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Monday, March 30, 2020

3 Stocks I Would Buy & NEVER Sell #Best Education Page #Online Earning

3 Stocks I Would Buy & NEVER Sell!


- Hello once again, guys.
Welcome back to the channel.
Hope you're having a great day so far.
So in this video today, we are going to be talking
about three stocks that I would consider
owning for the rest of my life.
In each of these three stocks we're going to discuss today
are stocks that I either currently own right now
or I owned at one point in time.
Now, a lot of people don't realize this
but most successful investors out there
are actually long term investors.
It's often not the people who are buying and selling stocks
on a consistent and frequent basis.
It's the people who buy stocks
and then simply hold on to them
and allow them to trend upward.
Now, the perfect example of this,
of a long term investor, is actually Warren Buffett.
Somebody that most of us are familiar with.
In fact, there are many stocks that Warren Buffett owns
that he has been buying shares of not just for years,
but actually for decades in some cases.
For example, Warren Buffett has been
buying American Express stock since 1964.
That is when he started buying that stock
meaning he has owned it for over 50 years.
So, maybe that's a little bit extreme here
using that as an example.
But these are three stocks that in my opinion,
I would be comfortable with holding
for the next couple of decades.
And the one other thing I wanna say,
I'm sure this goes without saying, guys.
But obviously, you have to do your own
due diligence when looking at stocks and investments.
I'm not telling you to run out there and buy these stocks.
I'm just saying these are stocks
that I will be comfortable owning
for the rest of my life.
And the other thing I wanna mention as well,
when it comes down to actually buying these stocks,
pretty much all three of these stocks
are trading at or near all time highs right now.
And I don't ever recommend buying stocks at all time highs.
So if you were actually looking to buy these stocks
after doing your own research and due diligence on them,
I would personally say wait until they go on sale
and try not to buy stocks at all time highs.
All right guys, so coming in at number one on my list here
in no particular order is none other than Amazon stock.
Now this is a stock I've been talking about
on my channel here since back in 2017.
I did a video sharing my thoughts and opinions
on Amazon stock and whether I thought
this was a stock to buy at the current prices.
Now at that point in time, Amazon stock
was trading for just $898 per share
and it's honestly crazy to think back to a time
before Amazon stock was trading over $1,000 per share.
Now in that video, I did say that Amazon stock was a buy
and that was right around a point
when I bought my first Amazon shares back then
at a price of around 950 per share
when I initially invested in Amazon.
Now as I'm sure you guys can imagine,
that stock has done exceptionally
well over the last two years.
It is now trading at $1816 per share
which is 102% return since I mentioned it
for the first time on this channel about two years ago.
Now the reason why Amazon is doing so well
right now goes a lot further than just them
having a slight competitive advantage or anything like that.
The reason why Amazon is doing so well
is because of a change in the consumer shopping habits
and we've been seeing this happen
over the last couple of years.
Very simply, people are just not interested
in buying stuff in stores anymore
and they're doing more and more shopping online.
I'm actually recording this on Black Friday
and it's crazy because I was out to the stores earlier today
and I even noticed that there's less people
even on Black Friday that are out doing shopping
because they would rather do their shopping on Cyber Monday
or just rely on the online options to do their shopping.
And so that is why I'm comfortable with having
Amazon on my list of stocks to own for life
or stock you would never sell
because that trend of people looking to do
more shopping online isn't going to change anytime soon.
In fact, it's just going to get bigger and bigger
as that whole stay at home culture becomes more popular.
Now as far as purchasing this stock,
Amazon is one of those stocks out there
that rarely goes on sale.
Often times it's either just kind of
staying in one place at one time
where it's not really moving anywhere
or it's just going up like a rocket.
But there was a sale on Amazon stock recently
if you were paying attention.
And that was back in December of 2018.
Just about one year ago.
So in December of 2018, Amazon stock
fell to 1,307 per share which would have been
an optimal entry point for this stock
if you were looking to pick it up on a dip
as it is now trading at around $1,800 per share.
Now there's a lot to actually love about Amazon too
beyond just the e-commerce business.
