What are the Best Stocks to Buy Now?
As a site that helps 200,000 beginner investors learn how to buy and sell stocks, WallStreetSurvivor gets asked that one question the most.
We can teach you what a stock is. We can show you why you should buy stocks. And, we can even give you $100,000 in virtual cash so you can practice trading stocks. Click here if you want a $100k to practice investing.
But there is one question we get asked all the time…
“What are the best stocks to buy now?”
The management team here at WallStreetSurvivor has over 100 years of investing experience. And we can honestly tell you that nobody knows for sure what the stock market will do tomorrow.
However, based on our experiences, we can tell you what is likely to happen over the next few months and how to find the best stocks to buy now.
How to Find the Best Stocks to Buy Now
There are probably 10,000 websites out there that will tell you what stocks they think you should buy now and how much those stocks will go up.
Sorry, but after my 35 years of investing, I have learned to look at data and not sales pitches to figure out what stocks to buy.
For my 200,000 readers and users of my WallStreetSurvivor blog, I am going to condense the facts and my experiences down into a few steps.
Here are the facts you should know when you are looking for the best stocks to buy.
1. Buy an SP500 Index ETF like SPY, IVV and VOO.
The goal of every stock investor is to make money. More specifically, the goal is to try and outperform the market overall.
The first stock everyone should buy is an ETF that tries to replicate the market overall. An ETF is an “exchange traded fund” that trades like a stock but actually represents a basket or group of stocks. Don't get bogged down here, keep reading.
If you are paying attention, you are probably wondering why I said to buy an ETF that replicates the market when the goal is to outperform the market. The answer is that you need a solid base in your portfolio to get you started. Then as you start investing and finding what works for you, you slowly shift money out of those ETFs and into specific stocks.
The point is to just get you invested in the market quickly because over the long term, the stock market is the best place to invest!
We like to use the SP500 Index as the benchmark for the market. So the most popular SP500 ETFs are SPY, IVV and VOO. If you are just getting started in the market, you should start buying one of these. We like the IVV slightly better. Here is an article to read more about investing in SP500 ETFs.
Let's say you can save $1000 a month. And that you don't plan on needing that money for at least the next 5 years. The way to get started is to buy $1000 of the IVV the first month. Then the next month divide it among 2 stocks, then the next month buy $1000 of the IVV, etc.
2. Subscribe to a the Top Performing Stock Newsletter
Over the years, we have subscribed to dozens of stock newsletters and purchased many software tools that all promised to help us find the best stocks to buy today.
Our experience was that most of them were just OK. After all, the stock market tends to go up over time, so randomly picking stocks should go up overtime too.
But our experience also taught something that is very important. There are very few stock recommendation newsletters that consistently were able to pick stocks that year over year went up. And most importantly, went up more than the markets did overall.
Our favorite (ie, BEST PERFORMING) stock newsletter is called the Motley Fool Stock Advisor. They typically release about 2 new stock recommendations each month, so that is about 24 a year.
It is our favorite because (All calculations below are based on Friday, April 26, 2019 closing prices.):
- Over the last 3 years 88% of their stock picks have gone up and the average return of ALL of their stock picks is 23% BETTER THAN the market over the same time period.
- How did they manage to beat the market by at least 23% each of the last 3 years? It is because they gave a great history of recommending a few stocks that double and triple each year, as you can see below.
- Their recent stock picks over the last year include:
- OKTA which is up 215% since they recommended it in January 2018
- PAYC which is up 107% since they recommended it January 2018
- SHOP which is up 74% since they recommended it April 2018
- WIX which is up 32% since they recommended it June 2018
- ZS which is up 61% since they recommended it November 2018
- ZBRA which is up 30% since they recommended it November 2018
- TWLO which is up 65% since they recommended it January 2019
- NTDOY which is up 24% since they recommended it February 2019
- TWLO which is up 30% since they re-recommended in in March 2019
- Their April 2019 picks up are 12 and 5%. ( I can't tell you those tickers just yet.)
- There is one thing YOU MUST KNOW about their service. There is definitely a “Fool Effect” when they release a new stock recommendations. Within the first 2 hours of them releasing a recommendation, the stock typically goes up $2 or $3. So if you want to get the best returns possible, you should subscribe and be ready to buy the recommended stocks as soon as you get the alert.
- The Motley Fool just lowered the price of this newsletter and released their Top 10 Stocks To Buy Right Now.
- You can …
- Normally it is $199 a year to get 24 new real-time stocks picks and access to their research of ALL OF THEIR picks.
- They have a 30 day, money back guarantee. So if you are happy, you can get your money back. This is real company that really So if you want to get the BEST STOCK PICKS NOW, you should consider subscribing to this newsletter.
3. Make Sure You Trade Commission Free
If you know you are going to be making at least 2 stock trades a month, then make sure you are trading commission free.
The brokerage industry is so competitive these days that the brokers always have offers to trade commission free or get cash bonuses. Look, it will take you 10 minutes to open a new brokerage account and if you can save a few hundred dollars in commission, it is well worth it.
Here is a site that has the best review of stock brokers and their commission free offers. Visit this site and open a new brokerage account.
If you already have a brokerage account, then consider switching to save on commissions.
Why pay commission when you don't have to.
BEST STOCKS TO BUY CONCLUSION
Making money in the stock market is easier than most people think. All you have to do is get started the right way.
Open a brokerage account that doesn't charge commission.
Subscribe to a reputable stock newsletter like the Motley Fool's Stock Advisor.
And remember to invest the same amount of cash each month so that you ease into the market. This is called dollar cost averaging.
Start off with a large percentage of your money in an SP500 ETF.