Subtitles section Play video Print subtitles In the last video, we have talked that a crisis is nothing but merely a transfer of wealth from one group to another. And the stock market is probably the main method that billionaires are using to take advantage of the crises. Which you can do as well. Let's find out what are the best companies to invest in the middle of this crisis and why. 1. Coca Cola If there is one company that would definitely survive this crisis and even keep rising is Coca-cola. In fact, the crisis isn't in any way stopping people from drink cola, especially addicts. Guess who is the major investor in Coca Cola, warren buffet. Why! We have done an entire video on that but in short. In order to find out if a company is worth investing in or not, you have to look for 3 traits. And based on these traits or questions, if you want to call them, you can make up your mind. First, the product and the business model should be as simple as possible. Because it will get easier to predict the future of the company. Take an example of coca-cola. 10 or 15 years from now, not much is going to change, it's going to be the same coca-cola, maybe with a different design or marketing, slightly different types, but it is going to the old same soft drink. So it is easier to predict if the company is going to stay relevant years down the road. Secondly, will the customer buy the product again? And why? A great product is when your clients would keep coming back for it, every day or every week or even every year. Like bread, if you are selling bread, you would expect the exact same customers to come back tomorrow or next week over and over. Regardless of the circumstances. Does coca-cola ticks this box? Definitely! Some people can't even spend the day without at least having one can. And finally, how strong is the brand name! People have the tendency to buy from the companies that they feel connected to. Shelves are filled with so many soft drinks, but you easily recognize coca-cola and a few others. And that's why even though the stock price is significantly down, it will deifnelyt rise back to where it was and keep increasing over time. Of course, you still have to read their financial statements, but coca-cola has proven to be one of the best investments ever. Buffett once said that he would never ever sell his coca-cola shares. 2. Berkshire Hathaway B The second stock that must definitely be on your list is Berkshire Hathaway. Its basically a holding company that invests in other businesses, by the way, it even owns entire businesses like Cees Candy. So if you want to invest in all the companies that warren buffets invest, you just have to buy Berkshire's stock. And guess what?! It has suffered tremendously in the middle of this panic. And no-one understands the market better than Buffett, all the companies he has invested are great stocks, and they are all will definitely rise back. In fact, a huge chunk of Berkshire Hathaway's portfolio is Coca Cola, because every business that Buffett invests in is similar in one way r another to coca-cola and has the three main traits that we have talked about earlier. Of course, the stock price is beyond what most people can afford, but they have class B shares, which are quite affordable. 3. Delta airline/ southwest airlines Since we are all advised to stay at home. The transportation industry is suffering more than others. Entire fleets of planes are stuck in the airports because no one would risk to fly. So Delta airlines or Southwest, for example, are going down. Delta airlines were down by 60 percent. But it's clear that they are slightly recovering already. We are not sure yet, how long the travel ban is going to continue, but I am sure sooner or later, the planes will dominate the skies again. Which means these stocks will get back and probably even rise further. 4. Airbus / Boeing And because the aviation industry is suffering, the demand for planes is down or none at all, which means that Boeing and Airbus are taking a strong hit. Due to the virus, entire countries closed down their borders. The thing is, right now, we don't know when exactly airliners are going to get back to businesses, maybe within a few weeks or months or even a year, who knows. however, the aerospace industry is competitive, not everyone can start manufacturing planes or rockets unless you are from a different planet like Elon musk, On top of that, these 2 companies receive multiple government contracts to develop even military planes. So they are safe for many years ahead. Of course, Boeing had an issue with their latest plane 737 max, and its definitely going to impact their line of business and financial statements but overall, it is a massive corporation that had been in the market for decades, and at least for the next few years, it's going to be leading the industry, but if you do not trust Boeing, you have the Airbus, its stock has plummeted significantly as well. 5. Apple/Microsoft When it comes to tech companies, I guess Apple and Microsoft are the best safest investments one cam make. Both of these companies crossed a trillion-dollar valuation and were raising gradually. By the way, for the last couple of years, Buffett aggressively began investing in Apple because apple has a unique business model. It might sound creepy to compare apple to coca-cola, but it is, in some ways similar. Apple successfully marketed the iPhone as the product you have to come back for, every September. I know that iPhone sales have been slowing down recently, but over the years, they had successfully kept their profits rising. They increased iPhone prices to over a thousand dollars, and people kept coming back. Apple might not be releasing dozens of phones and laptops every year, but every product they get to the market is so beautifully designed that people keep coming back for them. It ticks every box of a great company. So once we are done with the virus, the stock price will recover 100 percent. And as far as I see it, it will probably rise even further. And both of them are now down by 30 percent. 6. Tesla I am a big fan of Tesla, but it is really difficult to make a judgment. Honestly, I had never thought that the stock price could go as high as almost a thousand dollars before it crashed. What I don't like about Teslas stock is that it's too connected to Elon Musk, don't get me wrong I am a big fan of Musk, and I think he is genius, but his actions could be unpredictable therefore making the stock price unpredictable. Maybe that is his strategy to raise money and continue the great work he is doing, but as an investor, it's not so good. however, since the stock price almost crossed a thousand dollars, maybe it will again. And if it does, it's a great opportunity to invest in Tesla now, since it has suffered greatly in this crisis. 7. JP Morgan/ Bank of America Another sector that seems promising is the financial market. This industry is definitely controversial, and it's difficult to be too confident in it. However, some financial institutions have been in the market for over a century and have only grown. Take an example of JP Morgan, we have an entire video on how JP Morgan became the largest bank in America, and it seems like its growing. So the 40 percent drop it had experienced in the last weeks is temporary, and it is getting back for sure. It is a perfect opportunity to double your money in a safe investment. And the same goes for Bank of America, in fact, even Buffett himself significantly invested in the bank of America. 8. S&P500 But if you are the type of person who is scared to invest in one specific company, I mean, who knows, there is always a risk for any company to go broke, you can't be fully confident. But what you can assure yourself is that the economy will get back to its knees. Which means the S&P500 will get back to its prior position. In fact, it is already recovering. It crossed 3400 before the panic, just by getting back to its initial position, will make it a worthy investment. I am sure that many of you are considering to invest in companies that are working on the vaccine because the entire world needs it now. And the race for the vaccine is fierce. However, you have to have a deep understanding of this industry in order to make a move. Vaccines aren't easy to develop, they can take years and billions of dollars. But the companies we have discussed are mostly likely going to recover and get back on track, which presents an excellent opportunity to make aback. Now, before you make any investment, you have to do your own research. And make up your mind. Make sure that your decision isn't solely based on a YouTube video, and you understand a thing or two about the market and at least know how to analyze financial statements before you throw your money. So I will leave a link to a simple but really great course on skillshare about the stock market. If you want the stock market to be explained to you in simple and direct words, then you have to watch the courses, its short, animated, and straightforward. The link will be in the description; in fact, you will get 2-month free access to skillshare so you can have the course completely for free if you use the link down there. Thanks for watching and until next time.
B1 cola coca cola coca stock stock price buffett What Stocks To Buy To Get Rich During This Pandemic 25 3 Summer posted on 2020/08/21 More Share Save Report Video vocabulary