I entered US stock market, bought 3 companies
Why am I enetering US stock market?
Years ago, I made some analysys of some US companies like Apple and Facebook using Philip Fisher and Warren Buffett quality criteria and I loved these two stocks. Nevertheless, I was always discouraged by permanent rise of US equity market (until recently S&P 500 had beed growing for as long as 9 years!). Now that S&P500 and Nasdaq are after more than 20% drop off its high I decided to take a close look at this 2 companies in particular.
Here are 3 companies I chose.
Apple bought at $147.28
Apple lost about 37% off its all time high and in my opinion it is oversold too much.
click to enlarge:
As you can see on the chart above, price of Apple bouce off its weekly SMA200 (simple moving average). The similar events happened in 2016 and 2012 and they were the excellent opportunities to buy the stock.
On fundamal side - P/E is 12,48 and ROE = 47%!!! No woder Apple is the bigest position in Warren Buffett's portfolio. Debt is just 1,32 EBITDA and they still got enormous stockpile of cash.
Facebook bought at $137.16
Facebook also lost about 37% off its ATH. And just like Apple, the selloff was stoped at weekly SMA200!
click to enlarge:
What completely stunned me is that FB has absolutely no debt. I like companies with very little debt but seriously I have never seen any without any leverage at all!
P/E is 20,8 and estimated for this year is 18,5 and ROE is solid 25,5%.
Take-Two Interactive bought at $100.54
Owner of Rockstar studio is 28% off its all time high. Unlike Apple and Facebook, Tak-Two has way to go if it is going to meet its weekly SMA200, but I belive that the last low would stand.
Estimated P/E is 21,7 but I think that analysts underestimate revenues from Read Dead Redemption 2 and future Grand Theft Auto 6.
The company has no debt - I am shocked that I was able to find as many as 2 big US companies with no liabilities!
I invested on US market for the first time in my life and I did not worry about possible bear market. In my opinion, the current correction is similar to 1987 drop of 25%, which lead to another 13 years of solid gains.
My master - Warren Buffett often says "be greedy when others are fearful" and now I think it is perfect time to take a risk, especcially since the companies like Apple, Facebook or Take-Two are so much undervalued.
In order to invest in USA, I am using XTB investing account - if you want to open yours, please use my affiliate link below (choose your language after you land on the mainpage) :
Best investing regards,
Albert "Longterm" Rokicki