Today we’re talking stocks! And I’m going to
give you my top three picks for December of 2017. Stay tuned. Welcome back to white board finance. My name is Marko and I’m here to help you
master your money and build your wealth. Today we’re talking stocks. But before I get into that I want to get into
a couple reasons on why you should even be listening to my advice in the first place. I’ve been investing in the stock market since
I was 18 years old and I hate to say it but I’m now 29 so I have had about 11 years of
experience. The good thing about that is that I’ve experienced
both bull and bear markets a lot of people that have been investing over the past five
six seven years. They’ve only known a bull market this bull
market has lasted about nine years. And this video is being recorded at the end
of November of 2017. So essentially people think that they’re geniuses. They’ve never taken a loss. Well it’s been pretty easy to be a genius. The past nine years I remember the losses
from 2007. I remember the losses from 2008. And I know how to compensate for that and
how to adjust my portfolio accordingly in terms of living through both those markets. I describe myself now as somewhat of an aggressive
investor. I do enjoy growth stocks but at the same time
I am somewhat risk averse. So I’m the guy that’s going to look for doubles
and triples. I’m not necessarily going to go for those
home runs or Grand Slams even though that have happened in the past especially over
the past couple of years with tech stocks. I’m not going to be chasing those gains. I like to look for medium to long term plays. And those are the plays that I’m going to
be talking about today. Stay tuned guys. Let’s start with number one. Home Depot. Now you may be thinking that this definitely
isn’t the sexiest pick in the world but I’ll tell you why I think it’s a great pick. Home Depot is the world’s largest retailer
of home improvement goods and they have about 2300 stores in the United States Canada and
Mexico. I’m familiar with Home Depot because I’m a
real estate investor myself. I have three rental properties that received
significant improvements or they were built ground up using most material from Home Depot. I have a lot of relationships with subcontractors
and builders and 90 percent of the time we end up buying stuff from Home Depot because
it’s the best quality and it’s the cheapest. Pricing is cheap because of scale. They’re almost like a Wal-Mart where they
can afford to negotiate prices down with all their vendors the vendors are in their stores
because they know that it is selling more volume so they give their products at a lower
price to Home Depot. Their main competitor is Lowe’s who in 2017
did about sixty eight and a half billion dollars in sales. But to put that into comparison Home Depot
did about a hundred billion in 2017. So that’s a significant difference. I feel like Home Depot stock price is fairly
valued because right now it’s at a 24 point one price to earnings ratio. The nice thing is that they actually have
increased their dividend year over year. Right now it sits at about 2 percent. And if you actually choose to use the DRIP
program which stands for dividend reinvestment program you can actually build up your shareholdings
in Home Depot pretty quickly here guys. Home Depot has consistently surpassed the
industry average and revenue growth. Net income growth. Operating margin net income margin and return
on assets. So take a look at this chart you can see that
every year they’re beating out the competition pretty significantly. This keeps them an industry leader but you
also have to realize that since Home Depot is a market leader in a mature industry it
makes it hard for the company to find new growth opportunities. As I mentioned earlier when I started the
analysis on Home Depot this is not going to be your 20 30 percent gainer. It’s not going to be an explosive stock because
it is an industry leader and it’s been a mature industry leader for a number of years now. However it’s going to be a solid single base
hit or a double at best. But it’s a great mid to long term hold for
2017 and throughout 2018. Number two Nvidia Nvidia is a really exciting
company and a lot of people are drawn to these tech companies that have a lot of potential
in the future. The reason they’re so exciting is because
they play in four really cool segments. The first segment is gaming. They improve graphics through their GP use
essentially what they do is they produce graphics cards for videogame platforms desktop computers
and pretty much any other component that needs graphical processing. The reason this segment has exploded so much
is because of esports. There is now 350 plus million users in sports
and if you don’t know what esports is this is essentially videogame competitions if you
will. So these are now digital athletes. But in order to power those video games at
the highest level and at the highest frame rates they need good graphics cards and this
is where Nvidia comes into play. Number two is their professional virtualization. This one I don’t have Memrise to read up my
paper here apologize. Essentially professional virtualization is
enabling companies to design and manufacture products efficiently and to create highly
realistically digital content. So what this does is that more and more developers
are using VR and their content which requires professional AGP use. The third business unit is data center. So Nvidia supplies all the major cloud providers
with its use in these high performance Guz enable thousands of artificial intelligence
developers to rent computing resources by the hour. And they test their apps models and services. These virtual servers and their fourth business
segment is automotive. Believe it or not Nvidia is actually involved
with artificial intelligence for driverless cars. So this could be a huge opportunity in the
future. Check out this graphic you can see in 2016. The global games market is about a hundred
and one billion dollars. Keep in mind that sales of the entire home
depot for 2017 as well. If you want to make that comparison. But take a look at how it’s growing from 2017
all the way to 2020. This is essentially going from 100 to 1 billion
