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Morning! 5 with Fitz - 11/17/20

Keith Fitz-Gerald

November 18, 2020

Good morning!

The markets look set to give up a skosh this morning after the Dow and S&P tapped new highs during yesterday’s monster session.

Good – that’s normal!

Many investors and traders forget that selling is an essential part of moving higher. The markets, just like people, require digestion after eating a big “meal” like they’ve done recently having escaped the election with comparatively little chaos and received yet more good vaccine news.

Speaking of which, here’s what I’m focused on today:

1 – Amazon just clobbered my “other" drug stock

Several years ago – in late 2016 - I caught a lot of flak for suggesting that Amazon would pivot into personal finance, health insurance and prescription drugs. I also said grocery by the way but that came to pass with the Whole Foods acquisition so there’s need to repeat that today.

People said bluntly, “no way … too regulated, too complicated … and my personal favorite, “you’re delusional."

Perhaps, I thought to myself.

My reasoning was simple then and remains so now - Amazon will enter and eventually try to dominate any business where there are high margins and massive turnover. Team Bezos made good on that yesterday by announcing Amazon Pharmacy which is built upon the 2018 PillPack acquisition, complete with software, fulfillment and health plan integration.

The announcement tanked Walgreens, CVS, and Rite Aid. My GoodRX shares got hit, too and my small position is now a loser. I’m going to hang on because I still think coupons will be critical to Americans who need to make every dollar go farther but I won’t be touching traditional retail pharmacy stocks any time soon to be sure.

2 – Home Depot still a non-starter (for me)

Home Depot turned in solid Q3 numbers and many people expected the stock to soar. Instead, it’s dropped for reasons that are evidently only just becoming apparent to conventional analysts … that Covid-19 related gains are not likely sustainable.

I'd much rather own Apple, NVidia, Palantir ... stocks that are building our digital future because the physical one has too much competition. Just wait until Amazon gets into home improvement ... and they will!

3 – Buffett “boost” on tap for Pfizer

Berkshire Hathaway’s Q3 13F filing shows that Team Buffett purchased shares in ABBV, BMY, MRK and PFE – a move that makes total sense to me. He likes value and all four arguably fit that bill.

My money is still on Pfizer and this move reinforces my thinking that I’m on to something. I’ll be re-investing and buying more shares as market conditions permit.

4 – Reminder – I’m moderating a 2021 investing panel TODAY

My panel and I will be discussing The Road Ahead – US Economic Outlook for 2021 and I’d love it if you can join me. Sign up is FREE but spaces are limited. That’s from 5.20pm to 6.00PM Eastern Standard Time. Click here to sign up

Don’t forget that I am also delivering a 30 minute keynote address on Thursday at 4pm EST! The same sign up link works for that, too and I’d REALLY love to see you there! It’ll be information you can use immediately and, hopefully, very profitably!

5 – 48,337.2% growth rate over 3 years

OneTrust is officially America’s fastest growing private company and we - meaning you and me - cannot buy shares. But, I can and have purchased shares in Palantir which, I bet you dimes to dollars, is very likely to be working behind the scenes either with or using data from OneTrust and its clients including more than half of the S&P 500.

Palantir's stock is still less than $16 a share but I don’t expect it to remain there long because it's growing at 40 to perhaps even 60% a year. The only regret I have is that I may not own enough shares yet. Thankfully, that’s a fixable problem!

Bottom Line

Many investors think money “happens” but that’s not the case. Money doesn’t just magically appear and you don’t get points for showing up. What you do during the first hour of every day defines what happens the “rest” of the day!

Make it count!

Keith

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