My Watchlist

Investing in stocks may seem straightforward, but it demands a disciplined mindset to stick to your investment strategy and build a diversified portfolio with solid stocks. Drawing insights from Adam Khoo's teachings, I've curated my own watchlist by referencing his portfolio, aligning it with my budget and convictions about the future potential of these companies. While this watchlist isn't exhaustive, I acknowledge there may be many other promising stocks out there. However, my focus remains on these selections until I've secured positions in them.

In this post, I'll focus on providing an overview of the businesses and discussing their economic moat. As for the financials, rest assured they are stable, but you can always verify them easily on websites like https://finance.yahoo.com/ or https://www.wsj.com/.

Summary of 10 Good Stocks

1. Adobe Inc (NASDAQ: ADBE)
2. Amazon.com Inc (NASDAQ: AMZN)
3. Alphabet Inc (NASDAQ: GOOGL)
4. Meta Platforms Inc (NASDAQ: META)
5. NVIDIA Corp (NASDAQ: NVDA)
6. Medpace Holdings Inc (NASDAQ: MEDP)
7. UnitedHealth Group Inc (NYSE: UNH)
8. Salesforce Inc (NYSE: CRM)
9. Mastercard Inc (NYSE: MA)
10. Microsoft Corp (NASDAQ: MSFT)

Marking:

Green dashed line = Calculated intrinsic value
Black line = Support line for entry
Blue line = Order placed

Adobe Inc

NASDAQ: ADBE

Adobe Inc. is a renowned multinational software company that specializes in digital media and marketing solutions. Founded in December 1982 by John Warnock and Charles Geschke, Adobe has become a prominent player in the technology industry, known for its innovative software products and services.

Business Overview:

Adobe's business is centered around providing software solutions that empower individuals and businesses to create, manage, analyze, and distribute digital content across various platforms and devices. The company offers a diverse portfolio of products and services, including:

1. Creative Cloud: Adobe's Creative Cloud suite is a comprehensive collection of software applications for graphic design, video editing, web development, photography, and more. It includes popular tools such as Photoshop, Illustrator, Premiere Pro, and After Effects, which are widely used by professionals and enthusiasts alike.
2. Document Cloud: Adobe's Document Cloud offers solutions for creating, editing, sharing, and storing digital documents. Adobe Acrobat, the flagship product of Document Cloud, is a leading PDF editor used for viewing, creating, and editing PDF files across different devices.
3. Experience Cloud: Adobe's Experience Cloud provides a range of marketing, analytics, advertising, and e-commerce solutions to help businesses deliver personalized and engaging customer experiences across various digital channels.
4. Other Services: In addition to its core offerings, Adobe provides various services such as Adobe Stock (a marketplace for stock photos, videos, and assets), Adobe Fonts (a library of fonts for creative projects), and Adobe Spark (a suite of tools for creating graphics, web pages, and videos).

Wide Economic Moat:

1. Strong Brand Recognition
2. Product Differentiation
3. Subscription-based Model
4. Network Effect

Overall, Adobe's strong brand, innovative products, subscription-based model, and network effect contribute to its economic moat, positioning the company as a leader in the digital media and marketing industry.

Snapshot of market performance

Now is a great time for investors to consider adding shares, as the price is currently below its intrinsic value of $530.

Amazon Inc

NASDAQ: AMZN

Amazon, founded by Jeff Bezos in 1994, began as an online bookstore and quickly evolved into the global e-commerce giant we know today.

Business Overview:

The company's business overview encompasses a wide range of products and services, including e-commerce, cloud computing, digital streaming, and artificial intelligence.