dollars. Fast forward five years later you’re almost
that 130 billion dollars. This is a huge opportunity for Nvidia going
back to self driving cars. I really feel that self driving cars are going
to be the future. Nvidia already works with the major automotive
companies such as Tesla Audi Mercedes Benz and Toyota. They also work with Tier 1 suppliers like
Bosch and mapping companies like Tom Tom. They’re supplying many companies in the automotive
space and according to their CEO they’re going to have huge revenues and several thousands
of dollars per Robow taxi. So I know that sounds like some futuristic
stuff you guys but it’s a reality that we’re going to have to get used to. So let’s take a look at Nvidia’s fundamentals
their income statement has pretty consistently grown over the last four or five years. You can also see their balance sheet has had
a little bit of a rockier road but is definitely still on the uptrend. And also their cash flow statement has increased
as well over the years. One of the biggest risks of owning Nvidia
is that the landscape or the environment is always changing. Technology changes at the speed of light. However it does take many years to develop
their GP use. So this could actually be somewhat of an imbalance
or maybe even be a lag in technology versus what people actually want and need. That’s one of the biggest risks I see for
Nvidia but overall there is huge upside with artificial intelligence self driving cars
and also a lot of visualization which we mentioned earlier. So ultimately this is another one of my picks
for December of 2017. Going into the medium to long term hold for
2018. Number three Microsoft. My third and final pick for December of 2017
is Microsoft. I truly believe in this stock because I work
for one of the biggest resellers of Microsoft in the entire Midwest if not the biggest reseller
and we are a certified Gold Partner with a lot of their products. So actually work on the networking side. So I sell servers data storage Azure things
like that. So this is a stock that I’m very familiar
with. Microsoft always gets overshadowed by the
other failing stocks things stands for Facebook Amazon Netflix and Google and they’ve seen
a huge amount of growth over the past two years. And there are also a great dividend champion
in my opinion. They pay a great dividend and they’ve increased
that year over year. The reason I think that Microsoft still has
more growth and it’s a good dividend play as well is because they’re flying high on
their cloud growth. So let me read this to you guys in quarter
for earnings call Satya Nadella the CEO said that the company’s commercial cloud annualized
revenue run rate that’s ár are. So that stands for how much recurring revenue
you have every year now exceeds eighteen point nine billion. That’s on course to surpassed their target
of 20 billion and commercial cloud are in fiscal 2018 in azure. So if you don’t know what Azure is Azure is
Microsoft’s Virtual servers so if you’re a business and you want to put your information
on a server they don’t physically own that whole Microsoft Azure provides. It’s similar to Google’s cloud services and
it’s similar to Amazon’s Web Services. So in azure they have a strong growth catalyst
Azure revenue grew 97 percent year over year and quarter for 2017. So this puts Microsoft as the second biggest
cloud player I believe it’s second to Amazon Web Services. Microsoft’s market share stood at 11 percent
at the end of quarter two and Amazon Web Services is right around 34 percent. So what I will say is that I’ve been on these
sales calls for Microsoft. I know exactly how their reps are getting
compensated their reps are getting compensated so much more for selling cloud services than
on premise on premise is actually when you install save for example and ERP software. So software that helps run peoples businesses
on their servers. Microsoft is compensating their sales reps
so much more to sell cloud services more than anything. So they’re really making a push towards the
cloud which I think is the future in my opinion and I work in this space. So take a look at this infographics. You have Amazon leading the way with Microsoft
right behind. And then you have IBM and Google and then
essentially the rest of the market. So if you don’t understand Microsoft’s business
model they don’t only sell Windows if that’s what you’re familiar with. They sell a huge enterprise resource planning
software as they sell as Azure which is what I sell. And they also sell office 365 which is essentially
the cloud version of Microsoft Office. Ultimately I think Microsoft is going to end
up somewhere in the 100 dollar range for 2018 which is pretty significant growth from where
it’s at right now. Barring any huge corrections. So I think Microsoft will be a great medium
to long term hold from December 2017 all throughout 2018 if that dividend keeps getting raised
and the stock price keeps going up. Hold on to that puppy and use the drip program. And there you have it everybody. This is one of my first videos on picking
stocks. So please go easy on me with the like button. If you got any value out of this video whatsoever
please subscribe below. I do have a question of the day for you what
stocks are you guys picking for December 2017 and beyond. I’m really interested to hear that. So please leave your comments below. Just a heads up I do use Robinhood as my trading
app. So if you want to learn more there will be
a link in the description below. Essentially Robinhood is a commission free
brokerage and they also have no minimum balances as well. So if you’re just getting started with investing
Robinhood is a really good application to start on. It is mobile only and they don’t offer a desktop
version yet as of this recording. But I think they will hear within the next
couple of months. So good luck investing guys and have a prosperous
day. Hello. I’m just finishing up I’m teaching the people
how to make money. I recommended Home Depot Invidia and Microsoft. That’s very good. What do you think about this. My love. Thing is very good. And you did some research into all these companies. C trust my judgment. Thank you my wife trust my judgment. Unbelievable. OK I will love you. Bye by. Bye. My wife trusts me. This is good.

