5 Stock I WON'T Buy
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Today we discuss 5 stocks I will not buy. This is the opposite of a series like 3 stocks to buy. This one could be called 5 stocks not to buy.
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Five stocks I refuse to touch I refuse to invest in these five particular companies. And these companies actually, right now are all doing really well. The majority of these companies I’m gonna mention today have tons of profits coming in hundreds of millions, if not billions of dollars in profit.
So I didn’t just like go through some stocks and like pick some ones that are like nearly bankrupt and like, Oh, I won’t touch those. That’s so obvious. I’m picking names that a lot of these companies are actually doing pretty well right now. But when I look out over the long term landscape the next three years, five years, 10 years down the road.
I’m looking at these five companies, either not even being in business, or their businesses being extremely weakened compared to where they’re at. And a lot of times, it’s because of the decisions that CEOs have made with these companies to not address some of the issues guys. So I hope you really enjoy this. I hope you get a ton of value out of it.
I hope you learn a lot about my thought process in regards to these these five companies, guys. All right, the first one up here, the big dog number one that I refuse to invest in, is good old Walmart, Walmart then vincible retailer, the beast of the beast, right, still the biggest retailer in the world, as of right now still the biggest retailer in the world in terms of revenue, and in terms of profitability, the biggest in the world, currently, right?
Walmart, I see this company as is just the path they’re going down. I think it’s just going to get worse and worse. We know people in their, their their preference as far as shopping is moving online, online online. This has been going on for 510 years now and and is just getting to a bigger and bigger place.
Okay. Walmart has not focused nearly hard enough in my opinion on online and it’s not just my opinion, look at Walmart’s numbers, okay. Walmart just in the last quarter reported around 23% growth in online sales. That is horrible from where they need to be they are lagging Amazon so bad right now in the online space.
They needed their numbers need to be up 5060 70% because they’re playing from such a far place behind Amazon right now. And what Walmart has done by the way, there’s a lot of accusations right now that have come out from one of Walmart’s old vice presidents if you guys don’t know just actually in the news today, some some information came out that he claims that Walmart was basically screwing over third party vendors and they were basically not giving them the rate and fees they they deserved and things like that. So many bad moves there. But this is a company that has not focused whereas Walmart has been focused then let’s build more physical retail stores.
Okay, physical retail stores are the last war. That’s not the next war. That’s a last word. Okay, Walmart, you already won that game that game is over, okay. But they want to do it because it’s still profitable right now. So they’re like, Oh, this store is gonna cost us 15 million to build, we can probably make you know, $5 million profit per year from the store.
Let’s go ahead and build the store is a great idea. That’s where their phone their money. They’re also funneling money into dividends and share repurchases. While Amazon what is Amazon doing with their their money, they’re funneling all into pricing for to get pricing advantages.
They’re they’re funneling into distribution, and they’re funneling into acquisitions of other companies that actually make sense. And I actually feel like Amazon’s acquiring these companies, because they literally think of this to help them long term in a big way.
We just saw them pick up brain for about a billion dollars. These are moves that to know don’t just like make numbers look better, which I feel Walmart is when they when Walmart makes moves, they make a move just to make the numbers seem like they’re better.
They picked up jet comm Not really, because they even care to really grow that business. They pick that up because they knew it would give them at least a year of great online sales numbers. You buy jet calm, and then your online sales look great for a year. And they did they look like oh, they’re growing at 60 plus percent.
Nelson that year is over. And now listen, they dropped to a 20 23% or whatever. And that could even go lower Guys, if they’re in a big, big, big problem here because they have not been focused on the online game. And you can say, well, maybe they’re trying to get focused now. It’s too late. They should have been focused on this game 510 years ago, to all sudden start taking online seriously, like within the past year.
It’s not enough guys, it’s not enough and is not going to save them against the mighty Amazon and Amazon will destroy this company. It’ll be another retailer, just another retailer that we said was invincible. And then they ended up getting beat, you know. So anyways, the next one up here. The next one up here is Ford Ford Motor Company. Ford Motor Company.
Oh my goodness, you know, and Walmart. This is not the first time I’ve spoken against Walmart I did so about a year, year and a half ago or so. It is not the first time I’ve spoken against Ford Ford’s another company. I’m not just against Ford.
I’m really like I see a lot of automakers that are going to be going out of business over the next 510 years. And the next time we have we have a recession. That’s when it’s going to happen in a major way. A company like Ford has not been focused nearly enough on electric vehicles.
Ford has Let Tesla get out five to 10 years in front of them, this should never have happened, guys, Ford has all this money, all these profits, all this know how, and they have let Tesla and it’s not just for GM all these guys, they’ve let Tesla get five to 10 years out in front as far as development, the issues that Tesla’s going through right now, the big dog of auto making manufacturers.
They’re going to be going through those issues five to 10 years from now, when they’re just trying to really start figuring this stuff out for real, they have led tests to get in literally reminds me just of what happened in the smartphones, right? You had companies like Nokia, and blackberry that were dominating at that time, right.
And they let Apple come in and get a five year, you know, run on all them got all those guys. And that’s why Nokia ended up not being able to even get close to winning the smartphone war, and they ended up losing completely Blackberry, it was the same deal without blackberry does even make phones right, and they were dominant at that time.
Nokia and blackberry were dominant, and they let Apple come in and get a five plus year advantage on the tech side, and they never were able to catch up, it’s the same exact thing that has happened here with Tesla, these these automakers with all these profits have decided to use the profits elsewhere, they’ve let Tesla literally get a five to 10 year advantage of and the proof will be in the pudding.
The numbers are really going to start to show in about a year to a year and a half from now. And everybody’s gonna go Whoa, look at these numbers Tesla’s now putting up and look at these numbers dropping for the other auto manufacturers and a wait till we have the next recession that’s when.
