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Well good day subscribers and welcome in today i want to do a special video on how i would deploy a million dollars into the stock market okay would stocks i would actually buy with that million dollars and for today’s video we’re gonna assume that this is my only money that i have in the stock market so it’s not like i have a bunch of different stock market

Accounts we’re gonna assume that i just have this million dollars that’s given to me or i made or whatever it’s sitting there and i have to invest in the stock market and i kind of want to give you like the amounts of money i would put in each stock in each individual stock i would buy why i would buy those particular stocks so i hope you guys really enjoy this today

Some people will say if they have a million dollars they would just put in an index fund or something like that that tracks s&p or the nasdaq or something like that and that’s fine you could probably make your 8 percent or so a year maybe make 80 grand a year off that there’s nothing wrong with that for me i want something more aggressive i’m always looking to

Build bigger and bigger and bigger there’s really no amount of money i can like think of that i’m like i would just stick all that money an index fund like everything i want to grow over time alright so i hope you enjoy this video today hit a thumbs up if you enjoy these types of videos by the way if you want to check out any of my stock market courses membership

Or anything like that or they’re all linked down there in the description so if you’re interested in that you can check it out so let’s start out here at the top so my first stock my biggest stock i would put about a quarter of a million dollars in okay so that’s about 25% of the portfolio i would be putting in this stock and the way i think about this first stock

Is i want a stock that definitely represents good upside when i think about good upside i’m thinking like this stock could possibly double or maybe more than double over the next three to five years that’s the type of stock i’m looking for as far as upside on downside i definitely want a stock that has very little downside risk as far as like their business model

Becomes irrelevant over the next three to five years or the company can’t grow or anything like that okay so i’m trying to stay away from those type of companies and also i’m looking for a company that doesn’t have like some type of ridiculous forward p/e ratio on and like in the hundreds or something like that okay so that’s the type of company i’m looking for so

For this one what a company that would meet my criteria for this would represent as facebook ok facebook is kind of the perfect stock for this first stock because it represents a stock that has a fairly low forward peon i think we’re at a 18 or 19 ford peon this company they have massive growth potential still for this company over the coming years when you think

About all the different platforms they oh not just a facebook platform but also instagram also whatsapp also a facebook messenger also oculus also like you know other niches are going into based upon different platforms so you can think of something like facebook marketplace you can think about instagram shopping which is coming you can think about instagram tv you

Can think about a lot of different things that facebook’s gonna be doing in the future that are gonna build bigger and bigger platforms off of these other big platforms they’ve already built ok so when i look at facebook i see a massive growth potential there i also see limited downside with this stock but when i think about it over a three to five year span and

The reason being is is right now we’re in the eye of a storm for facebook everything is just negative news around it everything’s just bad and bad and bad okay so we have that eye in the storm a situation going on right now when i look out over the next few years i think slowly but surely that will dissipate i think there will always be things there and the way

I think about this business is it’s unbelievably profitable advertisers have to be there and want to be there because it gives them the best bang for their buck ad rates should go up over time it really just meets the criteria i’m looking for for a number one stock over the next three to five years so facebook for that reason it would be the number one position

Here now something you’ll notice is between the number one and number two positions this represents around 40 percent of portfolio and that’s a number that i have come to over time okay there was a time when i would invest 40 50 60 70 percent just in my number one stock alone never mind you know a total amount between the top two stocks what i’ve found over time

Is the bigger amounts of money the more you kind of want to diversify alright so i definitely want to still play you know some of these stocks i believe in the most a big time you know have big money in them but not so much that if one of these stocks goes bad over the next few years and i screw up and i made a bad decision and nothing pans out the way i thought

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It was gonna pan now i don’t want it to kill the entire portfolio whereas if you have 50 60 70 percent of your money just in one stock if you were wrong about that one stock which everybody is you know there’s definitely over the course of time everybody’s gonna be wrong whenever that time comes and you’re wrong you’ve got 50 60 70 percent of your money in that

One stock your whole portfolio is decimated so that’s how i kind of get to these numbers as far as the big dogs no the second the stock this is a stock i put about one hundred and fifty thousand n and the way i think about this stock i’m looking for a lot of the same characteristics as that first stock okay but with the second stock i want something that is even

Safer than that first stock or at least i feel is even safer as far as their business model over the next three to five years and i want a stock that would likely pay a dividend that’s my ideal goal there okay something that pays a dividend and something that i feel like might maybe it doesn’t have quite as much upside but at the same time you know the chances