1. E-commerce: Amazon's primary revenue driver. It offers customers a vast selection of products through its online marketplace. With a customer-centric approach, efficient logistics, and innovative technologies like one-click purchasing and Prime membership benefits, Amazon has revolutionized the retail industry.
2. Amazon Web Services (AWS): AWS dominates the cloud computing market, providing scalable and cost-effective cloud solutions to businesses worldwide.
3. Other revenue streams: Amazon's expansion into digital streaming services with Amazon Prime Video and Prime Music, along with its ventures into smart devices (Amazon Echo, Kindle), artificial intelligence (Alexa), and brick-and-mortar stores (Amazon Go, Whole Foods), further diversify its revenue streams and strengthen its ecosystem.

Wide Economic Moat:

1. Great Scale and Network Effects
2. Strong Brand and Customer Loyalty - High switching cost.
3. Massive Investment in Infrastructure and Technology - Not easily replicable by competitors
4. Diversification and Innovation

Overall, Amazon's robust business model, relentless focus on customer satisfaction, and strategic investments in innovation and infrastructure contribute to its formidable economic moat, positioning the company for long-term success and continued growth in the ever-evolving digital landscape.

Snapshot of market performance

Now is a right time to consider adding shares of Amazon. While the stock is currently on an uptrend, some market predictions suggest a potential retracement. Investors may want to wait for a possible dip in the market price before adding shares.

Alphabet Inc

NASDAQ: GOOGL

Alphabet Inc. is a multinational conglomerate known for its dominance in the tech industry. Founded by Larry Page and Sergey Brin in 1998, Alphabet operates through various subsidiaries, the most notable being Google.

Business Overview:

Google, the primary revenue driver for Alphabet, offers a wide array of products and services, including the world's most popular search engine, cloud computing platforms, software applications like Gmail and Google Drive, and advertising services through Google Ads.

Additionally, Google owns YouTube, the largest video-sharing platform globally, and Android, the most widely used mobile operating system.

Aside from Google, Alphabet has diversified its portfolio through other ventures such as Waymo (self-driving technology), Verily (healthcare and life sciences), and Calico (biotechnology).

Wide Economic Moat:

1. Network Effects
2. Brand Power
3. Data and Analytics
4. Technological Innovation

Overall, Alphabet's diverse portfolio of products and services, coupled with its strong brand, network effects, data capabilities, and ongoing innovation, form a robust economic moat, positioning the company for long-term success in the rapidly evolving digital landscape.

The price of this stock is currently undervalued, trading below its intrinsic value. Investors should seize the opportunity to acquire shares during a dip.

Meta Platforms Inc

NASDAQ: META

Meta Platforms Inc. is a leading social media and technology company renowned for its flagship platform, Facebook, along with other prominent entities such as Instagram, WhatsApp, and Messenger. Founded by Mark Zuckerberg and his fellow Harvard University students in 2004, Meta Platforms has evolved into a global powerhouse, connecting billions of people worldwide and revolutionizing the way individuals communicate, share information, and engage with content.

Business Overview:

Meta Platforms operates a diverse range of social networking services and digital communication platforms, each catering to different aspects of online interaction and content sharing.

1. Facebook: The core social networking platform, offering users the ability to create profiles, share updates, photos, and videos, join groups, and interact with others through comments, likes, and messages.
2. Instagram: A photo and video-sharing platform that enables users to capture moments, express creativity, and connect with a global community of influencers, brands, and fellow users.
3. WhatsApp: A popular messaging app known for its end-to-end encryption and seamless communication features, allowing users to send text messages, voice notes, images, videos, and make voice and video calls across different devices and operating systems.
4. Messenger: A standalone messaging app integrated with Facebook, offering users a convenient platform for instant messaging, voice and video calls, group chats, and sharing multimedia content.
5. Virtual Reality (VR) and Augmented Reality (AR): Meta Platforms is also investing heavily in immersive technologies such as virtual reality (VR) and augmented reality (AR) through its Oculus brand, with products like the Oculus Rift and Oculus Quest, aiming to transform the way people interact, work, and play in digital environments.

