Summary
Highlights
The speaker considers the risk of the watchlist stocks and the smarter option of investing defensively in a Magnificent 7 stock like Amazon. They reference a previous video comparing Amazon and Google's valuation and encourages viewers to subscribe to the channel.
The speaker announces taking profit on Oscar Health stock (OSCR), a major winner this year, realizing a 60% gain in just two months. They plan to share four reasons for selling, the amount earned, and future predictions for Oscar. A bonus includes a watchlist of seven potential next big winner stocks.
Two months prior, the speaker created a popular video emphasizing the undervaluation of the healthcare sector and healthcare insurance companies, explaining why it was a good investment before Warren Buffett disclosed his position in UNH. Oscar was chosen as the best trade due to its volatility and value.
The speaker outlines four reasons for selling: 1) The chart indicated a strong resistance level for Oscar. 2) Avoiding greed after a significant $12,000 profit in two months. 3) Fears of a potential recession, prompting a trim of speculative positions. 4) Oscar's $355 million convertible senior subordinate notes offering, which would dilute shareholder value.
The speaker is unsure about Oscar's future but acknowledges its momentum. If it breaks resistance or benefits from new government incentives, it could surge. Despite potential regrets for selling if it rises further (like with Celsius), the speaker focuses on the profit made and the search for the next undervalued stock.
With $45,000 cash in hand, the speaker presents a watchlist for the next investment: 1) Lululemon (LULU), still cheap but a weak moat fashion stock. 2) Other health insurers like Molina or Elevance, still cheap despite recent gains. 3) Duolingo (DUOL), a controversial stock but potentially attractive if cheaper. 4) Software value plays: Adobe (ADBE) and Salesforce (CRM).