The seemingly endless stock-market volatility may tempt the average investor to remain on the sidelines, but Forbes.com recently reminded the savvy-minded that such a time is “also the opportunity to pick up outstanding bargains.”
Focusing on solid dividend-payers to fundamentally sound growth stocks, seven of Forbes’ top investment newsletter editors identified 12 of those opportunities.
Here is a look at three of the picks:
- Kraft Heinz Company (KHC) was selected by Richard Lehmann, Forbes/Lehmann Income Securities Investor. KHC is the fifth largest food and beverage company in the world. Among KHC’s brands are Kraft, Heinz, Jell-O, Kool-Aid, Maxwell House, Oscar Mayer and Weight Watchers. KHC is on the prowl for a blockbuster deal and has sufficient equity financing from its largest backers, Berkshire Hathaway, which owns roughly 26.5% of the company, and 3G Capital, with 22% ownership, Forbes explained.
- John Buckingham, The Prudent Speculator, picked Walt Disney (DIS). “Disney has been a ‘monetization machine’ (as coined by an analyst) under the leadership of Bob Iger and I see little sign of that waning,” Buckingham said. In addition, the Disney film studios have been able to churn out plenty of winners that have dwarfed the inevitable losers, while the theme parks/resorts remain major money makers.
- George Putnam, The Turnaround Letter, suggests Japan Airlines (JAPSY). “Newer, more efficient jets replaced the dated fleet, cargo operations were folded into the passenger fleet, and the company changed its marketing and pricing to attract more profitable customers and improve its image,” Putnam said. “Healthy economic growth is also boosting passenger volumes and pricing. While profits have averaged more than $1 billion, the stock remains weak. Trading at only four times Ebitda, Japan Airlines shares could be ready to take off.”
To be sure, the most successful investors aren't "afraid of the big, bad bear market," Newsmax Finance Insider Andrew Packer explains.
"Thanks to two big rallies in 2018, being a nimble investor throughout the year ended up making the year pretty profitable. At least that’s how it unfolded for myself and my subscribers," Packer explained.
"For instance, in the Financial Braintrust, we closed 19 trades in 2018. 17 were winners. One was a loss. One involved being put shares, so if this were baseball that one would have an asterisk next to it. That’s still an 89 percent win rate," he said.
"So what’s the secret to my success? There’s no secret. It really and truly does come down to a few basic principles," he said.
"Those principles balance the science of investing (the stodgy financial statement-reading part that puts many to sleep) with the art of investing (the part that often gets people overly invested emotionally where they make big, dumb mistakes)."
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