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Good many subscribers today i’m gonna be sharing with you guys the top 5 best diversified portfolios i could come up with the top 5 best out there guys so what makes a portfolio diversified what are the criterias i would look for in a diversified portfolio okay so the first thing is i look for around 5 stocks ok unless you’re in your 50s or beyond 5 stocks is about
The good amount you should own now some people argue with me they say you know we should own 10 stocks no you should only 30 stocks 40 starts 50 stocks a hundred stocks like like a million stocks like people always arguing me say 5 stocks isn’t enough i feel like 5 stocks is the perfect amount here’s why if you go less than 5 stocks you’re you’re under diversified
Right if you say you only own one or two stocks maybe 3 stocks if it is one of those stocks goes bad that’s gonna kill your portfolio if you have 5 stocks and say you got the money spread around 20% per each stock then you’re a little more diversified okay but you’re still in your best investments possible ok let’s say you’ve got a portfolio of 15 stocks right
I in my opinion you’re not picky enough stock investor at that point if you go you know what what are the chances that stock number 14 you will even remotely like as much as stock number 2 it’s very hard for me to ever even find 10 stocks i would actually invest my money on in a particular time otherwise i’d pay an overvalued valuation and i don’t like to pay
Overvalued valuations guys so 5 stocks is kind of what i look for in a diversified portfolio i think that’s the right amount ok i like them to be different industries this is huge different industries you don’t want to just have 2/3 of the stocks and in the same exact industry right i mean imagine having you know two of your five stocks you own or both in the oil
And gas sector right that would be a very bad thing because anything negative that happens in the oil and gas sector else and then that takes down your hope you’re a whole entire portfolio so you might as well almost be in one stock at that point so all five of those stocks i want them all in different industries different industries guys the next one is i like one
Or two of the stocks to be strong growth stocks okay so three or four of the stocks are more you know consisting companies you know we’re just going to be doing great and great one two two of the stocks i like them to be very strong growth so you kind of balance that you know consistency the with the growth in there okay so that’s what i look for in a diversified
Portfolio and for this game today i didn’t include any positions that might weigh for i own directly okay i didn’t include any stocks at her i own because i thought it would be too easy to do it with stocks i own obviously right and everybody already knows what stocks i own in anyways and then also i only use the stock on a stock can only be used once okay so in
These five portfolios i’m going to show you i didn’t just like recycle the stocks and use the same stock over again like let’s say i really love apple stock right it’s not like i could just use apple stock in portfolio one three four five in and so on and so forth so i made sure i only use a stock one so i hope you guys absolutely loved this video today i hope you
Get a ton of value out of it today hit a thumbs up if you do and also make sure you click that first link there in the description i’m releasing a full twelve part stock options mastery course inside the membership group guys that has coming out october 28th every single stock market investor needs to fully understand stock options you can save yourself so much
Money by hedging bets by hedging positions and get so much more upside through options every single stock market investor should take advantage of this out there unless you already know everything there is to know about stock options that’s not really for you alright guys well let’s go ahead and get in already guys are you ready coming in at portfolio number five
Okay first off we got nvidia nvidia they make basically tons of graphic type chips that a lot of high-end gamers use a lot of different people use them it’s also a great play on artificial intelligence it’s one of the best plays you can possibly do on artificial intelligence and they’re big into self-driving cars a lot of those kinds of things guys a very fast
Growth company right now if you look at their revenues and the profits they’re really exploding with this company so this company would count as the strong growth company all right general mills a consistent company all right this is a serial maker they own a lot of different food products you walk around your local grocery store right you’re gonna generally see
A lot of general mills products in there guys especially down that cereal aisle some of your favorite cereal cereals you are probably made by general mills but they are into a lot of different products in the food industry all right skyworks solutions it’s another pretty stable play a little bit of a growth company but not super high-growth okay so scott work
Solution makes a lot of the chips that go into your smartphone so if you look at your smartphone tear down so you could you know type in and maybe you own an iphone 6s type an iphone 6s tear down into google go look at that look at some of the chips i guarantee you there’s gonna be several skyworks solutions chips in your smartphone there okay so that’s a play
On that caterpillar this is a play on industrial equipment i mean i pretty much everybody out there even if you’re not a construction worker or something you’ve heard of caterpillar you’ve seen some of the big machinery they have you know if you’re if you’re gonna make a highway or something or or have a huge project that need lane clearing or something like that
You’re gonna use caterpillar equipment with that okay and the last one is alibaba another strong growth company pretty much i call it the amazon of china a slightly different business model than amazon but very similar to amazon as far as how big the company is how big it’s going to be in the future in the type of growth they’re experiencing right now so you
