Investment in 2020 should actually come with a disclaimer. The last six-plus months have been one of the most volatile periods on record with benchmarks S&P 500 Losing 34% of its value in less than five weeks, then regaining what (and some) was lost in the subsequent five months. This year undeniably taught investors how useless it is to try to predict short-term market movements.
But at the same time, this is a great year for long-term investors to buy cheaply into great companies. With ups and downs compared to the previous week, the opportunity is again knocking for long-term investors to buy into the market’s most volatile stocks.
Best of all, long-term investors do not need to be rich to eventually become rich. If you have $ 2,500 that you can spare, which will not be required to pay bills or cover emergencies, you will have more than enough to buy the following four invincible shares.
If you can get any kind of meaningful discount on your shares Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGLE)The parent company of Google and YouTube, I strongly suggest you consider taking it.
As you can imagine, the alphabet has been spotted by the coronavirus virus 2019 (COVID-19) epidemic. As an advertising-based business, Alphabet has pulled companies of all sizes back at its expense, causing the company to report its first year-over-year sales decline since going public.
However, long-term investors would not be smart to read too much into this data. As a whole, GlobalStats finds that Google accounted for between 92% and 93% of all online Internet searches (on a monthly basis) in the following year. It is clear that when it comes to advertising search, it means that it will increase pricing power during many long periods of economic expansion.
Alphabet’s cloud infrastructure segment, Google Cloud, is also a rapidly growing segment. It is no secret that cloud subscription margins are much higher than ad-based margins. With Google Cloud exceeding $ 3 billion in the second quarter and Alphabet accounting for about 8% of total sales, this is going to account for a significant increase in the company’s operating cash flow in the coming years.
You don’t have to be cute and find a hidden gem in the social media space. Just consider buying Facebook (NASDAQ: FB), Which is far and away the most unhealthy presence of social media.
Like Alphabet, Facebook’s business model is driven by advertising revenue. But in the case of Facebook, ads make up a large percentage of total sales. This means that COVID-19 concerns and the recent questions asked by Facebook about filtering abusive language have adversely affected the company’s near-term results.
And yet, despite the worst quarter for the US economy in decades, Facebook still posted 11% year-over-year sales growth during the June-ended quarter. This should tell you something about how important the social media assets of Facebook and its family are to the advertising world.
As of June 30, Facebook had 2.7 billion monthly users, as well as 3.14 billion family monthly active users (assets owned by the family’s account include Instagram and WhatsApp). There is simply nowhere else that advertisers can go where they are going to gain access to at least 2.7 billion targeted eyeballs, and Facebook knows this.
In addition, the company has monetized only a portion of its assets. The bulk of current sales are derived from advertising revenue on Facebook and Instagram, with Facebook Messenger and WhatsApp not yet monetized in any meaningful way. When the company monetizes these platforms, as well as additional initiatives beyond Facebook Pay, we may see sky-high sales growth from a megacap company.
If you are not looking closely Teldok Health (NYSE: TDOC), You are remembering the blossom of an industry veteran and a company on the cutting edge of precision medicine.
As is clear from the name, Teldoc is a leading telemedicine company in the healthcare sector. It was already seeing a boon in businesses well before the epidemic. However, placing sick and defenseless people outside hospitals and doctor’s offices has led to virtual seizures which are much more important. After generating $ 20 million in full-year sales in 2013, Taildock could hit $ 1 billion this year and top 20 billion by $ 2023.
Additionally, you should understand that visiting telemedicine is a benefit for all parties. It places less time constraints on physicians, provides convenience for the patient, and is cheaper than office visits for health insurance companies. We are really scratching the tip of the iceberg after Taildock recorded 2.8 million visits during the June-ended quarter.
Also, do not ignore TelDoc’s transformative cash and stock merger with the applicable health signals company Livongo Health (NASDAQ: LVGO). Livongo gathers copious amounts of data on patients with chronic diseases and, using artificial intelligence as an aid, sends these tips and elbows to people to provoke permanent behavioral changes. The work that Livongo is doing is clearly working, as the company has delivered three consecutive quarterly profits and continues to double its number of diabetes member from year to year.
When combined, the pair will be invincible in the healthcare space.
This is rare when the payment-processing giant Visa (NYSE: V) Not to kick the tail and take names, but when there is less time, it is important for long-term investors.
The only route to this freight train can be slowed during the recession. Visa saw gross dollar volume on its network’s decline from the previous year to 2009, and it would be likely that the same fate in 2020, with the coronavirus epidemic in 2020, has not been consistently seen since the 1930s US unemployment rate. Push it But it is impossible to keep the well-oiled money machine down for a long time.
Working in favor of Visa reflects the fact that its success is linked to the US and global economic development. Even though economic contraction and recession is a natural part of the economic cycle, the period of expansion lasts much longer than recession.
Also understand that the sole purpose of the visa is to assist in the payment facility. Unlike its competition, it is not a lender. The major advantage of abstaining from lending is that it means there is no direct risk of increasing debt delays during periods of contraction or recession. This is why Visa’s gross margin is often 50% or more.
Visa has the largest credit card market share in the US by network purchase volume, and twice the share of its next-closest competitor. It is absolutely invincible in the payment space.