That’s when the water is going to drain out and everybody without pants on which is going to be the majority is auto manufacturers, it’s going to get shown guys in is going to be an ugly, ugly scene. And we’re gonna have mass consolidation between automakers we have automakers buying other automakers for garbage prices and things like that and people just trying to team up to try to find out Tesla it Good luck to these auto manufacturers guys.
Good luck to them. Ford is another one. The next one down here is the next one down here. Number three is good old Sirius XM Radio Sirius XM. One time people thought this was going to be the future and whatnot. And this was a future like radio play and whatnot. This is a name that in my opinion is going to be in a lot of trouble. We see more and more people going to subscription type services. Okay, Spotify, Apple Music, Google music, all these types of services, right? We see more and more than going that were out rather than, you know, a Sirius XM.
So if they’re going premium experience, I don’t know anybody that is like, oh, let me go premium and experience experience with Sirius XM. They are tied in with a lot of audio manufacturers right now. So a lot of times you bike I just bought a new car recently, right? And what did they do? They said, Oh, you’ll get a year free of Sirius XM.
And they’re hoping that you know, people get that free year. And they go ahead and renew okay for another $50 next year $100, or whatever it is. That is what they’re banking on. But I can tell you, they’re in the wrong business. It streaming is the future. And then now Spotify, Apple Music, Google music, these things are going to dominate Sirius XM.
I just don’t see it being a space. And I see it being a situation where some of the exclusive content that Sirius XM has right now right now is like the thing that I guess you would want Sirius XM for some of the exclusive like news talk shows and things like that.
None of those creators, where are they going to end up going, they’re gonna end up going to Apple, they end up going to Spotify, Google music, some of these other ones, because these guys are trying to win a bigger war, right? So they’re going to pay money if they need to pay, you know, $5 million for a talk show per year.
10 million for one that was exclusive content on Sirius XM, they’re going to end up doing that guys. So Sirius XM not a name I like at all. The number four one is yum brands. Have you ever heard of yum brands? Well, they’re a huge fast food restaurant chain. They own businesses like Taco Bell, and KFC Pizza Hut.
A lot of these different brands right? Yum brands, the issue I see is one we got more and more competition in the food space than ever before. I mean, you can drive anywhere without there being you know, new fast food places almost everywhere, right? more quick serve places.
It’s just been crazy over the last five to 10 years, how many new? You know restaurant chains and fast food chains have come out of the you know, the Woodworks and whatnot. Whereas Taco Bell and KFC, you know, those are kind of like those are the places you win. Also, on top of more competition, these ones also have a big issue with they pay a lot of their employees minimum wage or near minimum wage.
Where are wages going right now up pretty much state after state in the United States of America is going up drastically as far as the wages. Okay, so that is a very bad sign. Also, with a strengthening economy. What ends up happening, then that raises wages even more because you’ve got to you’re trying to fight for a worker, a worker that might have worked at Taco Bell might end up going and working at that construction site.
Instead of getting a job. They’re doing something there. Right. So those are the issues this one has and it’s been a company that internationally has kind of held the company together as far as making the numbers look good. That’s gonna really start to slow then you got the minimum wage and then you got just more and more competition in this space.
I don’t see this one being a good name, long term I mean Taco Bell KFC I think those are like brands that might have been strong, you know, 1020 years ago. I don’t think they’re nearly as strong nowadays. And the last one here is good old Best Buy Best Buy.
This one has done a good job fighting a lot of people thought all Best Buy they might already be dead at this point. They’ve done a very good job of fighting off the almighty Amazon and pretty much anybody that sells electronics, Walmart and Target they’ve done a pretty good job.
The issue with Best Buy is pricing. Okay, they sold a lot of commodity products, okay, if I want to go buy another new Mac, okay, if I want to go buy a new Mac computer, I could go buy it at Best Buy or to look at it on Amazon or look at on eBay, you know, because eBay a lot of times I know electronics actually be everybody’s price.
I can go on eBay. I can go on you know, b&h photo b&h photo has some phenomenal deals and oftentimes you don’t even pay like taxes on it or shipping fees at b&h photo sometimes they get the best deals and so I look at a name like Best Buy and they’ve done a good job with with managing the business and kind of getting it to thrive for a little bit longer and with a stronger economy but this is one.
I see folding the next time we have a real recession this company in this country because one electronic sales will drop to on top of that people what happens in a recession they’re going to go and they’re going to say okay, also now that extra $50 I might have spent at Best Buy before or extra $100 on this product now.
I’m going to look online and see see what my best offer is there and they’re going to go and take that best buys a company I see the next time we have a major recession going actually out of business and like I said all these companies I think you’re going to get hit in a major major way the probably the most surprising to people is probably Walmart.
I they’ve just not been focused on what they should have been focused on online and it is going to really start to show in the numbers over the next few years and once it starts to weaken is going to get really ugly for Walmart because we’ve seen with retailer after retailer they go from making tons of profits and as soon as they start to go down they cut staffing then then that just you know snowballs.
Into worse things right the business just being even run worse than it already was. And then the next thing you know they’re losing money and next thing you know they’re losing $1,000,000,000.05 billion dollars $10 billion next thing you know they’re they’re filing you know for bankruptcy and whatnot. So we’ll see how they they find it out but.
I don’t see it being a good future for them. They just haven’t been focused. But anyways, let me know about these five which of these five Do you guys think is the most likely to let’s say go bankrupt? Let’s say fully go bankrupt, not just the stock goes down substantially over the next three 510 years, but literally go bankrupt.
Which one of these Do you think so most likely to go bankrupt? Which one of these do you think is the least likely to go bankrupt in the next three 510 years? I would love to kind of hear from you guys as far as that goes. But anyways, thank you for watching and have a great day.