A well-crafted watchlist is critical to smart investing: It can help you find attractive buying opportunities, and it can save you from rushed, emotional decisions by slowing down the process. The Fool now offers MyWatchlist.com, your free customized hub to follow the performance and Fool news and commentary about the companies you're watching.
But what to put on your watchlist? In the latest entry in our ongoing series, Motley Fool Stock Advisor associate advisor Alex Scherer shares three companies (and an ETF) he kind of likes ... but not enough to buy right now.
One to watch
There's a lot to like about Leucadia National
Well, for one, the company is suing one of the businesses in its portfolio. Awkward. Leucadia holds an 8% stake in Australian ore miner Fortescue Metals as well as the miner's debt, and now finds itself suing the company after Fortescue tried to alter the terms of the deal in a way that would dilute the value of that debt. Alex seems confident that Leucadia is justified in its suit and is optimistic it will prevail, but there are no guarantees in the courtroom. And while some pessimism is baked into the current share price, it's not enough for him to hit the buy button. He's watching for a price pullback or, even better, a beneficial resolution to the suit, before he'll make a purchase.
Two to watch
You might have heard of Netflix
"If the whole world is growing slowly or not at all, you have to consider a company that is growing sales 25% and earnings 30% year over year, regardless of its price tag," he says. "It's one of the few companies that could withstand a major double-dip recession, and that's got to be worth a premium."
Still, Alex isn't the type of guy who makes purchases for his portfolio when everything is rainbows and lollipops. He'd love to see some seeds of doubt, some dark cloud to help folks fall out of love with Netflix and knock the price down a bit. He's not holding his breath, but he is watching.
Three and four to watch
Netflix isn't the only company that would thrive in spite of an extended economic downturn. While he appreciates bad news for investing purposes, Alex isn't a gloom-and-doom type who is loading up on gold and guns in anticipation of the apocalypse. But more than ever, he's willing to listen to what those folks have to say.
"I'm in the midst of a multiyear internal debate about inflation and deflation and whether gold makes sense as an investment," he says. "I'm not there, but I'm paying more attention to gold stocks than I ever have before."
He is keeping an eye on the SPDR Gold Trust
And that's exactly why it pays to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist.
Berkshire Hathaway is a Motley Fool Inside Value pick. Berkshire Hathaway, Leucadia National, and Netflix are Motley Fool Stock Advisor recommendations. The Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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