3 Best Stocks To Invest In Today To Build Long Term Wealth
I'm going to explain the quick and easy way I pick stocks but if you don't care you can jump ahead to the picks by clicking here.
Stock picking is tricky and most investors are better off investing in an index fund, but where's the fun in that? Buying individual stocks is much more exciting and if you pick the right ones you can make a heck of a lot more money than you would with an index fund.
But that's a big "IF" isn't it? How do you know which stocks to pick?
Of course there are lot's of websites and blogs to follow but most of that advise is given out by people that have no clue how to analyze a company.
But there is a way to figure out what the professional stock pickers are buying. These guys have their asses on the line every single day, and if they don't live up to their bosses expectations they're out of a job.
Which Professional Stock Pickers To Follow
I'm sure you're familiar with mutual funds and ETF's. They're basically a basket of investments that are assembled by people that are paid to analyze stocks all day long, and with a little bit of research you can find out exactly what they are investing in.
Let's use my favorite ETF as an example, it's called the Motley Fool 100 (TMFC). It's my favorite because the Motley Fool are long term investors with a long track record of assembling portfolios that outperform the S&P 500. You have to pay for their best investment advice but by keeping an eye on the TMFC you can find out what investments they bought and sold every quarter.
There are two ways to track the holdings of the TMFC. In a second I'm going to show you an easy way to track the TMFC that will also allow you to see the holdings of any mutual fund or ETF. But before I show you that here's a link on their website that literally shows what's in the ETF. Most funds don't do this so it's useful to know both ways to do it.
How To See The Holdings Of Any Mutual Fund Or ETF
Every mutual fund and ETF is required to file a quarterly report with the U.S. Securities and Exchange Commission (SEC). These filings include the most current holdings of the fund and you can access them for free. At this link on the SEC website type in the ticker symbol of any mutual fund. After that all you have to do is open up the N-Q or the N-SQR filings. The website is a bit clunky so using the Fidelity Blue Chip Growth Fund (FBGRX) as an example, I made the step by step graphic below for you.
Note: You can view the full size graphic by clicking this link.
Now that you have the quarterly filings you can compare the most recent filing to the previous one to see what stocks they are buying and selling. And now you know exactly what stocks the smartest money managers in the world are buying, selling, and most importantly, holding.
My Top 3 Stocks To Invest In Right Now
I'm going to do something a little different here than I've done in the past. Instead of making recommendations I'm going to flat out tell you what I have bought recently. Want to know what I think the 3 best stock to buy now are? Just look at what I'm buying, because I wouldn't add them to my portfolio if I didn't strongly believe in their long term potential to be great money makers.