It's important to know how to classify your stocks and over the years, I have used multiple classifications. Here's the one I'm currently using.
1. 𝘼𝙨𝙨𝙚𝙩 𝙋𝙡𝙖𝙮𝙨 🏦:
- Genworth Financial: Trading below book value with potential for cash generation.
- Zynerba Pharmaceutical: A small position with a strong balance sheet. (Update: I took profits on $ZYNE today)
- Spectrum Brands $SPB: Leveraging assets for share buybacks and debt reduction.
2. 𝙏𝙪𝙧𝙣𝙖𝙧𝙤𝙪𝙣𝙙𝙨 🔄:
- UNFI: Despite recent losses, there's potential for growth.
- WarnerBros. Discovery $WBD : A media giant with a promising future.
- GEO Grou: A private prison company adapting to new regulations.
3. 𝘾𝙮𝙘𝙡𝙞𝙘𝙖𝙡 𝙎𝙩𝙤𝙘𝙠𝙨 🔄:
- Freeport-McMoRan: A copper giant with potential in the long term.
- TEGNA: A media company with cyclical trends, poised to benefit from election cycles.
- Alaska Airlines: A travel-related stock with cyclical trends.
4. 𝙎𝙡𝙤𝙬 𝙂𝙧𝙤𝙬𝙚𝙧𝙨 🐢:
- Apple $AAPL : A tech giant growing at a slower pace.
- JPMorgan Chase: A banking leader with steady growth.
- China Mobile: A telecommunications giant with consistent performance.
- AutoZone: A retail leader with stable growth.
5. 𝙂𝙧𝙤𝙬𝙩𝙝 𝙎𝙩𝙤𝙘𝙠𝙨 🚀:
- Essent Group $ESNT: A promising stock with potential for 15% annual growth.
- Skyworks Solutions: A tech stock with significant growth potential.
- Meta: The social media giant with room to expand.
- Alibaba: A leading e-commerce platform with growth opportunities.
6. 𝙎𝙥𝙚𝙘𝙞𝙖𝙡 𝙎𝙞𝙩𝙪𝙖𝙩𝙞𝙤𝙣𝙨 🎯:
- iRobot: A potential arbitrage opportunity with acquisition prospects.
Why classify? It helps me avoid correlation between stocks and know where to get cash during market crashes. It's a dynamic approach that balances risk, volatility, and growth potential.
https://www.youtube.com/watch?v=x0S-Afn7xfY