We are putting this list out to give an idea of how to approach the coronavirus crisis. Our approach is to look at companies that we won’t mind owning for the next 10 years. We are talking big companies that will still be in business and not penny stocks. There’s always opportunities in penny stocks, but for your core portfolio, it’s better to be in blue chip companies. Can gamble with your penny stock money.
In the past 50 years, there have been now 5 times worth loading up on stocks. The first was in 1973 and ’74, the second was in 1982, the third was in 1987 and the fourth was in 2008 and 2009. And 2020 is the fifth one. Famed investor Bill Miller told CNBC recently:
“I think this is an exceptional buying opportunity. I don’t mean to put all the money in at once but I do think layering it in right now is the way to go.”
Stocks to buy
Here are 10 stocks to buy in the panic. Buying at different prices makes the most sense. Scale in like Bill Miller recommends. This is not investment advice, but serves as a guide and gives you a sense of how we are looking to invest through the coronavirus crisis.
The strategy is that once you’ve accumulated your position, you look to hold for the next 5 to 10 years. The goal is to make 5 to 10 times your money. This is how much you would have made buying in the last crisis of 2009-2009. There’s also hefty dividends to collect like with BP Inc, which yields 15% at current levels.
Wynn Resorts Ltd (NASDAQ:WYNN)
MGM Resorts International (NYSE:MGM)
Marriott International (NASDAQ:MAR)
The Walt Disney Company (NYSE:DIS)
Nike Inc (NYSE:NKE)
Occidental Petroleum (NYSE:OXY)
BP Inc (NYSE:BP)
Starbucks Corp (NASDAQ:SBUX)
Boeing Co (NYSE:BA)
Carnival Corp (NYSE:CCL)
Warren Buffett has proven that the path to real wealth is in buying good companies and holding them for the long-term. While we have no idea when the markets will bottom, history has proven that global economies are resilient and good companies rise to the top. Unless the whole world dies from coronavirus, we believe better days are ahead and investors just need to ride it out. The smart move is to raise cash and put it to work, just like Warren Buffett, Bill Miller and countless other smart investors.
We will be updating our subscribers as soon as we know more. For current updates, join Insider Financial today!
Disclosure: At the time of publication, we own shares in WYNN. We plan on making purchases in the stocks mentioned after 72 hours of publication. We have not been compensated for this article.