Stocks I Want to Buy - My Short Bucket List of Stocks to Buy

TL;DR

In this video, the creator discusses their "bucket list" of stocks and explains the importance of having a margin of safety for each stock.

Transcript

hi i'm jimmy in this video we're going to look at a short list of stocks that i really want to buy but i need them to fall at least below my calculation of an ideal entry point now this is a list that i've called my bucket list of stocks and i've made videos on each of these stocks in the past so i'll leave a link in the description below to the vi... Read More

Key Insights

• 🍧 The creator emphasizes the importance of having a margin of safety when investing in stocks.
• ⚾ They acknowledge that personal investment rules may be adjusted based on individual comfort levels and market conditions.
• 🧚 Missed opportunities due to stocks trading above the calculated fair value highlight the significance of adhering to investment rules.
• 👂 The creator values a short list of companies to track closely for better research and decision-making.
• 👇 Stocks like Disney and Microsoft are already owned by the creator but are waiting for more favorable entry points.
• ⌛ Peloton's recent rally and potential risks influenced the creator's decision not to buy the stock at the time.
• 😫 Researching and determining confidence levels in stocks help set appropriate margin of safety percentages.

Questions & Answers

Q: What is the purpose of the margin of safety in the stock valuation process?

The margin of safety serves as a buffer zone to account for potential risks and uncertainties in future projections used to determine the fair value of a stock. It allows investors to buy stocks at a price below the calculated fair value.

Q: Why does the creator have different margin of safety percentages for each stock on their bucket list?

The margin of safety percentages vary depending on the creator's level of confidence in the fair value calculation and their willingness to take on risk. Some stocks, like Disney, have a lower margin of safety because the creator is more confident in the fair value calculation.

Q: What happens if a stock's price goes above the calculated fair value?

The creator tries to avoid buying stocks above their calculated fair value. They stick to their investment rules and only purchase stocks below the fair value. Buying above fair value is seen as a risk and may lead to less desirable investment outcomes.

Q: Why does the creator limit the number of companies on their bucket list?

The creator prefers to keep their list short to better track the companies they are closely watching. With a smaller list, they can focus on thorough research and wait for great investment opportunities. A shorter list also helps in maintaining confidence levels and setting rational margin of safety percentages.

Summary & Key Takeaways

• The creator maintains a bucket list of stocks with key information such as ticker symbol, company name, last valuation date, fair value calculation, margin of safety, and current stock price.

• Disney and Microsoft are two stocks on the list that the creator already owns, but they are waiting for the stock prices to fall below their ideal entry points.

• Peloton is an example of a stock that the creator missed out on buying due to the price being above their fair value calculation, demonstrating the importance of sticking to investment rules.