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Three socks i’m buying july 2018 we are bringing this series back baby if you didn’t already know i killed this series a long time ago okay i killed it quite a while back and i changed some names and whatnot because basically what happened is i kind of started the whole trend on youtube which was like well over two years ago now about like three stocks i’m buying or
Things like that okay so i used to call it three three stocks to buy okay three stocks to buy and i didn’t like that name because it sounded like i was suggesting that people go buy these stocks these or three stocks you want to buy i never suggest you should go buy a stock whether that stocks gonna go up all the hot down a lot anything like that like i’m trying
To teach people out of fish i love doing these videos to give you guys more names to look into and kind of inspire you and things like that but i’m not trying to tell you you need to go buy some stocks so i change the name to three stocks i’m buying okay three stocks i’m buying which was a little bit of a confusing name because a three stocks i’m buying a lot of
Times i was sharing necessarily the like not necessarily stocks i would be buying that month but i was sharing my biggest investments okay so i was sharing oh these are my actually my three biggest investments but i was calling this series three stocks i’m buying a kind of didn’t make sense so then i change it up to start calling it for stocks for stocks i own four
Stocks i own which is a super popular series and this one covers my four biggest investments okay for stocks i owe and covers my four biggest investments i’m going to continue that series okay this series is truly three stocks i’m buying okay or planning on buying during the month of well this month it’s july and i’m planning on carrying this series through three
Stocks i’m buying i’m killing off this series that i used to have the called three stocks to watch i was super popular series the reason i’m killing off that series is it was it was like i didn’t really like doing i’ll be honest i was just talking about like controversial stocks that something was gonna be going on with it it brought in a ton of views but at the
End of the day i didn’t really like that series at all so i’m killing that off despite it being a very popular thing and whatnot and i’m sticking with just four stocks i own which covers the four biggest investments i have and then also i’m gonna be doing this new series which is three stocks i’m buying guys so super excited to share this with you here today three
Stocks i’m planning on buying during the month of july as of now and we’ll just kind of get into this now this series what i’m gonna do is i’m gonna do it all on the whiteboard okay so i’m gonna go all off the top of my head on why i’m buying these three particular stocks whereas you know four stocks i own i show you slides and whatnot this this series i’m just
Doing strauss top of my head because i’m like if i’m buying stocks and especially if it’s some new ones with to these stocks i have never owned before or that i’m gonna be sharing with you like i should just have it off the top of my head like why am i bullish on that stock i shouldn’t have to look at slides and whatnot so as always today’s video is sponsored by my
Private stock market membership group that is a very exclusive club of people who are in there who are very serious about learning about the stock market or her advanced investors and just kind of want to be in that group with me and to talk and things like that you have one-on-one access to me to talk in those comments and whenever i respond to all the comments
In that group you also have access to see an account that is nearly $100,000 now that i just started about six months ago i’ve been plowing a lot of money into that it’s nearly a six-figure account now and you get to kind of see how i’m building that account the actual trades i’m making all those type of things through fidelity investments there’s so much value by
Being in that group i hope to see you in there as soon as possible all right guys the first stock the first stock up is the one i already own some shares in and then the other two are ones i had not bought it all yet and the first ones toll brothers okay so toll brothers right now i can get those shares well under my cost basis on toll brothers right now okay why
Am i so bullish on toll brothers we’re talking about a company that has unbelievable brand okay unbelievable brand name you know the creme de la creme in home building okay and they are on the high end okay they participate on the high end of home builders the majority of home the average home toll brothers builds right it’s over $800,000 its approaching almost
$900,000 now okay they’re the very very high-end of homes i like that for a few reasons all right the first reason is because obviously these people if interest rates which everybody talks about interest rates right they could be going up these people are not nearly as effective by an interest rate rise okay the interest rate goes up another quarter percent some
Of this behind eight hundred plus thousand dollar home right these are the type of people that are generally make in you know quarter mil half mil a year if not several million a year and also you know think about it from the perspective of 25% these guys they buy cash okay 25 percent of the people that buy at old brothers home by cash they don’t even bother taking
Out alone okay not even a partial loan they literally buy that home cash okay yeah million dollar house buying it cashed not even not even literally taking out a loan on it it’s pretty crazy right so interest rates are not gonna affect these folks that nearly as much as maybe say the middle class right if you’re selling homes at three hundred thousand dollar price
Point four hundred thousand dollar price point now you’re talking more about the middle class and you know a quarter percent or a half a percent interest rate rise could definitely affect that with toll brothers it’s not nearly as much okay they got phenomenal reputation they’re competing at the high end alright toll brothers also this is a company that right now
Has a forward p/e forty on this company of somewhere rate around seven and a half okay unbelievably low now home builders generally you know i guess you say they generally are on lower end of for pease because you know home building can be cyclical because sometimes and things like that we know if the economy got super weak you know home builders are definitely
Hit but a seven and a half if for the creme de la creme home builder is way too low in my opinion this company should be out of four p of ten or eleven i think that would be realistic to have it at a seven and a half it’s just it’s too much okay that’s too much alright also this is a company that is diversified okay they are drive versified they are not just a
