I just funded a new SEP account with about 2/3 of the maximum allowed, in cash.
I’m looking for suggestions on what to buy. I already own shares in ANET and SHOP - although not as much as I would have liked, but I’m concerned about buying more of them at current prices (more concerned about SHOP than ANET, FWTW).
If it matters, I get free commissions for 90 days, so the number of trades I make doesn’t matter. Also, since it’s a retirement account, there’s no margin, which means selling a Put ties up all the capital needed if it’s exercised right away.
TIA (Thanks In Advance)
Smorg,
Happy 8 year Foolaversary! I guess I would recommend the stocks I own. As I said in my review last month, I think YELP is my pick for “best buy now.” Incredibly cheap for such a consistent grower – and rapidly increasing profitability too! The share price has dropped from the low 40’s to the low 30’s, so it’s fairly volatile, but I would imagine it’s done most of its dropping already unless something changes for the company. We’ll call that the middle volatility option.
Want something less swingy? Look no further than FB. Facebook constantly amazes me with it’s avenues for growth. Even as one of the biggest companies in the world now, it hasn’t slowed down much and still grew revenue at 51% last quarter. I think the downside is very limited here. The upside, not so much.
Highest volatility option: TTD. The Trade Desk was a new position for me last month after Rule Breakers recommended it (I think it’s ok to say that now as it’s been over a month…their new picks came out this week). I got into this one aroun $35 and it shot up to $45 and is now back down around $36. All in the course of a few weeks! That’s volatile. But they grew revenue at 70%(!) last quarter, and they do a really good job aligning their interests with big ad agencies, their customers.
Happy buying!
Bear
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Happy 8 year Foolaversary!
Thanks - and clearly I picked a super-great time to start investing on my own. In the one account I started at the same time I’m up 300% (4 bagger). With DRIP, the S&P is up “only” 229%, so I’m not unhappy with my results.
YELP is my pick for “best buy now”
less swingy…FB
Highest volatility option: TDD
Thanks, Bear.
I’m not buying FB at these levels. Yeah, it’s doing great, but if we get a double out of it within 5 years I’d be surprised (the law of large numbers and all). I admit that I hate using the site - my wife has a page for her documentary and it’s never obvious how to structure the page’s contents, whether we want to feature a trailer, a quote and link to an independent review, photos, etc. It’s just a mess. Facebook needs something like their VR efforts (remember their purchase of Oculus Rift?) to take hold. In terms of large cap stocks, I’d prefer an Amazon which already has alternate businesses to keep growing.
Yelp, hmm. I was a huge fan way back when, but now what I see is that the quality of the reviews has diminished (out of date, people just trying to support a business they like, businesses soliciting reviews, weird automatic filtering, persistent rumors of pay for play, etc.). I also don’t believe management is up to the task. Yelp also burns through salespeople like crazy. I’d consider this as a turn-around play.
TDD, sounds like another Tube Mogul. There seems to have been a lot of companies trying to get into this space, and I don’t yet know what makes TDD special.
I may take a small stake in a few companies and then wait for drops/corrections. Since this is a retirement account, I might get some IJS or FDN as well, but since I’m less than 10 years from retiring I feel I need to be ready to pull the sales trigger more rapidly than if I were younger.
“I’m not buying FB at these levels. Yeah, it’s doing great, but if we get a double out of it within 5 years I’d be surprised (the law of large numbers and all). I admit that I hate using the site - my wife has a page for her documentary and it’s never obvious how to structure the page’s contents, whether we want to feature a trailer, a quote and link to an independent review, photos, etc. It’s just a mess. Facebook needs something like their VR efforts (remember their purchase of Oculus Rift?) to take hold. In terms of large cap stocks, I’d prefer an Amazon which already has alternate businesses to keep growing.”
Instagram reaches more than 1 million MONTHLY ACTIVE ADVERTISERS, according to Reuters. I believe that I read this is an increase from 400K 2 Qs ago and 800k a Q ago. Might this not qualify as a catalyst along with WhatsApp which has yet to be monetized?
Rob
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