Wide Economic Moat:

1. Network Effects.
2. Data and Insights - targeted advertising
3. Strong Brand and Ecosystem
4. Technological Innovation - AI, VR, AR

In summary, Meta Platforms Inc. commands a dominant position in the social media and technology industry, fueled by its expansive user base, data-driven insights, strong brand presence, and relentless focus on innovation. These factors collectively contribute to Meta's economic moat, ensuring its continued success and resilience in the face of competition and market challenges.

Currently META is slightly overpriced, so it might be wise for investors to hold off and wait for a dip before buying more shares.

NVIDIA Corp

NASDAQ: NVDA

NVIDIA Corporation, is a leading American technology company renowned for its graphics processing units (GPUs) and semiconductor products. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, NVIDIA initially focused on the gaming market, providing high-performance GPUs for PCs and gaming consoles. Over the years, the company diversified its offerings to cater to various industries, including data centers, automotive, artificial intelligence (AI), and professional visualization.

Business Overview:

1. Gaming: NVIDIA remains a dominant force in the gaming industry, supplying GPUs to power cutting-edge graphics and gaming experiences on PCs, consoles, and cloud gaming platforms.
2. Data Center: The data center segment has emerged as a significant revenue driver for NVIDIA, providing GPUs optimized for accelerating AI, deep learning, and high-performance computing (HPC) workloads in data centers worldwide.
3. Professional Visualization: NVIDIA offers professional-grade GPUs and software solutions for professionals in industries such as design, architecture, engineering, and content creation, enabling real-time visualization and simulation.
4. Automotive: NVIDIA's technology powers advanced driver-assistance systems (ADAS), autonomous vehicles, and in-car infotainment systems, making significant strides in the automotive industry's transformation towards autonomous driving.
5. Edge Computing and IoT: NVIDIA's platform extends to edge computing and the Internet of Things (IoT), facilitating AI inference at the edge for applications like smart cities, industrial automation, and robotics.

Wide Economic Moat:

1. Technological Leadership - Gaming, AI, and data centers.
2. Ecosystem and Partnerships
3. Research and Development - Investing in AI, autonomous vehicles, and high-performance computing
4. Brand Recognition

Overall, NVIDIA's combination of technological prowess, strategic partnerships, relentless innovation, and brand strength form a formidable economic moat, positioning the company for continued growth and success in the rapidly evolving technology landscape.

NVDA is currently extremely overpriced following its announcement of stellar earnings and heightened anticipation of the AI revolution among the public. Investors are advised against investing at the current price point and are encouraged to wait until it approaches or falls below its intrinsic value.

Medpace Holdings Inc

NASDAQ: MEDP

Medpace Holdings is a leading clinical contract research organization (CRO) that specializes in managing clinical trials for small/medium sized pharmaceutical and biotechnology companies. Founded in 1992 by Dr. August Troendle, Medpace has grown into a globally recognized player in the clinical research industry.

Business Overview:

Medpace offers a comprehensive suite of services tailored to support every stage of the drug development process.

1. Full CRO services: These encompass a wide range of vital functions, including study start-up, clinical trial management, monitoring, packaging, biostatistics, data management, medical affairs, safety monitoring, regulatory affairs, and more. Tailored to meet the needs of small and medium-sized companies, these services provide crucial support throughout the entire drug development process.
2. Therapeutics: Strong emphasis on delivering valuable insights to sponsors by collaborating closely with medical experts. This collaboration spans the entirety of the trial process, from design to execution, ensuring that sponsors benefit from both early and ongoing guidance.
3. Labs: Full-service CRO model with global labs for fully integrated efficieny
4. Core Labs: Within this framework, Medpace offers Core Labs specializing in Cardiac Safety and Imaging Services, catering specifically to biopharmaceutical and imaging device companies.

