In This Article:
Dakota Wealth Management senior portfolio manager Robert Pavlik joins Wealth host Brad Smith to discuss how retail investors should focus on high-quality companies with strong management and stability, especially during uncertain times.
Pavlik suggests Boston Scientific (BSX), Intuitive Surgical (ISRG), and Fair Isaac (FICO) as solid long-term investments.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
What would be your leading plays right now in order to make sure that, you know, even if you do have and you you'd mentioned how we kind of hit that brick wall on the way down, but now, what is the next conviction for people to kind of pile into a concerted trade?
So, for the retail investor, I mean, hedge funds are not going to be listening to me, traders are not going to be listening to me. Um I think for the retail investor, the self-directed person, you first want to stick with the best quality companies that are out there. Look for solid, strong management, companies that are known for their management and that have stability in their marketplace, that are not worried about all sorts of things that are going on in their marketplace. Um I think if you do that and you you sort of leave yourself enough room by starting an initial position to add to it in case the stock actually, you know, retreats a little bit, you're you're feeling pretty good about that. Now, what we have done is that we've um we've reduced our exposure to consumer discretionary and technology. It's not an easy decision to make. We like the companies, we're not married to them, but we do like them a lot. But sometimes you really have to make the tough decisions. And so we've raised cash, but we've also broadened out the portfolio into areas of the market that we think have gotten hit but still represent great long-term potential. So names like Boston Scientific. Now, if you take a look at the chart on Boston Scientific, BSX, stock has done incredibly well over the past few years, but it traded down to its 100 day moving average, hit that like a rock and bounced. And it's it's very rare that that happens for that particular company. Another one is Intuitive Surgical, the leader in what they do. They have over 8,000 Da Vinci systems in the entire world. Now, if you have a hospital that is invested in a Da Vinci system, your doctors have been trained on this particular machine. Yeah. It's not like uh, you know, you're going to be able to choose another machine right away. I mean, you're committed to that that that um that infrastructure. Even mechanics, I mean, they don't go from Snap-on to Harbor Freight tools, you know what I mean? Yeah. And so the last name would be Fair Isaac. Now, Fair Isaac has also done incredibly well. Again, come down during this period of, you know, transition in the market. But I think as you get to worry about where the economy is going, people are going to be looking for more credit. Fair Isaac is just that. It's FICO. So um those are three names that I think you could invest in, take us an initial position, and feel comfortable with sleeping at night.
