Which Stocks To Buy Now

Which Stocks To Buy Now – The Shiller P/E ratio measures the adjusted P/E ratio in the format of the stock as a whole. Over the past 140 years, the market has fluctuated between highs and lows – and today, we seem to be approaching the more expensive end of the market.

And not to mention that interest rates are right around the clock all the time, and one day rates will be forced to increase.

Which Stocks To Buy Now

Which Stocks To Buy Now

After looking at something like the Shiller P/E chart, you may wonder if you should even be investing at all. Certain products appear to be overvalued, and it may be better to take money and wait for a dip.

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And it probably won’t do you much good to try to time the market cycles. It is almost impossible to time the market regularly – and the interest costs of not investing in the market can be huge:

Which Stocks To Buy Now

The companies I want to invest in are deep value companies. These are not the biggest companies, but they trade significantly below their intrinsic value. I analyze these companies one by one to make sure they are quality companies.

Typically, the deep value companies I invest in seem unattractive to the average investor. These are advanced companies, with strong cash flows and good balance sheets.

Which Stocks To Buy Now

Value Stocks To Buy Right Now

Deep value investing is like real estate. If you’ve ever watched house flipping shows on HGTV like Fixer Upper, Property Brothers, or Flip or Flop, you’ll see that they’re always looking to buy ugly houses that are cheap. Because they bought the house cheap, they can turn the house into the best house in the area and make a significant profit.

Why Deep Life? It is much better to buy a great company at a fair price, than a fair company at a great price.” – Warren Buffett

Which Stocks To Buy Now

Not many people know this – but it’s not always like that for Buffett. Buffett made the highest returns of his career by investing in fair companies at great prices.

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Investing in “smokin’ excesses” is a term popularized by Warren Buffett to describe the “fair companies at great prices” strategy he used in his earlier career. Warren Buffett learned the cigar investment strategy when he worked with Ben Graham, and used it in the early days of the Buffett Partnership to make big profits:

Which Stocks To Buy Now

Over this 11-year period, Buffett saw no low years, and averaged annual returns of 31.6%, outperforming the Dow by only 9.1% annually.

Ben Graham, known as the father of value investing, once asked how undervalued stocks reach their fair value.

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Is it advertising? Do investors get their friends to buy the stock? Are you an analyst community that carries stocks?

That is one of the mysteries of our business, and it is a mystery to me and to everyone else. We know from experience that the market eventually catches up with the value. He knows that one way or another. – Ben Graham, emphasis added

Which Stocks To Buy Now

Ben Graham found over his lifetime of investing experience that the market eventually realizes the fair value of stocks. This concept is the basis behind value investing.

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But, these stocks are all traded in deals, and I would be happy to buy more if I didn’t already have positions in these stocks.

Which Stocks To Buy Now

Additionally, these three stocks all happen to pay more than a 3% dividend yield. This is a bonus, not a requirement, for the stocks I own.

I have attached my full investment manual for each stock selection – that way you can check them out if you want to learn more about these investments. I hope you enjoy.

Which Stocks To Buy Now

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Old Lumen Technologies (LUMN) has been one of my positions since about January 2021. I wish I put a lot more into the market back in January.

I first heard about Lumen Technologies when I was at the gym listening to the Investors Podcast, a show hosted by Preston Pysh and Stig Brodersen. On the show, they showed guests who shared their investment education for LUMN, and after I did some research, I invested in the market. It’s clear that the guys on the show have done a lot of research and understand the industry well. If you are interested – here is the link to the show.

Which Stocks To Buy Now

Lumen is a telecommunications company that provides internet services to consumers. As a telecommunications provider, they perform similar services to AT&T ( T ) and Verizon ( VZ ).

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The last three years have been turbulent for Lumen. In 2017, CenturyLink and Level 3 merged, creating Lumen Technologies. Since then, Lumen has been paying off their huge debt, integrating two companies, and trying to prevent revenue from shrinking.

Which Stocks To Buy Now

On a price to value basis, this is the most expensive product on this list. The next two stocks are much cheaper, but you can see that they come with more risk.

My investment account for BG Staffing (BGSF) in one sentence – it’s a $300M company trading at $130M (used to be $120M!)

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Basically, the company provides employees for their customer services, and the company makes profit from the employee’s work.

I like the staff and the employment center because there is no capital expenditure necessary to run this type of business, and it is very profitable. The top companies in this industry, such as ADP (ADP) and Paychex (PAYX), have consistently generated impressive returns on capital.

Which Stocks To Buy Now

I like this company because it doesn’t cost much compared to the cash flow it’s making. Also – the Real Estate division of the company makes amazing profits on their services.

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Although employees in the Real Estate sector perform low-margin, low-cost work, such as property maintenance, they make about 40% gross profit, which is in line with the profit that competitors will make from employees. staff of special specialized services. This segment has great profit and room for growth.

Which Stocks To Buy Now

You may have seen the business price and been a little confused. This business is trading for only $130M. This is a huge plus for investors like you and me. Most professional investors who manage large funds cannot invest in this company because it is too small. And analysts can’t cover this industry (except for some of us on Search Alpha), because analysts have to put food on their plates – and writing about microcaps often doesn’t get the job done.

That means small companies can present even better opportunities than the big companies we are all familiar with.

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Although microcaps are more socially risky than large cap companies, they are by no means “insensitive”. Just like big name stocks, the businesses underlying these markets also provide value to their clients in exchange for money – but microcaps run in the millions not the billions.

This company is currently trading at a huge discount, and I recently loaded up on shares. This is a company that I would love to continue to invest in.

Which Stocks To Buy Now

At $13 a share, this business appears to be trading for less than half of what it’s worth. If it takes five years for the stock to reach fair value, we can make a 25% annual return from owning this company.

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If you want to learn more about this stock, you can check out my full investment blog here.

Which Stocks To Buy Now

ARC Document Solutions (ARC) trades at a low price because it is in a shrinking industry. The company provides special paper printing services to the customers.

I first learned about this stock when I was being selected by an appraiser. I was a little turned on by the market when I saw the company’s revenue decline. But when I saw that the company had a pretty strong balance sheet, with stable free cash flow – and was trading somewhere around 1-3x cash flow – I had to give this stock another look.

Which Stocks To Buy Now

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In many companies, people need to print things that require special printers. Obviously this is a smaller industry, but it is still important for some things like graphic designs and advertisements to be printed on paper.

Instead of having to go out and buy a special printer – customers can pay ARC to print things for them. This saves customers money, and makes ARC money.

Which Stocks To Buy Now

The company has a niche, mainly serving the architecture, engineering, construction and owner / operator (AEC / O) industry. They also provide document storage solutions – so customers can upload their important documents for safe keeping.

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The price of this stock is less than $6, and it is trading at just over $2. This is another stock that I have piled on, and as I earn a little more money I would like to invest more in this stock.

Which Stocks To Buy Now

Here are three of the stocks that I have personally invested in, and will continue to invest in today’s prices.

None of these stocks are correct. All these companies have some kind of problem, such as a decrease in income (ARC and LUMN), temporary winds from Covid (ARC and BGSF), they are not covered (ARC and BGSF), and from all companies- these work some general skepticism. . of Wall Street.

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But the main point behind deep value investing is that if these companies are perfect – there will be no opportunities. The companies would have traded at fair value.

All these businesses have

Which Stocks To Buy Now

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