Really got alibaba and nvidia are really strong growth companies really strong growth companies caterpillar skyward solution in general mills are kind of the more stable ones there and all five of these are in very different industries all the five of these make their money very very different ways guys so this would definitely be a very well diversified portfolio
And that’s why it’s coming in and number five already guys are you ready for portfolio number for portfolio number four coming down here at the top is exxonmobil one of the biggest oil and gas companies out there they’re also into solar they’re also into wind a lot of different things like that renewables but the majority of their money the gift is from selling
Oil products and selling gas parts so the biggest play on that all right two things that aren’t going away anytime soon because we need energy and those are still the two main ways we get energy through natural gas and through oil all right adobe adobe if you are creative of any kind or you’re in the marketing field you are well aware of adobe adobe has a ton of
Different products that are subscription-based that basically anybody who’s a create or in the marketing to you know marketing area uses some of their products whether you do something with photos whether you’re doing something with videos adobe is phenomenal for that very strong growth company union pacific pretty much the biggest pure-play as far as trains go in
The united states of america you know everything that we get all around us that we buy right a ton of it a ton of it goes through rail a ton of it goes through rail and union pacific it’s a straight play on that alright and by the way the real companies are almost like a monopoly here in the united states i’m amazed that i even get to be the way they are because
It basically is kind of like a monopoly system so very stable consistent play nike i mean who doesn’t know what nike is you know one of the most consistent brands out there one of the most well known brands out there the the go-to brand for athletes and things like that anybody doing sports type stuff nike is the main brand there and then last one down here is
Zillow zillow also a strong growth company if you ever look for a house whether you’re buying a house whether you’re renting a house anything like that a great chance you use zillow for that or maybe you use trulia or real realtor calm which by the way zillow also owns those ones as well guys so this portfolio where where do we get our growth from this portfolio
You get it from adobe and you get it from zillow and then the more consistent plays of the nike the union pacific in the exxonmobil guys and that is a very diversified very good portfolio there and that’s why that one is number four already guys number three number three best most diversified portfolio would include disney ok this would be a very stable company i
Mean next year probably just as many people if not more people are gonna live visit disney and the disney resorts they just opened disney shanghai they’re also a very big content play they own a ton of different content companies ten different channels that you may watch on tv that’s the part of their business that is kind of struggling right now they will figure
It out on how to get into skinny bundles and a lot of those different kind of things they’ll find a way to make it work they’re very well-run company alright then we have whoa walmart so the biggest retailer in the world the most profitable retailer in the world the question for walmart kind of right now is will they become the second fiddle to amazon three four
Or five years from now and become the number two play or are they going to remain the number one play if they can remain the number one play it’s gonna be huge for them but still regardless of what happens over the next few years this is still gonna be a very well-run company is still a very profitable company over the next several years all right johnson &
Johnson if you go over your local pharmacy if you go to walmart go down you know the medicine aisle alright and just start looking at the backs of packs of different medicines or band-aids or whatever it is anything in that realm you will find massive amounts of johnson & johnson products you will also a lot of pharmaceutical products are made by johnson &
Johnson okay a very stable business a very stable company fedex you guys probably all know fedex they move goods around you probably have ordered something online in the past and it’s got shipped through if fedex you might have shipped something to somebody else maybe legal documents maybe you know a package or something like that you probably use fedex okay
A straight play on the fact that we’re all buying and selling more things online than ever before and the last one is the tesla okay so up until this time this portfolio is kind of boring right just kind of some kids consisting companies then you get tesla down here the extremely strong growth company the model three is just going into mass productions here this
Winter okay and that production and will build throughout 2018 tesla is going to be a huge growth company monstrous growth numbers over the next few years so this portfolio kind of boring just a bunch of consistent companies a bunch of household names and then tesla which has insane growth right now and so that kind of makes up for the the lack of growth in these
Ones particularly is you know something like hyperbolic type growth like tesla is about to have guys and for that reason that is portfolio number three alrighty guys time to reveal portfolio number two portfolio number two start here at the top facebook okay billions of people every month use one of if not multiple facebook platforms okay so first off facebook owns
The facebook platform secondly they own instagram or third they own whatsapp they’re also an oculus and a lot of different products like that but the majority of the money they get the revenue the profits where things are going is from facebook instagram and whatsapp and so forth at play that’s that’s a strong growth company but also a relatively stable company but
