the company is going to stay relevant years down the road.
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Secondly, will the customer buy the product again?
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And why?
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A great product is when your clients would keep coming back for it, every day or every
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week or even every year.
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Like bread, if you are selling bread, you would expect the exact same customers to come
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back tomorrow or next week over and over.
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Regardless of the circumstances.
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Does coca-cola ticks this box?
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Definitely!
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Some people can't even spend the day without at least having one can.
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And finally, how strong is the brand name!
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People have the tendency to buy from the companies that they feel connected to.
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Shelves are filled with so many soft drinks, but you easily recognize coca-cola and a few
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others.
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And that's why even though the stock price is significantly down, it will deifnelyt rise
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back to where it was and keep increasing over time.
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Of course, you still have to read their financial statements, but coca-cola has proven to be
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one of the best investments ever.
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Buffett once said that he would never ever sell his coca-cola shares.
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2.
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Berkshire Hathaway B
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The second stock that must definitely be on your list is Berkshire Hathaway.
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Its basically a holding company that invests in other businesses, by the way, it even owns
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entire businesses like Cees Candy.
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So if you want to invest in all the companies that warren buffets invest, you just have
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to buy Berkshire's stock.
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And guess what?!
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It has suffered tremendously in the middle of this panic.
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And no-one understands the market better than Buffett, all the companies he has invested
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are great stocks, and they are all will definitely rise back.
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In fact, a huge chunk of Berkshire Hathaway's portfolio is Coca Cola, because every business
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that Buffett invests in is similar in one way r another to coca-cola and has the three
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main traits that we have talked about earlier.
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Of course, the stock price is beyond what most people can afford, but they have class
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B shares, which are quite affordable.
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3.
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Delta airline/ southwest airlines
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Since we are all advised to stay at home.
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The transportation industry is suffering more than others.
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Entire fleets of planes are stuck in the airports because no one would risk to fly.
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So Delta airlines or Southwest, for example, are going down.
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Delta airlines were down by 60 percent.
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But it's clear that they are slightly recovering already.
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We are not sure yet, how long the travel ban is going to continue, but I am sure sooner
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or later, the planes will dominate the skies again.
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Which means these stocks will get back and probably even rise further.
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4.
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Airbus / Boeing
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And because the aviation industry is suffering, the demand for planes is down or none at all,
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which means that Boeing and Airbus are taking a strong hit.
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Due to the virus, entire countries closed down their borders.
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The thing is, right now, we don't know when exactly airliners are going to get back to
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businesses, maybe within a few weeks or months or even a year, who knows.
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however, the aerospace industry is competitive, not everyone can start manufacturing planes
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or rockets unless you are from a different planet like Elon musk,
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On top of that, these 2 companies receive multiple government contracts to develop even
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military planes.
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So they are safe for many years ahead.
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Of course, Boeing had an issue with their latest plane 737 max, and its definitely going
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to impact their line of business and financial statements but overall, it is a massive corporation
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that had been in the market for decades, and at least for the next few years, it's going
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to be leading the industry, but if you do not trust Boeing, you have the Airbus, its
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stock has plummeted significantly as well.
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5.
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Apple/Microsoft
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When it comes to tech companies, I guess Apple and Microsoft are the best safest investments
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one cam make.
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Both of these companies crossed a trillion-dollar valuation and were raising gradually.
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By the way, for the last couple of years, Buffett aggressively began investing in Apple
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because apple has a unique business model.
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It might sound creepy to compare apple to coca-cola, but it is, in some ways similar.
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Apple successfully marketed the iPhone as the product you have to come back for, every
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September.
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I know that iPhone sales have been slowing down recently, but over the years, they had
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successfully kept their profits rising.
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They increased iPhone prices to over a thousand dollars, and people kept coming back.
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Apple might not be releasing dozens of phones and laptops every year, but every product
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they get to the market is so beautifully designed that people keep coming back for them.
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It ticks every box of a great company.
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So once we are done with the virus, the stock price will recover 100 percent.
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And as far as I see it, it will probably rise even further.
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And both of them are now down by 30 percent.
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6.
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Tesla
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I am a big fan of Tesla, but it is really difficult to make a judgment.
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Honestly, I had never thought that the stock price could go as high as almost a thousand
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dollars before it crashed.
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What I don't like about Teslas stock is that it's too connected to Elon Musk, don't get
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me wrong I am a big fan of Musk, and I think he is genius, but his actions could be unpredictable
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therefore making the stock price unpredictable.
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Maybe that is his strategy to raise money and continue the great work he is doing, but
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as an investor, it's not so good.
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however, since the stock price almost crossed a thousand dollars, maybe it will again.
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And if it does, it's a great opportunity to invest in Tesla now, since it has suffered
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greatly in this crisis.
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7.
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JP Morgan/ Bank of America
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Another sector that seems promising is the financial market.
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This industry is definitely controversial, and it's difficult to be too confident in
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it.
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However, some financial institutions have been in the market for over a century and
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have only grown.
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Take an example of JP Morgan, we have an entire video on how JP Morgan became the largest
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bank in America, and it seems like its growing.
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So the 40 percent drop it had experienced in the last weeks is temporary, and it is
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getting back for sure.
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It is a perfect opportunity to double your money in a safe investment.
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And the same goes for Bank of America, in fact, even Buffett himself significantly invested
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in the bank of America.
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8.
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S&P500
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But if you are the type of person who is scared to invest in one specific company, I mean,
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who knows, there is always a risk for any company to go broke, you can't be fully confident.
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But what you can assure yourself is that the economy will get back to its knees.
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Which means the S&P500 will get back to its prior position.
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In fact, it is already recovering.
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It crossed 3400 before the panic, just by getting back to its initial position, will
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make it a worthy investment.
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I am sure that many of you are considering to invest in companies that are working on
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the vaccine because the entire world needs it now.
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And the race for the vaccine is fierce.
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However, you have to have a deep understanding of this industry in order to make a move.
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Vaccines aren't easy to develop, they can take years and billions of dollars.
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But the companies we have discussed are mostly likely going to recover and get back on track,
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which presents an excellent opportunity to make aback.
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Now, before you make any investment, you have to do your own research.
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And make up your mind.
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Make sure that your decision isn't solely based on a YouTube video, and you understand
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a thing or two about the market and at least know how to analyze financial statements before
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you throw your money.
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So I will leave a link to a simple but really great course on skillshare about the stock
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market.
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If you want the stock market to be explained to you in simple and direct words, then you
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have to watch the courses, its short, animated, and straightforward.
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The link will be in the description; in fact, you will get 2-month free access to skillshare
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so you can have the course completely for free if you use the link down there.
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Thanks for watching and until next time.