3 Stocks to Buy February 2021 and Complete Your Portfolio | Summary and Q&A

TL;DR

This video discusses the stocks in the 2021 Bowtie Nation portfolio, including the sectors they cover and the need for diversification, and introduces three stocks to add for better returns and lower risk.

Key Insights

• 🧑‍🌾 The 2021 Bowtie Nation portfolio has experienced significant returns so far, driven by stocks in energy, healthcare, and financials sectors.
• 💐 Diversification is necessary to lower risk and capture opportunities in sectors that are not currently represented in the portfolio, such as consumer staples, consumer discretionary, and materials.
• 📈 The three stocks recommended for addition to the portfolio are WW International, ZTS, and Clorox, each providing exposure to different sectors and trends.
• ❓ WW International is poised to benefit from a potential rebound in consumer discretionary spending.
• 💗 ZTS offers exposure to the growing livestock and companion pet markets.
• 💐 Clorox, a consumer staples giant, presents a stable investment option with steady cash flows and a history of dividend payments.

Transcript

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Questions & Answers

Q: Why is diversification important for a stock portfolio?

Diversification helps to spread risk across different industries and sectors, ensuring that a portfolio is not overly exposed to the performance of just a few stocks. By diversifying, investors can potentially lower their risk and increase their chances for better overall returns.

Q: What are the sectors currently represented in the 2021 Bowtie Nation portfolio?

The current sectors in the portfolio include energy, healthcare, financials, telecom, industrials, and technology. These sectors have performed well, but there are gaps in consumer staples, consumer discretionary, and materials.

Q: Why is WW International a good addition to the portfolio?

WW International (formerly Weight Watchers) offers exposure to the potential surge in consumer discretionary spending as people start to go out more. It is a leading company in the weight management industry and has adapted its business to a digital model, which is expected to rebound strongly.

Q: Why is ZTS a potential stock to consider in the material sector?

ZTS, a global leader in animal health medicines, operates in the healthcare/pharma space but offers exposure to the cyclical trends in livestock and companion pet markets. With both segments performing well, ZTS has shown strong earnings growth and has the potential for further upside.

Summary & Key Takeaways

• The 2021 Bowtie Nation portfolio has seen strong returns, particularly in sectors like energy, healthcare, and financials.

• However, to mitigate risk and improve returns further, diversification is needed by adding stocks from sectors not currently represented in the portfolio.

• Three stocks are introduced for potential inclusion in the portfolio: WW International, ZTS, and Clorox.