Getting Started Using Revolut
Investing in stocks may be difficult to start doing at times, but anyone with the Revolut app can do so easily, all you need to do is go to the investing tab, which lets you invest without even charging you a commission. The only issue is that Revolut doesn’t have all stocks listed on it, and most stocks are from the US, but it’s a great start to build your investment portfolio. You can always upgrade to a better investing platform later on.
In this article, we’ll show you 5 of the best stocks on Revolut App, that should keep your mind at ease for the long term. Please note that although these are all good companies, we’re not commenting about valuation, as that topic is very subjective and complex. You could always buy more when the stock goes down if the valuation was too high. Great companies tend to do very well in the long run. This article is not a recommendation to buy, it’s just a description of what makes certain companies much stronger than others.
TL;DR -> 5 Best Stocks on Revolut App
If there is one single long term investment you should own, it’s the famous Berkshire Hathaway (just look at its long term price chart). This is the company run by one of the best investors of all time, Warren Buffet. It’s not one single business, you should see Berkshire Hathaway more as a company that makes its money by investing in other companies. It owns many private companies, involved in anything from insurance to food production. Besides the private companies, it also owns large amounts of stock, with its top three holdings being Apple, Bank of America and The Coca Cola Company.
The reason Berkshire Hathaway is an interesting investment is that it takes out the hassle of analyzing a company yourself to a certain extent. When you invest in this stock, it’s the equivalent of giving your money to one of the best investors in the world to do all the investment decisions for you. Long term, Berkshire Hathaway has done better than the rest of the market, and it is difficult to maintain such good returns over a prolonged period. You should normally buy a diversified portfolio of stocks, but if you want to buy just one, Berkshire Hathaway does a good job of giving you a diversified portfolio of most American companies. You should still try to look for some non-US investments, but this is a great start.
Blackrock is an asset manager, which means if you want your money invested by professionals for a fee, you go to Blackrock. Asset management is an industry that should stick around, there are always savings that need to be invested to make money for the long term. Asset Management is an industry where scale is very important, because the larger the amount of money you invest for clients, the cheaper the fee you can charge them as your costs are spread over more customers, and therefore the more competitive you are as a company against others.
Blackrock is the world’s biggest asset manager, investing about 10 trillion dollars on behalf of clients to date. There are many asset managers out there, but this gives them an advantage over the chasing pack, meaning that long term, we could start to see fewer players in the industry, with Blackrock one of the remaining champions. The price has also fell by quite an amount recently.
Lockheed Martin is a defence company that makes anything you need for war, from fighter jets to missiles. Unfortunately, war seems to be a fact of life since the beginning of man and that is unlikely to change. War boosts earnings for companies like Lockheed Martin but it is not a requirement. Countries still have to maintain large trained armies to be prepared, even during times of peace. Lockheed Martin is one of the biggest global defence companies with large competitive advantages against others.
First of all, you cannot just decide to make a fighter jet and sell it to the government tomorrow. There are years of licensing and product review before they will even consider your product. Lockheed Martin has a long history and has spent loads of money researching and developing the best high tech defence technology, so if you were to try and compete, it’s very unlikely you will be able to come up with something better.
Lockheed Martin doesn’t even have many competitors, a lot of mergers have taken place to the point where the industry is mostly a handful of large players, with Lockheed Martin being at the peak. It doesn’t seem like there’s any reason for a company like Lockheed Martin to go away anytime soon.
This is the company behind Google. Its business model is providing you with a very good internet search experience in exchange for showing you the advertising of its clients. The reason why it’s such a good company is that it has a monopoly on accurate internet browsing. Would you ever use any other internet browser? The algorithm behind what makes Google’s searches so good is hidden and cannot be copied.
So Google has a captive audience that they can keep selling advertising to. Approximately half the people in the world use Google currently, so the more internet usage increases, the bigger Google’s audience will be, and they can even sell more/more expensive advertising to this audience to further increase sales. A great thing about Google is that they don’t even have to produce anything, it’s all online, which makes the business model not super difficult to execute and it generates a lot of cash as it doesn’t need to keep investing in more equipment and property to grow.
Alibaba is in the business of being the e-commerce platform of everything in China. Think of something similar to Amazon, except it’s the biggest in the world. Looking at it purely as a company, it’s a very good quality company because it’s hard to compete with them. It has what we call a network effect. Since most people already buy or sell on Alibaba’s platform, if you’ve got something new to sell, you’re going to go to Alibaba because that’s where all the buyers are. If you want to buy something, you’re going to go to Alibaba because that’s where all the sellers are. If you had to start a similar company, who is going to bother coming to your platform if all the buyers and sellers are on Alibaba already? Another thing is its huge logistics network to deliver packages, a result of the size of this company, to be able to deliver anywhere very efficiently. If you wanted to have the same level of service as a competitor, you’d need to invest a huge amount of money on a logistics network of warehouses, trucks and so on to be able to even start competing.
Alibaba has recently gone down a lot in price, even though it’s a very good quality company in a rapidly growing economy. This is where a bit of risk comes in, as the reason for the fall is the political risk of the Chinese government. They are not democratic like the west and so the government can get away with pretty much anything. Some investors worry that the government might try to interfere with the company so it doesn’t have too much power (maybe they might consider taking over the company?), require Chinese companies to only list their stock on Chinese stock exchanges, or worse, China might try to do something like Russia and suffer big economic consequences (Check out our full article on this, in relation to investing in the Far East). However, one has to weigh this risk against the quality of this company and its very cheap valuation. It still looks very promising.
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Disclaimer:
Any views or opinions presented in this article are personal and shouldn’t be taken/used as professional advice as we are not qualified financial advisors.
Any statistics mentioned have all been linked to their respective documents together with their ownership.
Lastly, we would like to note that this article has no tie to our professional jobs and was conducted in our free time.