Thread by @FluentInFinance

Warren Buffett, the 4th richest American (worth $100 Billion) recommends investing in an S&P 500 Index Fund

Over 20% of the S&P 500 is made up of 5 stocks:

7.3% Apple $AAPL
5.7% Microsoft $MSFT
3.6% Google $GOOG $GOOGL
3.3% Amazon $AMZN
2.5% Tesla $TSLA

Let’s discuss each:

Also, the S&P 500 is America's largest companies, and returned ~11% each year on average, over the last 96 years

Let’s also look at other popular holdings:

1%- NVidia $NVDA
1% JPMorgan $JPM
1% Mastercard $MA
1% Costco $COST
1% Walmart $WMT
1% Disney $DIS

Let’s discuss all:

Apple $AAPL:
- Apple iCar & Augmented Reality products in the pipeline
- Apple Pay is #1 mobile payment system in US
- 1.5 billion+ active devices in ecosystem, with devices to be replaced every few years

Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow

Microsoft $MSFT:
- Dominance in cloud computing space
- Azure is growing faster than Amazon's AWS
- Azure has a large and constantly growing market share for the Cloud Computing market

Data shows great:
- Profitability
- Upside Breakout
- Social Sentiment
- Institutional Flow

Alphabet/ Google $GOOG $GOOGL:
- MOAT on the online ad market
- Leader in quantum computing
- Strong balance sheet
- Healthy cash flow

Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow

Amazon $AMZN:
- Largest in cloud infrastructure space
- Health care services growth (health care spending accounts for ~20% of the economy)

Data shows great:
- Upside Breakout
- Social Sentiment
- Institutional Flow

Tesla $TSLA:
-Low battery costs, self-designed A.I. chips & data it has collected from billions of miles of real-world driving from its customers gives #TSLA a huge competitive advantage other EV's

Data shows great:
- Growth
- Profitability
- Upside Breakout
- Institutional Flow

Nvidia $NVDA:
- Makes the best graphics chips
- Huge player in artificial intelligence, machine learning, metaverse, digital biology, robotics, autonomous vehicles, cloud computing space, IoT & 6G space

Data shows great:
- Dark Pools
- Upside Breakout
- Institutional Flow

JPMorgan $JPM:
- America's biggest credit card issuer
- Higher interest rates is a positive
- Friendlier banking regulations is a positive
- Around half of all US households do business with Chase

Data shows great:
- Profitability
- Institutional Flow

Mastercard $MA:
- Very well managed company
- Increasing use of its networks due to unrelenting sector growth in e-commerce & mobile payments (electronic transactions will continue to grow tenfold)

Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow

Costco $COST:
- One of the strongest balance sheets
- Consistently ahead of earnings estimates
- One of the most loyal customer bases (90%+ membership renewal rate in North America)

Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow

Walmart $WMT:
- 47-years of dividend hikes
- Only American retailer that can complete with Amazon
- Many retailers won't survive this recession, and their losses will be Walmart's gain

Data shows great:
- Profitability
- Upside Breakout
- Institutional Flow
- Options sentiment

Disney $DIS:
- Disney has a lot more great content in their pipeline
- Pandemic has ended and travel restrictions are being lifted + holiday & travel season may be the busiest season for Disney parks

Data shows great:
- Upside Breakout
- Institutional Flow

Data and images are from the @prospero_ai app. My 3 favorite long-term metrics on the app are:

1. Growth Rating- How likely a company is to grow in revenue and/or size in the next 1-2 years

2. Profitability Rating- How likely a company is to be profitable in the next few years

3. Upside Breakout - Higher scores indicate a larger chance of a sharp move upwards in price, any time within the next 1-2 years

My 3 favorite short-term metrics on the app are:

1. Net Institutional Flow- Tracks if institutions are buying up or selling off a stock, or options

2. Net Options Sentiment- Provides information on how long or short the market is on short duration options

3. Net Social Sentiment- Gauges positive & negative sentiment from social media, as well as the difference between them

- Dark Pools are exchanges that institutions use to make trades without immediately moving the markets

- Net Institutional Flow is tracked using 13F & 13G SEC filings

-Profitability is based on current financials & estimates

- Growth is based on forecasted financials

Check them out on twitter at @prospero_ai

Also, gain early access to the app, for FREE at Prospero.ai