Charlie Munger Says the Money Is “in the Waiting.” 3 Stocks Investors Should Buy and Forget.

Given Charlie Munger’s decades of success, investors often look to him for guidance. One of his more interesting pieces of advice concerned what investors should do. do not have do. Instead of actively trading all the time, Munger advised, “The big money is in waiting, not buying and selling.”

Indeed, “waiting” may not work for active investors who feel an emotional need to do something. Also, if a development changes investment theory, they may really want to act.

Nevertheless, investors can sometimes make huge profits by not reacting to news that can wipe out nearly all of a stock’s value. for example, Amazon Despite losing more than 90% of its value at one point, it continues to thrive.

At the end of the day, the decision to own comes down to whether a company has the strategic vision and leadership to make its investment thesis work regardless of the stock’s performance.Circumstances can always change, but the investment case is Shopify (shop -1.33%), Palantir Technologies (PLTR -5.57%)and mercadolibre (Meri -0.87%) These stocks should hold up even if we experience a temporary bear market.

Shopify

Shopify is the “anti-Amazon”. Its platform allows e-commerce merchants to launch sales sites on their own without the support of Amazon or other large providers.

Shopify stands out as a highly customizable platform that requires no coding skills, so it should benefit investors who are waiting. We also operate an ecosystem that can support inventory management, email marketing, payments, and other features needed for your online business. It’s probably features like this that have made him the No. 1 e-commerce platform in the US, according to BuiltWith.

Furthermore, sales for the first half of this year were $3.2 billion, an increase of 28% compared to the same period in 2022. Net income would have been positive had it not been for his $1.3 billion impairment charge from the sale of its logistics business.

The company’s stock has risen about 55% this year, but it still sells for 70% below its all-time high. Additionally, the company’s price-to-sales (P/S) ratio is low even by historical standards. These situations not only indicate that there could be good returns for those who wait, but also that it could be a great time to add shares in this software-as-a-service (SaaS) stock. there is.

Palantir Technologies

Patience could also pay off for Palantir shareholders, thanks to the company’s artificial intelligence (AI) capabilities. The platform has long been a leader in AI and machine learning (ML) because it leverages AI and machine learning (ML) technology to perform analytics and recommend courses of action. Through its technology, it has discovered insights and helped corporate clients find efficiencies in the national security space.

Additionally, Palantir has taken its AI capabilities to a new level by releasing the AIP module. The software enhances Palantir’s tools by adding large-scale language model (LLM) analysis to its suite of AI capabilities.

Admittedly, revenue growth has slowed in recent quarters, but revenue for the first half of 2023 was still up 15% year over year to $1.1 billion. Total profit for both quarters was $47 million. Palantir only recently turned profitable, so its net income numbers will likely increase rapidly for the foreseeable future.

That expectation likely contributed to the stock’s 175% rise so far this year. And since the stock is 60% below its all-time high, investors can still buy at a deep discount.

In fact, Palantir’s P/S ratio of 19 and forward P/E of 78 may make it look expensive. Still, this is a modest sales multiple by historical standards, and the future P/E ratio should decline amid expected earnings growth. If investors are willing to wait until profits grow significantly, Munger’s advice should be helpful.

mercadolibre

Latin American conglomerate MercadoLibre has provided investors with returns of 4,200% since its initial public offering (IPO) in 2007. Despite such success, we may have only scratched the surface of what can be achieved in our local area.

Meri Depends on the data Y chart

The company has been a pioneer in both e-commerce and fintech in the region. It also subsequently added logistics operations and advertising on the platform. These businesses strengthen each other and form synergies that individually benefit greatly.

Additionally, each business grows out of local challenges. It provides fintech services to cash-based customers. Additionally, in the logistics business, same-day and next-day shipping, which did not exist before, is now possible.

These services generated $6.5 billion in net revenue for the company in the first two quarters of this year, up 33% annually. Also, as a newly profitable company, his $463 million earned over the same period increased by 146% over the same period.

Amid that rally, the stock is up more than 45% this year. Also, with a P/S ratio of 5x and a forward P/E ratio of 62x, investors can expect significant growth from that premium price. Therefore, the more patient you are, the greater your potential profits can be with this internet and direct marketing retail stock.