Wallstreet Trapper Start with these Stocks

Summary

“Beginners: Start with these stocks” by Wallstreet Trapper, a financial influencer who explains different stock categories for beginner investors. The speaker categorizes stocks into six categories:

Blue Chip, Income, Defensive, Cyclical, Penny, and Growth, explaining their characteristics and potential for growth. He emphasizes his personal preference for Growth Stocks due to their high potential for appreciation, especially within the rapidly evolving technological landscape.

Here are the defining characteristics of each stock category discussed in the video, and how these categories relate to one another:

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Blue Chip Stocks: These are well-established companies that have been around for a while and will likely continue to exist for a long time.1 They may pay dividends, but they are known more for their brand name and stability.1 Blue chip companies may also fall into other categories, such as income stocks or defensive stocks.23 Examples include Home Depot, Walmart, Apple, IBM, and Costco.1

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Income Stocks: These stocks pay dividends to investors.2 They may have been growing that dividend for some time, and could be Dividend Contenders, Dividend Kings, or Dividend Aristocrats, depending on how long they have been paying dividends (10+ years, 20+ years, or 25+ years respectively).2 Some blue chip companies can also be considered income stocks.2 Examples include ExxonMobil, Prologis, STAG Industrial, Iron Mountain, and Costco.2

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Defensive Stocks: These stocks tend to perform well regardless of how the market is doing.2 Many of them also pay dividends.2 Defensive stocks may also be blue chip companies or income stocks.23 Examples include Lockheed Martin, L3Harris Technologies, Costco, Walmart, and McDonald’s.23

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Cyclical Stocks: These stocks perform well or poorly depending on the current economic environment.3 For example, some cyclical companies do well when people have more disposable income.3 Examples include Disney, Nike, Booking Holdings, TripAdvisor, Marriott, Airbnb, and cruise lines.3

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Penny Stocks: These are stocks that are priced under $5.3

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Growth Stocks: These companies often do not pay dividends, and investors purchase them in hopes that the company will grow.34 They often have high price-to-earnings ratios.3 Some growth companies may also be considered blue chip stocks.1 Examples include Amazon, Nvidia, CrowdStrike, Microsoft, Facebook, Super Micro Computer, DraftKings, and Uber.34

The speaker says they like growth stocks the most because they believe that the world is transitioning into a “super technology phase,” and they want to invest in that growth.4 They say their portfolio currently consists of 80% growth stocks.4