Hey 5-Star Trader,
Like we discussed on Tuesday, this week, I’m focusing on looking for long-term investments in key corporations that are having boots-on-the-ground impact for humans, particularly refugees. American corporations are standing up, using their resources, talent and influence to assist those impacted by the war in Ukraine.
While I always look for strong companies to add to my long-term portfolio on market corrections, this time I am doing it a little bit differently. I’m looking at socially conscious and responsible companies that I can support by investing in them.
This is a topic near and dear to my heart, and I was so happy that I was able to discuss it on The Exchange on CNBC with Kelly Evans. To check out the segment, click HERE.
How they are helping: Housing assistance for refugees and private clients are renting Airbnbs from Ukrainian owners to help give cash assistance
I have always liked ABNB, as I think it’s a very innovative company with a popular product and I have long believed ABNB will recover well post-pandemic. It’s down about 30% from highs, which may seem like a lot but not compared to most recent IPOs and many hot tech stocks. Therefore, it does have relative strength and it’s getting tons of positive attention and love from people all over the world right now.
ABNB has offered to house 100,000 refugees – on their dime. They have also turned off all fees they charge to those hosting in Ukraine. Additionally, private citizens are booking out Airbnbs they never intend to stay in, solely to help citizens. This is a young company, and the costs they are absorbing to help refugees, especially when they have only reported two-quarters of profits, is astounding.
This will absolutely create brand awareness in addition to brand loyalty due to their actions.
I like the stock here and I have been dying for a chance to pick up more! At $148, it’s a nice buying spot here, but beware of resistance at $160. If it can breakthrough here, it should really get going.
How they are helping – Ronald McDonald house in Poland, Ukraine, and surrounding areas is helping with medical assistance, housing, and additional refugee support. The company is fully paying employee wages despite store disruptions and closures to get money in the pockets of those who need it most.
The MCD chart has been in a bit of freefall, but it’s worth mentioning due to their underlying fundamentals and the care and assistance they are providing on the ground. I think MCD can hold above $200. If it does, that will be a good spot to pick up some more shares. This company is relatively consistent on earnings and shows regular growth, even in our high inflationary environment (which honestly will probably help MCD due to people seeking out cheap options). When the dust settles, picking up companies that are experiencing growth (and that have a nice dividend) makes sense, because they will recover. I will target a reversion to the mean at $250.
Source: Click here
Stock market corrections are a great time to look at strong fundamental companies that you can pick up and add to your portfolio on a correction. While the indexes are currently weak, and especially high-growth momentum stocks are getting destroyed, the companies that will end up recovering well are those that have solid foundations. Combine this with companies that are doing a little extra for humanity and you have investments you can look back on years from now. These are the companies putting social impact first – when they don’t have to. That is something you can feel good about.
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Disclosures – I own all the stocks listed (MSFT, AMZN, MCD, NET, TSLA) and I am always looking for great spots to add more shares. These events, pullbacks, and company values are what draws me towards these names during these current times.