Like any parent, investors should love all their investments equally. Your blue chips like Walmart (NYSE:WMT) or Coca-Cola (NYSE:KO) should hold just as much weight in your heart as your high-flying growth stocks like Zoom (NASDAQ:ZM) or Tesla (NASDAQ:TSLA). However, this is rarely the case. Whether it’s the first-born, the baby, or a middle child who’s really good at sports, a favorite will always reveal itself sooner or later and the same can be said for our portfolios. To rub salt further into the wounds of all the Kevin McAllisters out there, I’m going to tell you the two favorite stocks from my portfolio and why I never plan on selling them.
Just look at our returns versus that of the S&P 500! Click here to find out how we continue to beat the market and view the list of stocks we think will turn out to be the next Amazon, Tesla, or Netflix!
If anybody has been following this blog recently, you can tell I’m quite bullish on the future of online gambling in the U.S. and I think Draftkings (NASDAQ:DKNG) is in one of the strongest positions of any of its competitors. I’ve broken down my thoughts here, as well as a run-through of some of the other players, including Penn National Gaming (NASDAQ:PENN) and GameAccount Network (NASDAQ:GAN).
Many detractors will say that once the big casinos like MGM (NYSE:MGM), Las Vegas Sands (NYSE:LVS), or Wynn Resorts (NASDAQ:WYNN) shift their focus to the online gambling sphere, the smaller tech-focused companies will be ripe for the picking. I vehemently disagree for one simple reason; Draftkings and its competitor Fanduel are already in people’s pockets thanks to their Daily Fantasy Sports (DFS) competitions. Its online sportsbook may only be legal in seven states as we speak, but Daily Fantasy is legal in 43. The reach that this has afforded both businesses will be of incredible value as legalization washes across the country state by state, and any new competitor will be playing catch-up.
The one issue that many will have with the stock is its sky-high valuation, but this is intrinsically linked to the size of the opportunity. In the short-term, the stock may get ahead of the business. As with any company at the forefront of a burgeoning industry, investors have identified the potential and dove in headfirst. However, this shouldn’t be of concern to long-term investors who will be holding for the next 5-10 years.
“We’ve seen two years’ worth of digital transformation in two months.”
This is a quote from Microsoft (NASDAQ:MSFT) CEO Satya Nadella, and although it’s in reference to Microsoft specifically, I feel it could be applied to the entire stock market. Forward-thinking, future-relevant industries have flourished during quarantine as they accommodate for the world we’ll be living in in 5-10 years. And although it was unfortunate circumstances that brought their necessity to light, it has given us an insight into how the world will work moving forward.
Just look at Peloton (NASDAQ:PTON) stock’s recent performance as the connected fitness industry has been put on fast forward, or Shopify’s (NYSE:SHOP) surge as retailers are forced to move online. I put Teladoc (NYSE:TDOC) and the telemedicine industry right up there as one of these trends with unbound potential. For a detailed analysis of the company, check out 3 reasons why you should invest in Teladoc.
If you invest with the mindset of how the world will look in ten years time, instead of how a stock will perform over the next six months, you’re much more likely to find success and create generational wealth as an investor. These are the practices that have led MyWallSt to market-beating returns for the past five years and led to us celebrating our first twenty-bagger this week.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.
Financial Analyst at MyWallSt
Michael's first and favorite stock is Square, which he sees becoming a massive player in the payments industry and a leader in the war on cash.