Single-family home so they don’t just build single-family homes they also build apartment communities and condo communities all those type of things high-rises there they’re well diversified and also they’re big into the active you know i guess you say active communities which is like age restricted communities so you have to be 55 years or older and to live there
And whatnot and they they’re phenomenal at building those type of communities which we know the baby boomers are getting into that retirement age now they’re looking for homes to settle down and and toll brothers a phenomenal home builder you know they could they could buy a brand-new home in one of these age restricted communities okay so they’re well diversified
That’s another phenomenal thing i like management i love the management this company very seasoned man tene phenomenal management team if you look at the tenure of a lot of these guys they’ve been around the company for a long long time they’ve been through what happened in the recession they got the company out of the recession you know successfully and built into
A much much stronger business okay much much stronger business profits are just pouring in and actually accelerating you know profit growth year you know year over year is just going up with this company profits going up if you look at what they 2011 was better than 2010 2012 was better than 2011 2013 was better than 2012 every single year you just see profits
In revenue going up and up and up for this company okay just a phenomenal company they also have a big share buyback on right now they have a share buyback on which i love they’re taking more share so even though they have tons of profits incoming they have you know a massive share buyback by the way this companies expect to have a very strong second half of the
Year because basically what happened is recently a lot of their communities have sold out ahead of schedule and so they’re waiting for new communities to open up because basically when you’re a home builder let’s say you have a hundred lots you sell those hundred homes okay you got nothing else to sell now at this point you gotta wait for the next community open
Up so you can sell in the next hundred homes or the next hundred fifty homes back half of the year i got a share buyback on they do pay dividend it’s not really why i’m in the stock this is why i’m really in this talk and why i plan on buying more during the month of july 2018 guys so toll brothers i love their business love that business all right now we get to
Get into two stocks debt i have never bought shares in okay track these stocks for a long long time never bought shares in those companies but i’m planning to more unlikely during the month of july all right the first one is sky works solutions okay scott work solutions is a semiconductor play okay there’s semiconductor play there’s a lot of different electronics
Devices but the majority of their revenue is going to come from smartphones okay the majority of the revenue comes from smartphones and obviously who’s the who are the two big dogs in smartphones apple and samsung okay apple and samsung so naturally this company gets a significant portion of the red through the door and profits from apple and samsung that’s just how
It is when you’re you’re dealing with the phone space okay so they’re massive they’re but they’re the chips are spreading into other things okay we’ll just call it in other category there are type of chips you can start using these in a lot of different devices that are connected okay that you need connections and whatnot you know think about your phone connecting
To a speaker or something like that like they can play in all these different devices the the smart home as we call it you know where all these devices are gonna start being connected where your thermostat is connected somehow to your refrigerator and all this type of stuff we’re know we’re going in the smart home age skyworks solutions is set up perfectly for this
Okay a lot of their chips that work perfect as smartphones are gonna go into a lot of these other categories all right as a phenomenal deal right also it’s a company right company that is growing profits you know very impressive revenues very impressive profits and revenue are going up for this company pretty much urine and you’re out including this year despite
One of their biggest customers apple which accounts for somewhere around 40 percent of their business apples you know and the growth was in a you know nearly as big as expected okay from iphone 10 so needless to say they’re still growing profits and revenues despite the smartphone environment being weak right now and it’s really weak and android android is super
Weak okay apples barely growing iphone units a lot of android new customers of theirs or actually having their units go down and are actually shrinking right now but despite this profits revenues are up for the company all right when you can grow in an environment that’s not a great environment right now if smartphones are that’s a phenomenal thing okay a huge
Reason why i’m very interested in this company is 5g5 g is going to be massive for this company they’re one of the best in my in my opinion i’m kind of looking at they’re one of the best pure plays on 5g we’re looking out into the future qualcomm’s there there’s a few other players intel could be very involved with 5g and whatnot obviously the phone carriers could
Probably make some more profits from 5g and from looking at from sky works you know angle they’re gonna be able to likely increase revenues and profits immensely in the 5g error okay so this is something is gonna be really big for the company all right this is a company that despite their profits revenues going up despite you know having you know the 5g build-out
That they’re gonna be able to make a lot of money over time in that it’s a company that right now the forward p/e last time i looked on skyworks right now is somewhere around i want to say between 11 and 12 okay to an 11 and 12 forward p/e on this company a company that’s increasing revenues and profits in an environment that’s not that good imagine what they’re
Gonna be able to do as long as they execute very well on 5g and that brings me to my next point which is management is unreal at this company the way they’ve been able to grow this company over time that management team has done such a great job navigating everything you know fighting off competitors here and there expanding content into the new customers when
They used to maybe only get $3 a phone that same content now they can get 15 $20 on some of these high-end phones and whatnot for content they’ve they’ve expanded their customer base and who’s their customers and also they’ve expanded with more content inside of these customers okay phenomenal phenomenal management team and the last thing i’ll kind of bring up