Narrow Economic Moat:

1. High Switching Cost - On average, companies invest around $1.3 billion and dedicate about 7.5 years to navigate through the lengthy research stages. Once they've committed to a CRO, they're often reluctant to hit the switch button. Why? Because switching gears means rerunning trials from scratch, which comes with a hefty price tag in terms of manpower and time. This burden is especially heavy for companies knee-deep in late-stage trials.
2. Barrier for Competitors to Entry - With expertise in global regulatory affairs and a track record of drug approvals in 60+ countries, Medpace facilitates multinational late-stage clinical trials. This broad reach, coupled with extensive knowledge of international regulations, poses a significant challenge for aspiring entrants lacking the necessary technology, experience, connections, and funds to compete at this level.

Overall, Medpace Holdings' specialized expertise, operational efficiency, and strong client relationships contribute to its economic moat, positioning the company for continued growth and success in the competitive clinical research industry.

The current market price is significantly higher than its intrinsic value. I highly recommend investors consider purchasing during a retracement.

UnitedHealth Group Inc

NYSE: UNH

UnitedHealth Group Inc. (UNH) is a diversified healthcare company based in the United States. It operates through two main segments: UnitedHealthcare and Optum. With a presence in over 130 countries, UnitedHealth Group serves millions of individuals through its various health plans and services.

Business Overview:

1. UnitedHealthcare offers health benefit plans for individuals, employers, and government programs.
2. Optum provides health services and information technology solutions to improve healthcare delivery and outcomes.

Wide Economic Moat:

1. Strong Brand Recognition - UnitedHealthcare is one of the largest health insurers in the U.S., enjoying widespread recognition and trust among consumers.
2. Extensive Network - The company has built an extensive network of healthcare providers and facilities, enhancing its ability to deliver comprehensive services.
3. Technological Advancements - Optum leverages advanced technology and data analytics to improve patient outcomes and operational efficiency, creating a competitive advantage.
4. Regulatory Barriers - The highly regulated nature of the healthcare industry acts as a barrier to entry for potential competitors, providing stability and protection for established players like UnitedHealth Group.

The current market price has taken a dip due to some bad news surfacing. As investors, it's wise to stay focused on the core value of the business and not be swayed by short-term fluctuations. This dip presents an opportunity to either add shares to your portfolio or, like me, wait a little longer for further developments.

Salesforce Inc

NYSE: CRM

Salesforce Inc. is a renowned cloud-based software company specializing in customer relationship management (CRM) solutions. Founded in 1999, Salesforce has emerged as a global leader in revolutionizing how businesses engage with their customers.

Investment Thesis:

1. Large Cap Growth Stock: 91% of companies with over 10 employees have deployed a CRM in their organisation, and Salesforce is poised to capitalise on this high-growth industry as the market leader.
2. Riding of the AI Wave: With Generative AI applied to every software in Salesforce's suite, it will be the largest beneficiary of the AI and Generative AI market in customer relations management.

Business Overview:

1. Sales Cloud: Empower the sales team to sell faster and smarter via data storage, leads and progress monitoring, forecasting, analytics, and delivery of quotes, contracts, and invoices.
2. Service Cloud: Enables companies to deliver smarter, faster, and more personalized customer service.
3. Marketing Cloud: Enables companies to plan and optimize one-to-one customer marketing journeys, allowing segmentation and targeting of audiences for precise digital marketing at scale.
4. Commerce Cloud: Provides retailers with the ability to deliver unique shopping experiences.

Wide Economic Moat:

1. Pricing Power & High Switching Cost - Customers switching out of CRM must re-integrate all their software, retrain their staff and educated their customers and parters. The cost of switching is both high and time-consuming.
2. Network Effect - As CRM has the largest market share, it can collect market data unavailable to others as its customer base and usage grows. With the growth of CRM's Data Cloud, customers will be able to connect futher and segment their customers through data collected.
3. Brand Monopoly & Market Leadership

The market price is currently within the range of its intrinsic value, making it a good time for investors to consider adding shares to their portfolios.