This business model would be eroded over the next three to five years is is almost impossible everything’s possible but it’s almost impossible and for that stock what represents that stock to me it’s good old apple okay apple represents us a hundred percent for me and the reason being is you think about their iphone business very consistent business like people’s

Iphones break or they want to get something new they get a new iphone you think about the asp s4 iphones are just going up and up and up alright you think about services that’s growing at a 30% plus clip and that’s just a massive profit engine for the company they have their ipad business which is very consistent there mac business which is very consistent there

Are accessories business which is growing very fast you can think about your you know the ear pods you can think about things like apple watch a lot of those type of things okay and then never mind future products alright so the way i look at apple’s business model it’s about as solid of a business model you can possibly have literally out there in the entire

World okay when i kind of look at their business model so and also they pay a dividend they should be likely upgrading that every single year by quite a bit so when i look at apple it kind of meets that perfect criteria for my second stock so between facebook and apple 40% of this million dollars is in there about $400,000 all right now for these next three stocks

These next three stocks make up a total of 37 point 5 percent of the portfolio and for these next three stocks i’m looking for growth okay i’m looking for companies that are fast-growing companies that are you know have a lot of trends going for them that are very very positive that those are type of businesses i’m looking for alright so for this first one the the

Company i would put here in this category is ali baba okay ali baba now all three of these companies you could say have a little more risk than what these companies do but they’re also expected to grow much much faster when you look out over the next three to five years ali baba this is a company that i feel if this was not a chinese company this would be arguably

The second most valuable company in the world right now right now alibaba is trading a little under a half a trillion dollar market cap i think this would be a trillion plus dollar market cap if this was an american corporation putting up these type of numbers but because it’s a chinese corporation there’s a lot of fears about china and their economy could be

Weakening there’s just a lot of distrust in the chinese numbers and things like that and so for that reason alibaba you know technically i guess has more risk but i can guarantee you if this business model was an american business model it would be trading at a ridiculous premium to where it’s trading at right now okay so alibaba want to think about you know all

Their their platforms that are growing as far as the retail side when i think about new retail when i think about that cloud business when i think about delivery they’re doing so many huge things out there in china right now and trying to expand that business into a worldwide business when you think about aliexpress and some of those kind of things when you think

About ant financial and what that’s doing there are so many massive growth levers for this company that this couldn’t should be a stock that grows massively over the next three to five years and then pretty much regardless of what happens in the chinese economy like if the chinese economy was just stagnant for the next three to five years like alibaba should still


Be able to grow at a very rapid clip because they have that many growth levers for that company right now all right the next stock down here looking for another grow stock this one’s a really really small market cap one and it kind of represents a growth you know a stock that has so many trends going forward in the future so well-run and this stock would be cirrus

Logic okay cirrus logic is a very small market cap company about a little over two billion dollars their semiconductor company all right and they have some great things going for them because they’re all about audio and voice alright that’s that’s their specialty if you look at the tear downs of any iphones or things like that ipads are find a bunch of cirrus logic

Chips in there that are their amplifiers or amplifiers for biometrics they actually give you you know feedback in the phone or we’re talking about smart codex things like that they’re gonna be expanding into the microphone business doing a lot of big things there so when i look at cirrus logic it represents a massive opportunity in front of that company they’re

Really the only semiconductor company in the world that has fully focused on audio and voice and when you think about people getting out amazon alexis and aaron are echoes things like that google home the apple home pod all those type of devices that are going into the home all have ways you can speak to them right and they all need microphones and they all need

Audio chip center and amplifiers and things like that whose we in a very good position to grow massively from that cirrus logic when you think about wearables when you think about apple watch and wearables like that headphones that are just getting more and more popular wireless ones all these represent massive opportunities for cirrus logic over the next three to

Five years so when i look out at the way the world is going the way the tech world is going audio voice all this stuff becoming more and more important your phone becoming a louder and louder device all those type of things right when you put it on speaker you want to play music from it this all benefits cirrus logic in a massive way so it puts a company in such a

Good position of power for really you know capitalizing on this major opportunity in front of themselves alright so saris logic would represent that next one here we’re looking for another growth stock and for this growth stock it’s it’s honestly my best stock i’ve had in 2018 that i’ve invested in and this company is callaway alright callaway ticker symbol eli this

One represents a huge upside is as far as golf goes right now golf has bottomed and is really starting to come back in a massive way and you have tiger back on tour playing very good golf getting a lot of people interested in golf again as far as watching on tv when they watch it on tv they go buy clubs they go buy golf balls they go play you know golf and things

Like that and so this is all just helping callaway’s numbers and if you look at cowboys numbers over the past year or so they’re strong and they’re actually getting stronger they doubled their just to eps last quarter guys year-over-year that’s amazing okay and they also have a 15 for almost 15% ownership stake in top golf which is expanding not only all around the

