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  • Andrew Lokenauth

25% of the S&P 500 is made up of only 5 stocks, let's discuss each stock:

Updated: Nov 7

Warren Buffett is worth ~$100 Billion and recommends investing in the S&P 500. ~25% of the S&P 500 is made up of only 5 stocks: • 7% Apple $AAPL • 6% Microsoft $MSFT • 4% Google $GOOGL • 3% Amazon $AMZN • 3% Tesla $TSLA The S&P 500 is America's largest companies, and returned ~11% each year on average, over the last 96 years. The S&P 500 is also: • 1% NVidia $NVDA • 1% Meta $META • 1% Disney $DIS • 1% Costco $COST • 1% Walmart $WMT • 1% Mastercard $MA Let's discuss each stock and it's bull case: Apple $AAPL: • Apple Pay is the #1 mobile payment system in US • Apple iCar & augmented reality products in pipeline • 1.5 billion+ active devices, with devices replaced every few years Data shows great: • Profitability • Institutional Flow • Upside Breakout

Microsoft $MSFT: • Dominant in cloud computing space • Azure growing faster than Amazon's AWS • Azure has a large & constantly growing market for the cloud computing market space Data shows great: • Profitability • Institutional Flow • Upside Breakout

Alphabet/ Google $GOOGL: • MOAT on online ad market • Leader in quantum computing • Strong balance sheet & healthy cash flow Data shows great: • Institutional Flow • Upside Breakout

Amazon $AMZN: • Largest in cloud infrastructure space • Health care spending accounts for ~20% of the economy & they have a growing health care services business Data shows great: • Dark pool activity • Institutional Flow • Upside Breakout

Tesla $TSLA: • MOAT over other EV's due to low battery costs, self-designed A.I. chips & data collected from billions of miles of real-world driving from its customers Data shows great: • Growth • Profitability • Options Sentiment • Institutional Flow • Upside Breakout

Nvidia $NVDA: • Best graphics chips & exposure to many themes such as artificial intelligence, machine learning, metaverse, digital biology, robotics, autonomous vehicles, cloud computing, IoT & 6G Data shows great: • Options Sentiment • Institutional Flow • Upside Breakout

Meta $META: ~80% of the World uses its products (Facebook, Instagram, Messenger & WhatsApp share ~4 billion monthly active users) Data shows great: • Profitability • Dark pool activity • Institutional Flow • Upside Breakout

Disney $DIS: • Disney great content in their pipeline • This may be the busiest season for Disney parks (due to pandemic ending, travel restrictions being lifted & holiday season) Data shows great: • Profitability • Options Sentiment • Institutional Flow • Upside Breakout

Costco $COST: • One of the strongest balance sheets • Consistently beats earnings estimates • One of the most loyal customer bases (90%+ membership renewal rate in North America) Data shows great: • Profitability • Institutional Flow • Upside Breakout

Walmart $WMT: • 47-years of dividend hikes • Only American retailer that can complete with Amazon • Many retailers won't survive this recession, and their losses will be Walmart's gain Data shows great: • Profitability • Institutional Flow • Upside Breakout

Mastercard $MA: Exponential growth in smartphones, e-commerce, mobile banking & mobile payments will benefit (80% of World's transactions are still done with cash/check Data shows great: • Profitability • Options Sentiment • Institutional Flow • Upside Breakout

If you want to pick better stocks long-term, consider these 5 signals: 1) Profitability- How likely the company is to be profitable over the next few years 2) Growth- How likely a company is to get bigger in revenue and/or size 3) Market Similarity- how closely the stock will follow the movement of the S&P 500 4) Upside- Chance of sharp move upwards in price any time within the next 1-2 years 5) Downside- chance of sharp decline in price any time within the next 1-2 years If you want to swing trade better stocks short-term, consider these 5 signals: 1) Institutional Flow- If institutions are buying up or selling off a stock or options 2) Options Sentiment- How long or short the market is on short duration options 3) Dark Pools- Amount a stock trades in Dark Pools relative to the total trading volume and number of shares 4) Shark Rating- Measure of the trustworthiness of the institutions that own a stock 5) Short Pressure- Market forces pushing the stock price down and the potential to move sharply up or down *Data and images are from the http://Prospero.AI app. The app provides data that hedge funds use to make trading decisions. **Refer to the app, as signals change!



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