Mastercard Inc

NYSE: MA

Mastercard is a global financial services corporation renowned for its electronic payment solutions. As one of the leading players in the payment industry, Mastercard operates a vast network facilitating transactions between consumers, merchants, financial institutions, and governments worldwide.

Business Overview:
Mastercard's business model revolves around providing payment processing services, including authorization, clearing, and settlement, for credit, debit, and prepaid card transactions. The company generates revenue primarily from fees charged to financial institutions for each transaction processed through its network. Additionally, Mastercard offers value-added services such as data analytics, loyalty programs, and fraud prevention solutions to its clients.

The company's operations span across various segments, including:

1. Core Payment Solutions: This segment encompasses the processing of payment transactions made using Mastercard-branded cards. It includes revenue from interchange fees, assessment fees, and other transaction-related fees.
2. Value-Added Services: Mastercard offers a range of value-added services to financial institutions, merchants, and cardholders. These services include analytics, consulting, loyalty programs, and security solutions designed to enhance the efficiency and security of electronic payments.
3. Cross-Border Services: Mastercard facilitates cross-border transactions between different currencies, catering to the needs of multinational corporations, travelers, and global consumers.
4. Other Revenue Streams: Mastercard generates revenue from licensing fees, data processing fees, and other ancillary services, further diversifying its income sources.

Economic Moat:

1. Network Effect
2. Brand Recognition
3. Technological Innovation - Data analytics, artificial intelligence, and blockchain to develop innovative payment solutions and security features.
4. Regulatory Barriers

Overall, Mastercard's robust business model, coupled with its wide-reaching network, brand strength, technological prowess, and regulatory compliance, collectively contribute to its formidable economic moat, positioning the company as a dominant force in the global payments landscape.

At the moment, the investment appears to be overpriced, so it's recommended to hold off and wait for the price to come down before considering investing.

Microsoft Corp

NASDAQ: MSFT

Microsoft Corporation, established in 1975 by Bill Gates and Paul Allen, is a global leader in technology and software solutions.

Business Overview:

The company operates through three main segments:

1. Productivity and Business Processes: Consist of products and services such as Office 365, Office Servers, LinkedIn, and Dynamics 365. These offerings cater to businesses and consumers, providing essential tools for productivity, collaboration, and customer relationship management.
2. Intelligent Cloud: Microsoft Azure, a comprehensive cloud computing platform, along with server products and enterprise services. Azure is one of the leading cloud platforms globally, offering a wide range of services, including computing, storage, analytics, and artificial intelligence.
3. Personal Computing: Microsoft offers devices, including Surface tablets and laptops, gaming consoles such as Xbox, and Windows operating systems. Additionally, this segment includes search advertising, gaming, and software licensing revenues.

Wide Economic Moat:

1. Strong Brand Recognition: Microsoft is a household name with a reputation for innovation and reliability.
2. Diverse Product Portfolio: The company's diverse portfolio of products and services spans multiple sectors, including cloud computing, productivity software, and hardware devices.
3. Network Effects: Microsoft benefits from network effects, particularly in its Office and Azure ecosystems.
4. High Switching Costs: Once businesses and consumers integrate Microsoft products and services into their workflows, switching to alternatives can be costly and disruptive. This creates a barrier to entry for competitors and enhances Microsoft's customer retention rates.
5. Investments in Research and Development: Microsoft continually invests in research and development to drive innovation and stay ahead of emerging technologies. This focus on R&D enables the company to introduce new products and services, further solidifying its competitive position.

Overall, Microsoft Corp's strong brand, diverse product portfolio, network effects, high switching costs, and ongoing investments in R&D contribute to its robust economic moat, positioning the company for continued growth and success in the dynamic technology industry.

Snapshot of market performance

With its price currently soaring to all-time highs, investors are advised to keep an eye out for a pullback as a potential entry signal for Microsoft.

Stay tuned for more updates on my trading and investing journey

I'll be sharing tips and lessons from my experiences