A lot of people look at Amazon and they think
this is just a company that delivers packages
and offers e-commerce solutions
but they actually do a lot above and beyond that.
One of the biggest things being cloud
computing through Amazon Web Services
which is kind of a weird business
that most people who don't understand Amazon
have no idea that they're actually involved with.
But Amazon is actually one of the world's largest providers
of cloud computing services out there.
They're also investing billions of dollars
into original video content for Amazon Prime Video
to compete with other streaming services out there
and for those of you who are not familiar, just so you know,
Jack Ryan season number two is officially out.
That is one of my favorite shows.
I've been binge watching that.
But that just goes to show you
the amount of money and the type of quality content
they are looking to provide and willing to provide
for Amazon Video just to compete with Netflix
and the other streaming options out there.
So in my opinion, when you buy Amazon stock,
it's almost like you get this
miniature Netflix built right in.
So if you're bullish on streaming
and you believe that's going to be the way
people are consuming media in the future,
well you get that built right in.
So not only are you getting this massive e-commerce giant,
you're also getting this massive cloud computing company
as well as this streaming company
and a little piece of all of these other businesses
that Amazon is involved with.
Now the one thing you do have to understand
as an Amazon shareholder is that Amazon
is not a company that's focused on profits.
They're not looking to make as much money as possible
or even to be as profitable as possible.
Their number one goal is to grow as fast as possible
and dominate all the markets they're involved with.
So as a result, this is not the most
profitable company out there.
And so if you look at the company
on a fundamental basis and you look
at the price to earnings ratio,
you'll always see this company trading at a high P/E ratio
because they just don't care about profitability right now.
They're looking to grow as fast and as much as possible.
Now if you're comfortable with this business model,
Amazon is the type of stock that could reward you
for years to come as an investor
but a lot of people out there are just solely
interested in investing in very profitable companies
and you're just not going to see that with Amazon.
They don't pay a dividend.
I doubt that they ever will.
They would just prefer to reinvest
those earnings back into their different businesses
and they're looking to operate
in a way that they're growing
as fast as possible in dominating these different markets
as opposed to trying to be as profitable
as possible as a company.
And it's honestly crazy to think
about how far Amazon has come.
From 1994 being just a small online book seller
to being the world's largest e-commerce company.
Investing more money into original video content
than massive companies like HBO for example.
But the most shocking statistic for me
was this one right here that came from eMarketer.
Amazon is expected to capture 50%
of all U.S. online sales in 2019.
The fact that just one company
is capturing a 50%, half of all the online sales,
honestly blows my mind.
And if that's not a reason to be invested in Amazon,
I don't know what the reason is
but if you believe that this trend
of online shopping is going to continue,
there's really no better stock out there
in my opinion to own than the one and only Amazon stock.
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All right guys, so stock number two on my list here
of stocks to own for life is none other than Apple stock.
And I'm sure it comes at no surprise
because this is one of the most talked about
stocks out there in the investing community.
Now the first time I actually mentioned
this stock here on my channel was back in April of 2017
in a video titled, The Best Stocks for Beginners,
and I still see this as a great stock out there
for beginners to invest in.
So back when I mentioned that stock,
it was trading for $142 per share
and now Apple stock trades well over $260 per share
just about two and a half years later
which is an 88% return.
So obviously, Apple has been a great stock to own
and it's been rewarding investors for many, many years.
Now I will say this, Apple stock
is at all time highs right now.
So if you're looking to start out a position in Apple stock,
I would personally not recommend
buying it at all time highs
because it is a stock that does go on sale on occasion.
Now the most recent example of this
was actually pretty recently here in May.
The stock fell to around 175 per share
over trade war affairs with China
involving the potential cost implications on the iPhone.
We saw this stock come back to a price
of 175 per share from about $210.
So for those who are paying attention
looking for an optimal entry point for Apple stock,
that was literally the perfect time to buy.
Obviously guys, hindsight is 2020.
But since May, we've seen this stock
go from about 175 a share to above $260 per share.
So if you're patient, guys.
You can pretty much buy any stock out there on sale.
It's just a matter of being patient
and waiting for the right time to buy.
