Hi Multis
It’s the 15th of the month, and you know what that means: the Best Buys Now!
But this is a special one, as I will change the format from now on.
Since May 2022, you got 5 Best Buys Now each month. But I felt a bit restrained by that format. The reason is that the market, well, fluctuates. I probably don’t have to convince you about that.
The consequence is that sometimes I see more than 5 opportunities, sometimes fewer than 5, but I still fill them up to 5. Sometimes with ‘cash’ as a Best Buys Now when I didn’t see enough opportunities. Sometimes with stocks ‘to consider’ when I saw more than 5.
I decided to throw that overboard from now on. I will give you the number of Best Buys Now I feel comfortable with. Freedom!
And that freedom will also expand to the kind of stocks I choose. What I mean is this.
In June 2022, I picked Nvidia as one of the Best Buys Now. The stock’s up 1,340% from that pick. And Nvidia was a Best Buys Now multiple times.
I also picked AMD in March 2023 and it’s up 420% from there and AMD was picked several times in the Best Buys Now.
In March 2024, Alphabet was a Best Buys Now. It’s up 184% (versus 45% for the S&P 500 and 63.67% for the Nasdaq). That one too was picked multiple times.
TSM is another stock I picked multiple times as the Best Buys Now and I think you can guess that one outperformed as well.
Everyone happy, right? Well, at the time I picked them, not always. I got a few comments that I didn’t pick enough Potential Multibaggers. I took that to heart, as this came from paying Multis and I always take their feedback seriously.
But I’m not going to take that into consideration again. I’ll tie the Best Buys Now more with my portfolio and what I want to buy now. If I feel that the best opportunities are not within the Potential Multibaggers, I could choose 3, 5, 6, 7 or 9 non-PM stocks at any time. In 2021, I didn’t do the Best Buys Now yet, but it would have been extremely difficult to choose from the stock I picked because almost everything was so overvalued and those that were not, turned out to be duds.
That’s not the case this month, to be sure. I have several Potential Multibaggers stocks, but it could happen in the future that there are none or just one or so. I’ll take how attractive a stock is as the only criterion. Not if it happens to be a Potential Multibaggers stock or not.
My portfolio does not only consist of Potential Multibaggers. My biggest positions (based on an original allocation, not because they have grown so much) that are not Potential Multibaggers (except for one Best Anchor Stock) are, in that order, AMD, ASML, Nvidia and TSM. I also have a position in BESI and Broadcom and several other stocks that benefit from the current AI hype. In March last year (2025), I wrote about considering these stocks:
I added to my position in the first two, but not Micron. This is what I wrote back then:
Micron
I’m not sure if I want Micron (MU) in my portfolio, but I think it could see a big jump from here.
The first reason is that the device may become the next data center, so to speak. This means AI will be placed on devices like phones and computers. They will communicate with the edge (that’s why Cloudflare is so expensive and for good reasons). But over time, this could become the primary way people use AI. Phone memory will be a key component in making this work. I think Micron’s mobile DRAM and HBM (high-bandwidth memory) will see massive growth in demand because of this.
If you look at Micron’s numbers, they already seem to imply that as well.
As you can see, the August 2025 EPS growth is expected to be dazzling. 424% growth. With an implied PE of 14.79, that means a forward PEG of just 0.35. For August 2026, we still see 62.25% earnings expectations. With a PE of 9.12, that means a 2026 PEG of 0.15.
So, why don’t I want to hold this stock?
Mainly because, just like other memory suppliers, Micron is in a commoditized market. Demand is expected to explode, but after that, as you can see from the forecasts for 2027, the demand is expected to drop again.
On top of that, I don’t consider Micron to be a top-notch company. That also means that if they miss the earnings expectations, the stock may drop, no matter how cheap it is.
But maybe the stock fits in your portfolio?
I have talked to people working for Micron customers, and none of them really likes the company. They buy because they have to. One reason is that Micron didn’t want to renegotiate deals made during COVID, when there was also a semiconductor shortage. With the unwinding in 2022, all other chip suppliers were willing to renegotiate the contracts for big deliveries. Micron was not and so, customers had to store the chips themselves and ordered much fewer the next year. The stock was cut in two because of that.
Of course, a rising tide lifts all boats but don’t forget that chips have always been cyclical. The reason is that people don’t have the imagination to see efficiency gains coming. They just project a line going from bottom left to top right when it comes to demand, but if there’s an efficiency quantum leap in memory chips, Micron, SanDisk and others could drop like a rock.