Still strong growth at the moment okay mcdonald’s i mean who hasn’t eaten at mcdonald’s at least once in their life i mean this is a worldwide name around the world very stable company they just keep doing their numbers year and in year out verizon one of the biggest plays as far as a telecom play verizon wireless a lot of you guys probably have verizon wireless
Out there he’s a very big dividend very stable business okay amazon huge growth play were there with amazon obviously the retailer of the future possibly will be the number possibly it could be throw in walmart someday as the number one maybe it happens a few years from now who knows but very very good opportunity for amazon to be the number one retail player in
The world also they have amazon web services which is a huge business for that huge business i mean if webs if amazon web services was just this own business like it would be still be one of the biggest businesses in the world guys so amazon very strong growth plate and then jpmorgan chase the bank i mean one of the the in my opinion my second favorite bank in the
World my favorite commercial bank out there i think it’s just a very well-run company so that makes up my second portfolio and well of course we got strong growth there with the amazon strong growth there with facebook consistency with mcdonald’s consistency with verizon consistency with jpmorgan and now the time has come to reveal the number one portfolio already
Guys are you ready for me to reveal my number one portfolio this portfolio i absolutely love if i didn’t own the stocks i currently own this is probably a portfolio that i would actually own i love this portfolio guys this is number one oh my gosh i forgot to put number one up there number one i hope you enjoy this here coming here at the top is apple very consistent
Company will experience in my opinion probably pretty nice growth in 2018 but all just a consisting company i mean they keep their customers they always attract new customers their revenues and profits have gone up probably i if i’ve had it i don’t know this for a fact but if i look in their financials i would probably bet money that they’re there their revenues and
The profits have probably gone up 14 in the last 15 years something like that guys very consistent company just all around the board very well-run goldman sachs in my opinion the best investment bank in the world and it’s not even remotely close like them and the next closest one is like a dramatic difference guys it’s the best run investment bank they’re so well
Politically connected it is unbelievable guys love goldman sachs starbucks starbucks very consistent company they’re just going to keep putting up numbers the revenue will just keep rising gross profit on all the kinds of things in the future a very well-run company all around people that get their coffee one day they’re gonna go back and get that coffee the next
Day home depot home depot one of the only retailers out there who’s pretty much almost unaffected from amazon okay almost unaffected doesn’t mean there always be like that maybe someday amazon really starts to focus on home depot’s business but as of right now there’s no signs at home depot is slowing down anytime soon and their comp store sales have been unreal
The last few years guys unreal and the last one is google google mcdougal now why would i include google and apple obviously you guys know what google is you know you say well they’re both you kind of aren’t they related and whatnot because they make some tech products you don’t understand their – what a different business bottles okay apple makes its money from
Selling hardware devices okay they sell hardware devices iphones ipads macs and mainly from services okay so services so selling movies off of that selling music selling cloud whatever it is off of that so selling hardware and then selling services around that that’s where they get 90 plus percent of their money if not ninety five percent plus of their money right
Google how do they make their money the majority of their money from search okay google search and from youtube alright youtube and the other part is cloud all right cloud hardware sales you know we see the pixel phone out there we see you know the chromecast and a lot of different google products the google help home and whatnot those are like pet projects to
Google okay those are not to google yet would they love to make you know an extra couple billion dollars a year and profit off of those yes well they probably be doing that yes but at the same time that’s not what runs google’s business google’s business is still google search youtube and the cloud services okay so a way different business model then apple even
Though they sell some of the same products and apples all about hardware and selling services off of that hardware guys so very different so this portfolio i just love it’s well diversified all these companies are very very different and you know we got home depot starbucks and goldman sachs is kind of this the the safer type companies apple i think will have a
Nice strong growth year 2018 then probably slow after that but google is the main one that’s a very strong growth company right now and i don’t see that one’s slowing anytime soon and for that reason it’s my number one favor diversify portfolio out there guys let me know in that comment section what your favorite diversified portfolio is i would love to hear your
Guy’s opinion on this i hope you absolutely enjoyed this video hit it a thumbs up if you got a lot of value out of this guys don’t forget if you do not understand stock options make sure you check out my twelve part course it took me three weeks to put this together a ton of work has gone into this and i think it’s just gonna be phenomenal for all you guys so click
That first link in the description join that membership group and you will have access to that starting october 28th thank you for watching guys and have a great day
Transcribed from video
Top 5 Diversified Stock Market Portfolios By Financial Education
