Wednesday, May 8, 2024

UNH to 560

 After the change health scare, nothing Stopping this one

$UNH

Tuesday, May 7, 2024

An extra double or decade early

 Todd Tresidder (www.financialmentor.com) talks about investment goals in terms of number of doublings. For e.g. at 8% compounded return, an investment takes 9 years to double. Most professionals start their careers at the age of 25 and retire by 65. Over this 40 year working career, an 8% compounded return provides one with 4.5 doublings.

What does it take to get an extra doubling - retire with 2x the money? What does it take to retire almost a decade early? A stinking 2% extra return per year!
So, how do you get this extra 2% per year. Lets first talk about how not to underperform the ~8% return an index provides over the long term. Here are the don'ts:
  • Investing in high expense ratio funds
  • Timing the market
  • Chasing high performing funds
  • Speculating with options
  • Sizing too big
  • Making behavioral mistakes (FOMO, disposition effect, loss aversion, anchoring etc.)

Now that we have covered how to avoid harm, lets talk about juicing the index returns by 2% per year. The solution is intelligent leverage. To achieve the extra 2% return, you would need a portfolio margin account. Most brokers require a minimum balance of $125k - $150k to qualify for portfolio margin. Assuming you have it, the next step is systematically harvesting premium by selling deep out of the money options to generate the extra 2% per year. In the next blog, we will go through the set up for position sizing trades, stock selection, strike prices and option duration. In the final blog, we will look at account management focusing on getting out of losing trades when stocks get assigned.

Thursday, May 2, 2024

MRVL : 66 to 88

Wall Street analysts have a consensus "Strong Buy" rating on MRVL, with an average 12-month price target of $89.42, representing 34.59% upside potential


Key positives for Marvell include its strong position in next-generation AI accelerator ASICs, projected market expansion with a 29% CAGR in its total addressable market through 2028, and strategic acquisitions that have strengthened its competitive position


$MRVL

Follow @gnvenky

Wednesday, May 1, 2024

Bend it like Buffet

 https://www.tipranks.com/news/buy-the-fear-says-bernstein-about-apple-stock


It’s one of Wall Street’s most well-known rallying cries. ‘Buy the fear’ is a slogan most investors are familiar with, signaling that it’s time to load up on a stock that has had everyone running in the opposite direction.

On this matter, you could make the case the bears have been out for Apple (NASDAQ:AAPL) in recent times. Despite the market’s year-to-date gains, AAPL shares have been trending the other way, showing losses of 11% since the start of the year.

So, that famous maxim now applies to the tech giant, says Bernstein’s Toni Sacconaghi, who tells investors to “be like Buffett” and load up while others are too afraid to do so.

Follow @gnvenky

Warren

10-best-companies-invest-now

https://www.morningstar.com/stocks/10-best-companies-invest-now

The 10 most undervalued stocks from our Best Companies to Own list as of April 29, 2024, were:

  1. Yum China YUMC
  2. Roche Holding RHHBY
  3. Polaris PII
  4. British American Tobacco BTI
  5. Pfizer PFE
  6. Imperial Brands IMBBY
  7. Ambev ABEV
  8. Rentokil Initial RTO
  9. Anheuser-Busch InBev BUD
  10. Gilead Sciences GILD