35 thoughts on “3 STOCKS TO BUY IN DECEMBER 2017”

  1. 100% agree with you about Microsoft. I've been a long term investor since I was a baby (haha thanks mom!). Side note, the end of your vidoes crack me up:)

  2. I like your sexy comment, because everyone goes for sexy, and yet the old and boring actually make just as much money, if not more than the sexy. I’d say look at Costco, they’ve done great this month and with Christmas coming they’ll do great this December.

  3. Your wife is a smart woman! That’s great she trusts you on those choices! I have to highly agree based on all the facts you provided!

  4. I bought Nvidia earlier today before seeing this, getting into the nasdaq dip. Short term i feel its possible for it to drop quite a few points, but long term i am rock solid in my faith in Nvidia, and i plan to buy more if it goes down given the same fundamentals

  5. Lot’s of good advise to follow, specifically in terms of a long term strategy.. This method helps provide more stability for a young individual and eventually a growing family.. keep them coming!!

  6. $HD is a solid pick. However my fear for the long term is $AMZN trying to come in to disrupt. If anything, I could see $AMZN trying to buy $LOW to compete with $HD in the future.
    $NVDA is a good pick as well – a lot of growth I think in 2018. Leaders in AI and I don't see that changing anytime soon.
    $MFST again a solid pick. Lots of growth in the Cloud here and again, 2018 should be a huge year for them.

    Great video overall!

  7. Hey WhiteBoard Finance. Looks like we're in the same boat, new and putting out similar video's. Good luck with growing your channel!
    Financial Fitness: Personal Finance & Investment Videos

  8. Just discovered your channel. Liked and subscribed. I am heavy into FANG stocks. Looking to diversify. HD sounds like a good purchase. I am into "buy and hold".

  9. I completely agree with Nvidia, literally started getting into stocks this recent summer, was browsing a store for a new laptop, got one with their Graphics Card and basically fell in love with the company. I looked into their products and then purchased their stock as one of my 1st few, and it's prob been the major lifesaver to my portfolio right now. I'm watching your video with their graphics card right now haha. Wondering do you have an opinion on MU and SQ? Other Techs I'm looking at esp with the recent dip. Great Video btw, liked! 🙂

  10. Great video! Definitely agree with those picks. My top two for 2018 are OLED and TSLA, with AAPL being a close 3rd. Then about 20 others tied for 4th lol.

  11. Hey WhiteBoard Finance, just came across your videos and I really enjoy them. I also make investing videos but I am still a small youtuber. 🙁
    Well Done!

  12. Just subbed!! Want to learn all I can from you buddy !! It’s the time to take action and stop being scared. Lets go buddy I wish you the best with your Youtube Channel -Tay

  13. Just checked them all out to see how they did in December, good picks! I will be following all your videos and appreciate the time you take to help us noobs out.

  14. I really like Home Depot & Microsoft! These are household names that can expect solid growth, and as far as I can see, are not going anywhere anytime soon!
    -Financial Freedom For Millennials Channel
    Subscriber Goal 154/250

  15. Let me stop you right there. Success in the stock market depends on how much you can afford to loose before folding unless you have a crystal ball. ( Your broker does.) Better with an EFT that doesn't rely on any one industry. Nothing is written in stone! Remember. Genius is a rising market.

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