As the new year rolls out, its time to share the annual investment pick contest that I run. This is the 4th year in the running. This is merely meant to be a fun experiment to run and collect top investment picks for 2019 from a community of investors I regularly interact with. There are still some great picks from the 2016, 2017 & 2018 top picks, and I invite you to check them for ideas. Remember that investing is a long game — so, focusing on short intervals like a year is not prudent — even though this contest focuses on one year return. Plenty of older picks may present long term value.
The rules were simple: Pick one investment (stock, bond, fund, currency, commodity, cryptoasset or any other form of investment security), and present a short & quick investment reason behind the pick. I will track this progress over the year and provide quarterly updates on this blog.
Top Investment Picks for 2019
Before I present the picks, I would like to remind the readers that these are simply picks based on current outlook and each investor should not take this as investment advice. If you decide to pursue these investments, please do your due diligence before investing in any of the securities mentioned.
Without further ado, here are the top picks from the investing community for 2019.
Abandoned Cubicle: Short Term Vacation Rentals
“I’m choosing the Airbnb Experiment because we just wrapped up a successful Year One. The condo got set up back in January, and has yielded us a net return of almost $24,000 after expenses (20% cash on cash ROI). We were fortunate to find a such a good deal that only needed cosmetic improvements. And a year ago when we closed on the purchase, interest rates were still below 5% for investors. Whew… Bottom-line: Airbnb short term rentals are not as passive as long term rentals and some diligence and good customer service skills are essential. But the return for the nominal amount of effort made it a very lucractive investment in year one.”
Note: Due to the nature of this pick (private investment), I will not be tracking the progress through the year since I have no way to track the value and P&L. This is included here for info only.
All About the Dividends: Boeing Corporation (BA)
“Boeing has had big success with their 737 airliner programme continuing to gain orders from all over the world, I don’t see this stopping anytime soon. On the defence side of the business they are also having success winning contracts over rivals. I believe Boeing will have a stellar 2019.”
Angry Retail Banker: Canopy Growth Corporation (CGC)
“I really don’t know what will happen over a single year, but marijuana stocks like CGC will be on a huge growth run over the next decade or so. This company is the largest pot company in Canada, a country which has just legalized all marijuana at the federal level. CGC has been building up its production capacity for the moment the legal marijuana market is in full swing. In the US, more and more states are legalizing it and federal legalization is an inevitability regardless of what any current president, politician, or political party thinks. And even discounting the organic growth, the various complimentary industries that marijuana fits right into means possible takeover opportunities from beverage, alcohol, tobacco, agriculture, pharmaceutical, and food companies.”
Blog Reader Sebastian Harm: Isra Vision AG (ETR: ISR)
“1) German small cap returns _ most stocks returns, 2) I’m bullish on automatization, Industrie 4.0 3) has heavily corrected in my 9-year-yield-channel analysis 4) debt free & insane cash flow 5) owner & founder has good skin in the game”
Brandon Van Zee / Market Scholars: Franklin Resources Inc (BEN)
“Like a lot of asset managers, BEN saw its share price fall in 2018. Its dividend yield is now 3.55%, which is historically attractive for this Dividend Aristocrat with a strong balance sheet, significant insider ownership, and efficient operations. If the stock and bond markets fall in 2019, it will likely earn less money on fees, but due to the ever-changing landscape of the fund management business, consolidation could be on the horizon and BEN would make a fine aquisition target with its smaller market cap.”
Brian So Insurance: Facebook Inc (FB)
“I’m running some ads on it now so I hope it continues to grow :)”