Here is the balance sheet balance sheets about as good as you can get no doubt on that balance sheet loaded up on cash and investments and needless to say when i look at all this it’s a company i’m very excited about and that’s another reason why i’m planning unlikely buying skyworks solutions at some point during the month of july and i will probably build into
A pretty big position you know it’s skyworks as a company i follow for a long long time and i’ve never bought it never bought it but now i’m just looking at i’m like i think it’s a good opportunity all right in the third stock i’m planning i’m more than likely buying in the month of july the company named fedex all right fedex fedex a lot of reasons why i want to
Buy this one okay obviously online online is just getting bigger and bigger the amount of orders you know going through online it’s just going up and up and up and each year and what does that do for fedex’s revenues and profits fedex revenues and profits are just going up you can look at it year after year after year they’re growing phenomenally you look even in
The short-term their last quarter they just reported about a week ago unreal the numbers were unreal okay just strong across-the-board they’ve been spending a lot of money but to basically make their business even more efficient okay so they’ve been doing a lot of expenses but to make that business much more efficient and actually they have a lot of competitive
Advantages now at this point actually over ups okay it’s not like i look at it from a perspective of fedex it’s got to take out ups or something i think there’s plenty of business for both them i’m just looking at it from the perspective of i think they have some definitely definitely some competitive advantages now or over ups and fedex now a lot of times you know
Something that might take five days to ship through ups it might take four at fedex okay through a lot of so you know that’s a that’s a big difference one day is all the days in the world when you’re talking about this game okay it’s a company that the management teams about as good as you can get you can look at the house season their management team is how they’ve
Been able to grow this company the guy’s the ceo he was co-founder of the company back in 73 they started this business with a few planes and they’ve grown it into a 60 billion dollar market cap now as good as you can get from management the the things that you know they’ve been able to do they’re it’s just off the charts all right then we can think about it from
The perspective of for pe for p on this company is somewhere around 212 right now very very affordable balance sheet let’s talk about balance sheet for a second and doesn’t have the best balance sheet in the world but it does have a much better balance sheet than i always like to look at balance sheet in relation to the peers or competitors and there may their
Only major competitor is ups they have a better balance sheet than ups okay which brings me to our next point which is somewhat of a monopoly okay we’ll just say ma know somewhat of a monopoly these two have on it right if you’re not shipping with ups who’s your other realistic option it’s pretty much fedex okay invites a versa if you’re not shipping with fedex
It’s pretty much ups maybe you can use usps but pretty much other than that is like a little monopoly these guys have on it and they have a huge competitive moat in this business okay they have a huge competitive moat which is phenomenal right this think about it from perspective you want to start a you know a company to compete with these guys man you’re gonna
Need you know billions upon billions upon billions of dollars yeah look up the price of just you know boeing 767 or something like that like one plane and then imagine you need a fleet of those and then imagine you need a fleet of trucks in all these different software’s and whatnot to run an efficient system like like there’s a massive competitive mode because
It’s just so expensive if you want to actually build out a company like fedex has okay so you know that’s a that’s a tough dealio there so when i look at all this this is very very exciting to me okay they’re also building out international alright they’re also building out international which i absolutely love this so it’s not just a domestic play on the you
Know on line and people in the united states purchasing more and more stuff online it’s going to continue to make their revenues and profits going up but there’s also the international play which our international business is expanding nicely okay there is a competitive threat with this one and their name is amazon okay amazon should always be talked about just
Because they have the amazon flex so you know that could expand out and could it hurt fedex and ups maybe maybe a little bit but the thing is you got to understand amazon as big as the amazon isn’t as massive of a company they are amazon only represents somewhere around little less than five percent of fedex is revenue okay so as big as amazon is they represent
A little less than 5% of our fedex is actual revenue coming through the door guys so if they lost some business from amazon it’s not the end of the world for the company and you got to figure even if flex grows is it gonna grow to the point where you know amazon’s just gonna use flex drivers i think that’s a little bit unrealistic especially if you’re thinking
About it from the next five years it’s possible and it is really the only major competitor hit threat – honestly fedex and ups i look out there and you think about you know alibaba shipping you think about shopify and whatnot a lot of these plays are gonna be going through fedex ok a lot of these plays are going through fedex guys so needless to say i love fedex
And i need to add i don’t need to but i want to add a transport play okay i want to add a transport play to my portfolio i don’t have anything so transport meaning something you know either an airline of some kind or you know we could do something with trucking like you know night transportation or something like that or i can do something in this play which is
Ups or fedex and when i look at it i really like fedex a lot better than ups so for all those reasons i’m very bullish on fedex and it’s why we will likely be buying some fedex shares during the month of july so i hope you guys really enjoy this let me know if you enjoyed it in that comment section as always don’t forget if you want to get my stock market membership
Group that is a first link down there i hope to see you guys and talk to you in that group thank you for watching and have a great day
Transcribed from video
3 STOCKS IM BUYING – JULY 2018 By Financial Education