And I'm not always looking to buy at the perfect point
where I'm getting it as cheap as possible
but what I try to do is I look at the stock.
I see where it usually trades as far as a price range
and if I can get it below that average price range,
then I'm certainly happy.
I'm not look to buy at the exact bottom.
But as a general rule of thumb,
one that I always tend to follow
is that anytime that Apple stock goes on sale,
that is a good time to buy Apple stock
'cause it doesn't happen very often.
Now as far as reasons to own this stock,
well, one of my favorites is the fact
that this isn't just necessarily a growth investment.
It's also an income investment
because this is a dividend payer.
So for people looking for both growth and income potential,
I see no better option out there than Apple.
Currently paying a dividend yield of 1.18%.
So not only are they offering you stellar
growth potential here with the company,
they're also paying you those quarterly dividends
and if you're looking to obviously maximize your returns,
you can simply reinvest those dividends
back into more Apple stock allowing you to earn
more dividends from your dividends
and just accelerate the growth of that,
you know, investment faster and faster.
Now this is actually kind of an interesting transition
period going on right now for Apple stock
because their numebr one revenue driver here, the iPhone,
is actually slowing down right now
in terms of the sales and the revenue.
And that is simply because of
the law of diminishing returns.
The phones that they're producing today and releasing
are honestly brilliant pieces of technology
and even phones that are a couple of years old
are still phenomenal pieces of technology
that still have a lot of use left in them.
So the incentive to actually go out there
and upgrade has become less and less each year
because there's really only so much
they can do with these phones.
Now I'm sure we won't be seeing Apple
with more revolutionary technology
coming out in the future but as it stands right now,
the incentive to upgrade to the iPhone 11
from the iPhone 10 is just not there for most people.
But the good news is despite the fact
that iPhone numbers are stagnant and not really growing,
we're seeing massive growth in a different segment
of Apple being the services side of the business.
So that is going to be where Apple
is putting a lot of their focus on
and that's going to be a massive revenue driver
for this company moving forward.
So for those who are not familiar,
Apple services is anything ranging
from the App Store to Apple Music
or their iCloud subscriptions,
Apple Pay, licensing deals, and more.
And it's basically anything that
people are using and paying Apple for
on a regular recurring basis.
So maybe it's paying whatever it is
99 cents per month for your iCloud subscription
or you're paying a set price per month
for, you know, Apple Music,
or every time you use Apple Pay,
they're earning a small percentage as a transaction fee.
It's all these small amounts of money
but the beauty of the services business
is that it's a recurring revenue model for them.
So with the iPhone, for example,
when you go out there and buy a new physical phone,
yes, they're going to make a lot of money
on that but it's a one time purchase
whereas with these services,
it's a recurring monthly subscription.
So you pay for your iCloud every single month
or you're paying for Apple Music every single month.
That becomes a predictable revenue stream for them.
And beyond that guys, the final reason
I have for owning Apple is just
the strength and value of the brand.
Apple is the world's most recognizable brand out there
and they're known for exceptional quality
and people just absolutely love this brand, myself included.
So Apple is without a doubt on my list of companies
that you could own for the rest of your life
and it's a company I will certainly
be holding onto for a very long time.
All right guys, now third and finally the last stock
on my list here of stocks to own for life is Google stock.
It was a tough decision here between Facebook and Google
but at the end of the day,
if I had to pick between the two,
I would go with Google.
Now the first time I mentioned this stock
on my channel was actually back in May of 2017.
And of the three stocks mentioned in this video,
this is the one that has underperformed
in terms of what the other two have done
because Amazon stock more than doubled,
we saw that Apple stock has almost doubled
since I mentioned it the first time.
As far as Google stock goes,
when I was talking about this stock
and when I initially bought it,
it was trading at around $950 per share
and it now trades at around $1308 per share
which is a 38% return since May of 2017
when I mentioned it here on my channel
and around the time that I had purchased some shares.
Now Google is no longer a stock that I currently own
but it's one that I will definitely be buying in the future
should there be a good buying opportunity.
Now the first thing I wanna mention about Google stock
is just to clear something up for you guys.
A lot of people run into this
when they're doing some research on this stock.
They'll find that there are actually
two different Google stocks out there.