On the other hand, I want to be clear: I’m very happy for those making money from those stocks right now. It’s not the way I invest, but that’s for each their own. I see a lot of bitterness from some investors who missed the AI explosion. On X, they post bitter comments. As they say, a bubble is a run-up you missed.
I see other comments as well, from some that say I have “missed AI completely.” With Nvidia, AMD, ASML, TSM, Broadcom, and BESI in my portfolio, I want to miss every trend like this, haha. Sure, the gains on Sandisk and Micron were even crazier. But you will never have them all and on top of that, I repeat, I invest for the long term, not for a few years. So, I pick the top-notch companies, not the lower-quality names that catch a bid because of a temporary huge demand.
But enough about that. Let’s go to the Best Buys Now! They are in alphabetical order, not in order of preference.
I just realized that there is an extra element to look forward to the Best Buys Now: How many stocks will be chosen? I’ll number them.
1. Berkshire Hathaway
Say what? Berkshire Hathaway (BRK.B)?
That dog of a stock that underperforms the S&P 500 by 30% and the Nasdaq by 42% over the last year?
I can already hear the comments:
“Kris, you’ve been brainwashed in Omaha.”
“Kris, I think you lost your touch.”
“Kris, this is the final element that I needed to know we don’t align anymore.”
But hear me out.
I see Berkshire as an alternative for cash here. Sure, if the whole market drops, it will slide a bit too, but it will definitely outperform. It’s like a hedge against a macro event (inflation?) or an AI bubble.
As I wrote in my article about the Berkshire AGM and my visit to Omaha, I also think that Greg Abel will be a good CEO for the company, the one it needs right now. A bit what Tim Cook did after Steve Jobs.
But especially, Berkshire has $400 billion in cash. That makes it antifragile, to use Nicholas Nassim Taleb’s term. Antifragility means that you become stronger when times are tough. You also have robustness, which means you can endure adversity, but with antifragility, you become stronger from it.
$100B of that cash is restricted for loss provisions in the insurance business, and Greg Abel made an effort to explain why $18B or so was not really cash but an accounting fluke. I didn’t even listen in detail. Because $280B or $300B, it’s still a gigatic heap of money. And that’s one of the main reasons why I buy Berkshire now.
2. Eli Lilly
Hell yeah! A new position that I will start just after this article.
Why?
Well, Mounjaro is now the number one drug in the world. It sold $8.7 billion in Q1 alone. Add $4.2 billion from Zepbound, which is basically the same drug, and you know that the company’s thriving. In the last 12 months, those two drugs alone did $43.18B in combined revenue.
And with retatrutide, a so-called triple G receptor agonist (GLP-1, GIP, and glucagon) in Phase 3 trials and label expansions (think of alcoholism, for example), I think the stock is interesting here. “Reta,” as it is already known, showed even greater weight-loss effects (up to 28.7% of body weight), as well as great effects on type 2 diabetes (not surprisingly) and knee osteoarthritis.
I expect Retatrutide to be an even bigger blockbuster than Zepbound and Mounjaro and I don’t think that is in the numbers yet. This is a forecast for Eli’s EPS growth.
I think that the estimates for 2028 and 2029 are way too low if the company can release retratrutide in 2027, as expected.
I already know a few people who use it, mostly people in body building (those guys are unpaid guinea pigs) because, unlike Wegovy and Ozempic to a great extent and Zepbound/Mounjaro to a certain extent, retatrutide does not impact muscles. For those guys, that’s heaven, of course. I’ve never seen them so enthusiastic about anything. Their doctors (who don’t know they take these things which are illegal until approved) are flabbergasted from their health checks with much lower cholesterol levels and all parameters in the optimal range, without changing much for the rest.
Now, I don’t know if I’d want to be an guinea pig, but I do know that if I see such enthusiasm in early adopters, you can profit by investing in that stock.
3. Mercado Libre
Is anyone who knows me surprised by this choice? I don’t think so.
I could write a ton about this stock and this company, but I’m already working on the earnings deep dive. I don’t think I will be able to finish it tomorrow, so it will be early next week.
This week, I heard about a book by Derek Sivers that I might buy.
When we talk about Mercado Libre, it’s simple: it’s a clear and resounding HELL YEAH!
More to come!
Ok, I’ll tell you the secret now, there are 8 Best Buys Now. But if you are a free subscriber, you miss 5 and you miss the deep dives on the earnings. You miss my portfolio and the mail with the exact allocation of what I will buy after this. You miss our community where you can discuss my choices and ask questions and you miss direct contact with me. I could go on, but the bottom line is: