The most common question I get is what stocks should I buy? To me this is very easy! The stocks to buy are solid growth companies that fit into my three criteria of stock picking.
Buy Stocks of Companies With Good Products People Love and a Strong Brand - I first started trading Apple (AAPL) back in 2004 around $5 per share, split adjusted. The iPod had just hit the shelves and was selling like hot cakes. It was the most popular technology product during Christmas of 2004 and I just knew there was something magical about this company. Fast forward to the iPhone, customers would wait in line for the iPhone, sometimes camping out in tents overnight. You want to keep your eye out for companies that have a must have product or service, strong brand, and then continue to buy the stock over time. The mistakes I learned by not holding Apple (AAPL) over the years are helping my hold Tesla (TSLA). Rather than sell, I continue to buy Tesla stock on major corrections because I believe one day it will be a multi-trillion dollar company. In my opinion, it will be better than Apple (AAPL).
Outstanding CEO and Founder of the Company Still Running Day to Day Operations - Whether its Elon Musk running Tesla (TSLA), or Ethan Brown running Beyond Meat (BYND), these founders hold a big stake in the company are in charge. They have the best intentions of the company and this will benefit shareholders over the long term. We are not only investing in the company, we are investing in the founder and CEO who is steering the ship and has full control. They still have drive to crush competition and be the best in their industry!
Buy Stocks That Have a Large TAM - When figuring out what stocks to invest in, I think about total addressable market. Vehicles have a massive TAM and when you combine that with the shift to electric vehicles, Tesla (TSLA) is killing it. The meat industry is large and people are choosing the category of plant-based meat which is seeing huge growth. If Beyond Meat (BYND) can capture a fraction of the total meat market, it will be huge one day.
When looking for stocks to buy, keep an eye on these three things and when you have conviction, buy all major dips and never panic sell. This is the key to successful long term investing!