The first one is GOOG
and the second one is GOOGL.
And they trade at slightly different share prices.
Well the reason behind that is because
one of those classes of shares has voting rights
and the other class of share has no voting rights.
So if you're out there shopping around
looking to buy some Google shares,
you're gonna want to make sure
you buy the right class of shares
based on whether or not you want
to have shares with voting rights.
And the reason behind that is because
at one point in time, every Google shareholder
got an additional share of Google
that was a nonvoting share.
And that is how you got the GOOG versus the GOOGL
shares that are currently trading out there.
So GOOG is the class of shares with no voting rights
and then GOOGL is the class of shares
that does have voting rights if you are interested.
The first major sale we saw with Google stock
was back in December of 2018, about one year ago,
and that was around the same time we saw
a sale taking place with Amazon stock as well.
And at that point in time,
Google stock fell below $1,000
per share down to $977 per share.
And honestly guys, it is very rare
to see Amazon or Google stock below $1,000 per share.
I don't think we'll ever see it happen again with Amazon
but if it does happen with Google,
it is most likely a good opportunity to buy some shares.
And then the second time we saw
a sale here was June of this year.
Earlier this year, the stock fell to $1,068 per share.
Now my reason for owning Google stock
aside from the fact that they pay
me a lot of money as a YouTube creator,
is the fact that I am very bullish
on the digital advertising space.
And if you are interested in investing in digital ads,
you know, or this whole industry as a whole,
there's basically just two companies
that control the ad space here.
Number one is Google and number one is Facebook
and as I've said, I've owned both
of these companies in the past.
As far as Google goes here,
obviously they own all of the different services
that people are using every single day
like Google Maps and Gmail.
They have the world's largest search engine.
They also own YouTube and a lot
of different companies out there
and they have so much control
over the digital advertising space.
So according to eMarketer, in 2019,
Google is expected to capture 36.2%
of all money spent on digital ads in the United States
and that statistic alone should just blow your mind.
Over 1/3 of all of the money spent on digital ads
in the United States is going to go to Google in 2019
and that is just unbelievable.
That just one company has that much control
over the digital advertising space.
Now Facebook comes in at number two
and they're expected to capture
19.2% of all of that spent.
So between those two companies,
between Google and Facebook,
they are expected to capture 55.4% of all of the money
spent on digital ads in the United States.
So literally, just two companies
capturing more than half of all of the money.
So if companies are out there
dumping money into digital ad,
the majority of that money is going to be going
into the pockets of Facebook and Google.
And the reason why I like this as a long term investment
is because these ad rates are just going
to get higher as more and more companies
adopt to using these digital ads
and I know a lot of people think
this market is saturated but there are still
so many companies and businesses out there
that are not getting with the trends
that are just now realizing,
"Hey, you know, we gotta get on social media.
"We gotta start running digital ads."
And it honestly just comes down to supply and demand here.
As more people are competing
for the same amount of advertising space,
well the ad rates are just going to get higher
and higher ad rates mean more money and more
profitability for companies like Facebook and Google.
So as we see more and more people
adopting to the digital ads,
we're just gonna see these companies
making more and more money.
And there's obviously guys, a lot of other reasons
to invest in Google stock outside of the digital ads,
that's just my main reason for being bullish
and for having this on my list
of stocks I would own for life.
But honestly guys, you can't deny the fact
that companies like Google and Facebook
just have such a brilliant business model here
where people like me and people like you
create all of the content for social media sites.
Think about Facebook for example.
The reason that people use Facebook
is because of the content that other people are sharing.
I make these YouTube videos.
Google simply puts the ads on the videos
and then we share the money.
So it's this brilliant, you know,
ecosystem they've created here
where other people are creating the content,
they're allowing you to monetize the platform
and then they're making massive amounts of money.
But anyways, guys, that is gonna wrap up this video.
Those are three stocks that I would have
on my list of stocks to own for life.
I would love to hear what you guys think down
in the comments section below.
Do you agree with these picks?
Do you disagree?
Let me know what you guys think.
If you enjoyed this video,
make sure you drop a like and subscribe
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and I hope to see you in the next video.

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