My "BUY" Watchlist right now - 12 stocks and sectors - Paid Subscribers

WatchLists

Over the years, I’ve always been a bit sporadic with my watchlists. I’ve found that I add stocks, journal a potential entry and then get side tracked or I talk myself out of it. I am not someone who likes to have a HUGE portfolio of stocks that I own. I like some ETF’s and maybe 15-20 additional stocks of which the majority are buy and hold style stocks. Think Apple ( AAPL 0.00%↑ ), Microsoft ( MSFT 0.00%↑ ), Google ( GOOG 0.00%↑ ), etc. As a large cap tech investor, these are stocks I’m comfortable with.

What I’m typically NOT comfortable with are small cap stocks that are typically the ones that run. Right now in the market, I think we’re near a bottom and if you can find good beaten down small cap stocks (there are quite a few based on the Russell under performing by A LOT), I think these could provide a big leg up.

Some of those small cap stocks that are on the list are the Top 2025 Stocks from Seeking Alpha. Steve Cress just did an update on those stocks here if you’d like to read his analysis of them. I chose 5 on my current watch list.

What I like to organize my watch lists around are a few key categories:

1. MUST BUY - If these pull back 5% or 10% - I buy with no questions asked. I have this list and you should too. These are your favorite long term stocks. There should be no more than 5 on this list. Mine is usually 2-3.

2. MAY BUY - If these pullback and then show a solid turn around, I’ll look for an entry because they are good companies with good products and good profits with good management. I want to own them, but they will be smaller positions to start. This will usually consist of around 5-10 and I don’t always buy them. If I own an ETF with exposure to them, I’m usually happy.

3. WATCH THESE - This list can be long and there are many of these below. If you’re seeing these start to run, they might be a good buy if they show any pullbacks during a bull run and I can always add to them.

Remember too that before I buy, I have a strategy for each of these. Is it a technical trade? Am I holding for 1 year for long term capital gains? What’s the profit I’ll sell the stock at or the loss I’m willing to take? And what’s the thesis for the stock? That’s going to determine that if the actual story changes from the thesis, then I’ll sell the stock.

The complete list with charts, analysis, reasons to buy and how I’m finding an entry point