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The coronavirus pandemic and the economic chaos it unleashed has created new opportunities left and right for savvy investors. We're not talking about investing in vaccine stocks either. The world will be fundamentally changed even after the recovery.
Today, we'll show you how to capitalize on these changes by building a portfolio of coronavirus stocks that will come out on the winning end. And you can build this portfolio for just $1,000.
Not long ago, if you saved up $1,000 to invest in stocks, you had just a few choices.
You had to pick one stock to invest in and hope for the best or buy a mutual fund or ETF.
Commission costs, even at discount brokers, were so high that trying to spread your money across a few different companies would cost too much to be practical. Today, with commission-free trading, you can spread your money across three companies and start building a solid portfolio.
Here's how to do it with three of the best stocks to buy today, including how to balance your $1,000 portfolio...
The Best Stock to Buy Is the Toll Collector of the Economy
For our centerpiece stock, let's put $500 to work in shares of the company many have called the toll collector of the 21st century. Brookfield Asset Management Inc. (NYSE: BAM) is a $50 billion investment company that invests in everything that makes the world work. Brookfield owns energy plants, infrastructure assets like airports, marine ports, toll roads, real estate, and railroads. If the world needs it, Brookfield probably already owns it.
Last year, it purchased a controlling interest in Oaktree, the distressed debt firm run by legendary investors Howard Marks. Thanks to the economic shutdown, more firms are experiencing difficulty, and distressed investing will be a high return strategy for the next several years.
This makes Brookfield one of the few companies that will actually see an improvement in earnings due to the pandemic. Think about it this way: You're owning the company that's got $50 billion of muscle to scoop up the biggest and best opportunities created by the pandemic and shutdown. That's putting your money to work for you in a big way.
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Brookfield also has a large private equity operation that will be well positioned to scoop up assets at bargains prices around the world. In late 2019, it closed on a $9 billion fund, so it has plenty of cash to put to work.
Brookfield is a compounding machine. Over the last 20 years, the stock has averaged about 20% a year in annual returns. One thousand dollars invested in the company in 2000 would be worth over $35,000 today. The next 20 years should be just as exciting and profitable.
This Coronavirus Stock Powers the New Work from Home Reality
Next, let's get positioned for all the credible growth opportunities that we see ahead of us. Cloud computing, artificial intelligence, cloud computing, the Internet of Things, self-driving cars, 5G, and e-sports are just some of the megatrends that can make people incredibly rich over the next decade. With $1,000, we don't have the cash to invest in companies in all of these industries.
Since we can't invest across a range of companies in several high growth industries, let's buy the one company that will see massive growth opportunities form all of these powerful trends. Intel Corp. (NASDAQ: INTC) is the leading semiconductor company in the world, and its chips will be used in every technological breakthrough of the 21st century.
Intel has been aggressively acquiring small companies that make products that give them an edge in the hottest areas of technology. In the past few years, they have acquired Moovit, a leading Mobility-as-a-Solution provider as well as Mobile Eye, a vision technology company. The combination makes Intel a leader in proving chips and processors for driverless cars.
Intel has made similar acquisitions to strengthen its presence in hot segments of the market, including 5G, artificial intelligence, data centers, and cloud computing.
These trends are going to be especially explosive as companies shift to remote work, where they'll need cloud data storage, cybersecurity protection, and all the software and tools to make work possible. Intel is the perfect pick-and-shovel play for these new trends.
Intel has no intention of being left behind as hot new markets develop either. Most people are not aware of it, but Intel runs a venture capital fund that provides capital for the hottest startups in the technology industry. Last year, Intel Capital invested over $460 million in emerging tech companies in the hottest areas of the marketplace.
Buying just this one company makes sure that no matter what happens in technology, we make money.
But our best coronavirus stock has the highest upside.
When Warren Buffett says he was betting on America, this is what he meant. This company is essential for the economic recovery.
Bet on America with The Top Coronavirus Stock
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.