United dates but internationally as well so that that investment there is just becoming a bigger and bigger value proposition for buying callaway stock so when i look at this callaway represents a great growing company great management team and a lot of opportunity in front of it alright so those kind of represent the the growth names that maybe have a little more

Risk in the first names up there alright but all of them have massive opportunities in front of themselves over the next three to five years now for these next two stocks these next two stocks make up 20% of the portfolio total one hundred thousand a hundred thousand these next two stocks what i’m looking for is i’m looking for stocks that as the american economy

Grows these types of stocks end up doing very well over time alright and so the first one i kind of think of is i think about i want i want a home builder okay so a home builder as america does great over time people buy homes that’s just the way it goes okay and so when i look at this i see a company like toll brothers that is gonna benefit in a huge way over the

Coming years toll brothers is the highest end home name out there they’re the highest end home name and there’s just a great run company there’s a so well run they they understand to have the best locations for their new homes going in they understand the school system they understand the design and the layout the most modern layouts you could possibly imagine and

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Whatnot and they get a big premium for their homes and they compete at the high end so they’re not worried about competing against all the other guys that are competing at the $200,000 $300,000 price levels these guys are worried about the eight hundred thousand nine hundred thousand million plus dollar homes that’s toll brothers bread-and-butter there so when i

Think about you know betting on the us economy over the coming years i think about betting on toll brothers next one up here another stock well if america is gonna do very well over over time right a company that could be in a very good position to benefit from this would be us steel all right now us steel used to be a company that was you know i could almost say

At a massive disadvantage because the chinese would make the steel they would dump it you know in different countries they would send it over the united states you’d be able to get steel for very cheap and pretty much the entire american steel economy had been devastated over the past let’s say three or four years all right if you look at what the steel because

We’re doing a lot of them are shutting down their factories it just wasn’t possible for them to really make money in the steel industry however this pet this year 2018 we’ve had massive tariffs come on to the chinese steel industry and a lot of the other countries alright and what this has done is this has raised the price of steel and it’s put u.s. steel in a

Position of actually power now and it’s put them in a position where they’re restarting a lot of their factories and they’re making a lot of profits now okay so when i think about as long as there are tariffs on the chinese steelmakers and some of those other countries right i think as long as they’re there those tariffs are there a company like us steel is gonna

Benefit in a massive way and we have seen that from us steel’s numbers this year and they’ve just been up massively in the entire year and as long as those tariffs they aren’t this is a company that should do very very well into the future now if those terrorists ever got taken off it’s probably a stock i’m not that interested but as long as those tariffs are on

If you’re a manufacturer of any type of products out there and you’re looking for steel you’re gonna you’re gonna probably go to us steel at the end of the day alright so that’s going to represent 20 percent of my portfolio we’ll call it the as american goes these companies go toll brothers in u.s. steel all right now for this last stock we have $25,000 for this

Last stock it’s 2.5 percent of the total portfolio the way i think about this last stock is i want something that is gonna get my blood flowing okay none of these companies honestly they’re not gonna get my blood flowing okay maybe cirrus logic a little bit but most these companies are just solid companies that should grow very nicely over time facebook at apple

Alibaba callaway toll brothers us steel theirs stocks that over over the course of time should do very well okay but it’s not like there’s some type of major opportunity and mostly stocks that i’m like oh my gosh this company could be a 10 bagger that’s a type of stock i’m looking for it for this last one i’m looking for a spec stock i’m looking for something now

Yes it absolutely has more risk in the average stock maybe it doesn’t have the best financials or something but when i look at the business model i’m like wow this has a big opportunity in front of itself and for this last one some you might already know what this last one is it would be tesla for me okay this is ultimate spec stock here you know they have such huge

Opportunity but you all you right now the financials are still ugly in terms of you know the money they’ve been losing this could turn around we don’t know obviously you’ve got the elon musk factor which is like you know a positive and a negative because he tweets out something the next thing you know the stocks down 7% the next day alright so it’s definitely a

Stock that can be stressful but it’s a stock that has massive opportunity over the next three five plus years guys so that is how i would build out a million dollar portfolio i want to know from you guys what stocks you would buy with a million dollars how would you divide it up let me know in that comment section i’m gonna be reading through them all i would love

To hear from you guys as always remember if you want to check out any of my courses or anything like that they’re linked in the description also my instagrams link down there thank you for watching and have a great day

Transcribed from video
THE STOCKS I WOULD BUY WITH $1,000,000 By Financial Education

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