Whenever I'm looking for stocks to buy, I'm thinking about long-term returns and not immediate returns. For a value investor, when stocks are going down, that's good news. The 3 stocks I'm buying in December 2021 are not doing well lately.
The first stock I'm buying in December 2021 is Discovery $DISCA . This is a special situation stock as Discovery is going to merge with AT&T's Warner Media. I started buying Discovery before the merger announcement as it was undervalued. It is still undervalued.
The second stock I'm buying in December 2021 is a controversial one, GEO Group $GEO , a private prison company. They are not very popular right now but are still a necessity. President Joe Biden issued an executive order banning the DOJ from renewing their contracts with private prisons. This is bad for GEO Group but I believe that the market overreacted. GEO Group is a cigar butt stock.
The third stock I'm buying in December 2021 is Freeport-McMoRan $FCX . This is a stock I've been buying since last year and is the second best performing stock after GameStop $GME . Why did I buy Freeport-McMoran? Because I'm bullish on Copper $COPPER .
Demand for Copper is rapidly increasing with not enough supply to meet the demand and we're seeing a supply gap. I've looked at most copper miners last year and invested in Freeport-McMoran since it was the most undervalued and it is very sensitive to Copper prices (good to own in a bull market). However, recently copper prices have been falling, allowing us to buy more of Freeport-McMoran.