Best Buys Now
What Stocks To Buy Now?
Hi Multis
As every month on or around the 15th, the Best Buys Now.
As you probably know (but I'll repeat it anyway), these stocks are not meant to be short-term gainers. To the contrary. Often, I expect to underperform them for a few months or years. But if they work out, they will bring you high returns for years to come.
New From Now On
From this moment on, I will also add a few extra stocks. That can be stocks that I also see as attractive, but there will also be stocks that I think are too expensive. I know some Multis have a closed portfolio, meaning no money comes in anymore or that money is insignificant compared to the portfolio. So, it can be handy to take some profits from some positions to add to other positions.
Just to be clear, I will not change my own approach and I will not do this. I don't sell based only on valuation. But I know some of you want this and of course, I see which stocks are extremely expensive.
On the other hand, the stocks that I will also mark as interesting will not automatically end up in my portfolio. Sometimes, I see certain stocks as very interesting, but not really for the long term. Maybe they are for shorter-term investors. For me, short term means the next year or two years. I'll give a clear example this month of a stock I see as very attractive, with a lot of upside, but not necessarily a stock I want to own for the long term.
So, without further ado, let's go over the Best Buys Now for March 2025.
1. The Trade Desk
Is anyone really surprised that The Trade Desk is in the Best Buys Now? In that case, you probably didn't pay attention to the articles I've published.
In my latest valuation update, the company got a much better valuation score. When I gave The Trade Desk a valuation score of 3/10 when the stock traded at $114, a few Multis were shocked. But I really didn't see it as attractive. That already changed a bit after the big drop after the earnings were released, but the valuation score was still not that high. It is now.
That means that right now, I see The Trade Desk as a great stock to start a position in or to add to your position. I will also do that the next time I add to the Forever Portfolio. And, of course, as always, you'll see how much I add to my position then.
2. Nu Holdings
The stock price for Nu Holding (NU) is exactly flat year-over-year right now, at the moment of writing ($11.79).
In the meantime, revenue went up by 24.3%, but that was with a very strong currency headwind. On a currency-neutral ground, often called FXN, revenue was up 50% per year.
Even with that strong currency headwind, EPS were up 57%.
Great management, a large TAM, continued high growth, optionality... I could go on for another few thousand words about Nu Holdings, but I won't. I'll just point at that the headwind could become a tailwind. I'm talking about the plummeting Brazilian real.
But look at this graph, where
1 is Q4 2024, the quarter that was reported recently
2 is Q1 2025, the current quarter.
Do you really think the FX headwinds will be as strong as in the previous quarter? I don't. And that's why I see Nu as a Best Buys Now.