Stocks I Want to Buy in 2024! My List of Stocks to Buy in 2024, at the Right Price

Summary

In this video, Jimmy discusses his 'Bullpen' of stocks, a curated list of companies he's interested in owning at some point. He categorizes the stocks by sectors, explains his investment rationale for each, and shares the fair value and ideal entry price based on a margin of safety. Jimmy also mentions his current holdings, including companies like Disney, Google, and Amazon, and his strategy for diversification and risk management. He invites viewers to share their insights and investment theses, emphasizing the value of diverse perspectives in the investment community.

Takeaways

• 📈 Jimmy discusses his 'Bullpen of stocks', which are companies he's interested in owning at some point.
• 🔍 He conducts deep dives on companies to determine if they are worth owning, not necessarily at the current price.
• 📊 Jimmy breaks down his list of stocks by different sectors and provides a quick rationale for each company's inclusion.
• 💡 He explains the concept of 'fair value' and 'ideal entry price', including the use of a margin of safety in determining the latter.
• 🎥 Jimmy has done deep dives on each company and suggests watching other videos for more detailed information.
• 🌐 In the communication services sector, he likes five companies, all of which he already owns.
• 💰 He uses a margin of safety (MOS) to assess risk, with Disney having a higher MOS due to perceived risk.
• 🛒 The consumer discretionary sector includes companies that typically perform well even during economic struggles.
• 💊 In the healthcare sector, Jimmy only has CVS, but suggests Walgreens Boots Alliance might also be a good addition.
• 🏦 The financial sector includes PayPal and Citigroup, with the latter valued using price to tangible book value instead of discounted cash flow.
• 🛠️ The industrial sector features AD Core, a company Jimmy is eager to buy but hasn't due to not releasing a video on it yet.
• 💻 Information technology stocks include Microsoft, Apple, and Intel, with Jimmy owning all three and considering buying more if prices drop.
• 🧪 The materials sector has one small-cap chemical company, which Jimmy is interested in but needs the stock to pull back for a purchase.

Q & A

What is Jimmy's 'Bullpen of stocks'?

Jimmy's 'Bullpen of stocks' is a list of stocks that he is interested in buying. These are companies he has researched deeply and would like to own at some point, potentially not at the current price but at a price he considers fair or ideal with a margin of safety.

How does Jimmy determine the ideal entry price for a stock?

Jimmy determines the ideal entry price for a stock by calculating its fair value and then adding a margin of safety based on the research he has done on the company.

What is the margin of safety (MOS) and how does Jimmy use it?

The margin of safety (MOS) is a measure of the cushion against the downside risk of an investment. Jimmy uses it to adjust the fair value of a stock to determine an ideal entry price, with a larger MOS indicating a higher perceived risk.

How many companies does Jimmy have in his Bullpen from the communication services sector?

Jimmy has five companies from the communication services sector in his Bullpen.

Which company does Jimmy mention as having a fair value near 100, but currently trading in the low 80s?

Disney is the company Jimmy mentions as having a fair value near 100, but currently trading in the low 80s.

What is Jimmy's view on Alphabet (Google) in terms of its margin of safety?

Jimmy views Alphabet (Google) as a solid company with a strong brand and diverse business operations, indicating that he doesn't need much of a margin of safety for it.

What is the highest margin of safety Jimmy is willing to use?

Jimmy's highest margin of safety he is willing to use is 25%, and if he needs more than that, he considers the risk too high and looks for another company.

How many companies does Jimmy have in his Bullpen from the consumer discretionary sector?

Jimmy has five companies from the consumer discretionary sector in his Bullpen.

Which company in Jimmy's Bullpen is an exception to being valued using discounted free cash flow?

Citigroup is the exception in Jimmy's Bullpen, being valued using price to tangible book value instead of discounted free cash flow.

How many companies does Jimmy have in his Bullpen from the financial sector?

Jimmy has four companies from the financial sector in his Bullpen.

What is Jimmy's strategy when he finds a stock that he likes but hasn't released a video on yet?

Jimmy has a rule that he won't buy a stock unless he first releases a video on YouTube discussing it. This means if he finds a stock he likes but hasn't made a video on, he will hold off on purchasing until he has shared his thoughts publicly.

How many companies does Jimmy have in his Bullpen from the healthcare sector?

Jimmy has one company, CVS, from the healthcare sector in his Bullpen.

What is Jimmy's view on the industrial sector in his Bullpen?

Jimmy has one company in the industrial sector, AD Core, which he likes but hasn't had the opportunity to buy yet due to his rule of releasing a video before making a purchase.

How many companies does Jimmy have in his Bullpen from the information technology sector?

Jimmy has three companies from the information technology sector in his Bullpen.

What is Jimmy's strategy for Microsoft and Apple if their stock prices drop below the ideal entry?

If Microsoft and Apple's stock prices drop below the ideal entry, Jimmy would almost certainly buy more of these stocks to bring down his average price.

How many companies does Jimmy have in his Bullpen from the materials sector?

Jimmy has one company from the materials sector in his Bullpen.

What does Jimmy suggest for viewers who have investment ideas or own any of the stocks he discussed?

Jimmy encourages viewers to share their investment ideas in the comments and to discuss their purchase points and investment theses behind the stocks they own or are considering buying.