Earn Your Leisure Podcast: "Best Stocks Under $100 to Buy NOW" – Detailed Summary
Episode Overview In this enlightening episode of the Earn Your Leisure podcast, hosts Rashad Bilal and Troy Millings delve into the lucrative realm of stock investing, specifically focusing on the best stocks priced under $100 that investors should consider purchasing immediately. Released on February 9, 2025, this episode blends financial expertise with engaging discussions, offering listeners actionable insights into building a robust investment portfolio without breaking the bank.
1. Introduction to Affordable Stock Investing
The episode kicks off with a compelling conversation about the challenges investors face in today's volatile market, emphasizing the importance of identifying high-potential stocks that are reasonably priced.
Dan: "Any stocks under a hundred dollars that's worth buying?"
Timestamp: [04:16]
2. Highlighting Top Stocks Under $100
a. Nvidia (NVDA)
Mike advocates for Nvidia, especially when its stock dips below the $100 mark. He underscores the company's integral role in the AI revolution and anticipates significant growth in the coming years.
Mike: "Look for the best asset at the cheapest price and leave everything else alone."
Timestamp: [04:19]
He predicts a substantial price increase, stating, "And in three years when it's at $350, what will the excuse be?" suggesting investors should capitalize on current lower prices before the anticipated surge.
b. Advanced Micro Devices (AMD)
Despite a spirited debate between Troy and himself, Mike remains optimistic about AMD's potential. He highlights AMD's innovations and strategic positioning in the tech industry as key factors for future growth.
Mike: "AMD and Nvidia will be two great ones. The question is, will you execute and hold it for the next five years?"
Timestamp: [05:30]
c. Micron Technology (MU)
Ian introduces Micron as another promising stock, currently priced at $90. He emphasizes Micron's partnership with Nvidia in storage solutions, which is crucial for managing the vast data generated by AI technologies.
Ian: "Micron, which is sitting at 90. When these GPUs and all this AI needs to figure out where it's being stored, data storage is going to be important."
Timestamp: [05:32]
d. Dell Technologies (DELL)
Dell is discussed as a stalwart in data center infrastructure. Ian points out the company's advancements in cooling and rack systems, essential for supporting massive data operations fueled by AI.
Ian: "Dell is sitting at 100. This is one of those companies that's just been here for a long time but they're changing the way they're operating obviously now with the revolution AI."
Timestamp: [05:32]
3. Investment Strategies and Best Practices
a. Risk Management
Dan emphasizes the critical principle of not risking more than 10% of one's portfolio on individual trades to avoid irrational decision-making.
Dan: "You should definitely not risk more than 10 of your portfolio if you're trading."
Timestamp: [06:22]
He underscores this by illustrating that trading large portions of one's portfolio can lead to significant losses and emotional stress.
Dan: "If you got a hundred thousand dollars to invest in the stock market, you shouldn't. And trade $50,000."
Timestamp: [06:22]
Mike: "Mistake."
Timestamp: [06:46]
b. Long-Term Vision
The conversation shifts to the importance of having a long-term investment plan. Ian and Mike discuss how short-term thinking can derail investment goals, advocating for a mapped-out plan over the next five to ten years.
Ian: "People need to have that long term vision."
Timestamp: [07:00]
Mike: "Do you have your trading plan mapped out for the year and your investment plan for the next five or ten."
Timestamp: [07:01]
c. Asset Protection through LLCs
Dan introduces the concept of using Limited Liability Companies (LLCs) to protect personal assets when trading. He suggests that transferring trading accounts to an LLC can offer legal protection against potential lawsuits.
Dan: "You might want to consider using the LLC... You can create an LLC and move the registration of your trading account to an LLC. That would help potentially if you ever got sued."
Timestamp: [07:16]
Ian: "This is called asset protection."
Timestamp: [07:48]
Troy: "Especially when you... you should protect yourself at least."
Timestamp: [07:52]
d. Diversification and Position Sizing
Chris and Dan discuss the pitfalls of over-diversifying, which can dilute portfolio performance. They recommend focusing on a manageable number of high-conviction stocks to maximize returns.
Dan: "You don't want to overextend yourself in too many position stocks. That's gonna water down your performance."
Timestamp: [08:14]
Mike: "Yeah. You won't make any real money."
Timestamp: [08:32]
4. Conclusion and Final Insights
The hosts wrap up the discussion by reiterating the importance of strategic investment in undervalued stocks, coupled with disciplined risk management and long-term planning. They encourage listeners to execute their investment plans with conviction and patience, highlighting that well-researched, affordable stocks can yield substantial returns over time.
Chris: "Right."
Timestamp: [07:16]
Dan: "That's something to consider as well. Definitely."
Timestamp: [07:48]
Key Takeaways
- Identify Value: Focus on high-potential stocks under $100 like Nvidia, AMD, Micron, and Dell.
- Risk Management: Limit exposure to individual trades to no more than 10% of your portfolio.
- Long-Term Planning: Develop and adhere to a comprehensive investment strategy spanning several years.
- Asset Protection: Utilize LLCs to safeguard personal assets from potential trading-related liabilities.
- Avoid Over-Diversification: Concentrate investments in a select few quality stocks to enhance portfolio performance.
Notable Quotes
- Mike at [04:19]: "Look for the best asset at the cheapest price and leave everything else alone."
- Dan at [06:22]: "You should definitely not risk more than 10 of your portfolio if you're trading."
- Ian at [05:32]: "Micron, which is sitting at 90... data storage is going to be important."
- Mike at [07:01]: "Do you have your trading plan mapped out for the year and your investment plan for the next five or ten."
This episode of Earn Your Leisure serves as a vital resource for both novice and seasoned investors aiming to optimize their portfolios by investing in undervalued stocks while adhering to sound financial principles. By blending expert advice with practical strategies, Rashad Bilal and Troy Millings provide listeners with the tools necessary to navigate the complexities of the stock market effectively.