Live Stock Review February 25th 2025

Join us as we break down key investing lessons and analyze top stocks, including Palantir (PLTR), AppLovin (APP), Taiwan Semiconductor (TSM), Tesla (TSLA), and Iridium Communications (IRDM).

📉 Why did these stocks drop?
📊 What factors should you check before buying or selling?
💡 How can long-term investors navigate volatility?

Discover proven strategies like stockpiling undervalued stocks, analyzing earnings trends, and avoiding common investing pitfalls. Learn how to think like Warren Buffett and make smart, long-term investment decisions.

🚀 Watch now and take control of your investing future!

Here’s a distilled summary of the key investing lessons and stock-specific insights from the transcript:

Key Investing Lessons

1. Stock Declines Don’t Always Signal Trouble

   • Investigate the reasons behind price drops before reacting. Look for legal issues, customer losses, or fundamental declines before making decisions.
   • Insiders selling shares isn’t always a red flag—it could be for personal reasons rather than company troubles.

2. Stockpiling Strategy (Phil Town’s Approach)

   • Set aside capital to buy high-quality stocks at a discount when they dip.
   • Look for stocks that are fundamentally strong but temporarily undervalued.

3. Key Factors to Check When a Stock Falls

   • Legal Issues – If a company is facing regulatory or legal troubles, that’s a red flag.
   • Customer Losses – A major customer leaving could indicate business weakness.
   • EPS (Earnings Per Share) Decline – A consistent decrease in profitability can indicate underlying problems.
   • Beating Earnings Estimates – Stocks that regularly outperform analysts’ expectations tend to be more resilient.

4. Long-Term Mindset

   • Follow Warren Buffett’s advice: “If you’re not willing to hold a stock for 10 years, don’t even think about holding it for 10 minutes.”
   • Avoid panic selling during market fluctuations.
   • Time in the market is more important than timing the market.

5. Stop-Losses and Technical Analysis Are Risky for Long-Term Investors

   • Using stop-loss triggers can lead to premature exits from great companies.
   • Many investors who rely on technical indicators end up missing long-term gains.

6. Diversification Without Over-Diversification

   • 10-15 stocks is a good portfolio size for wealth-building.
   • Holding too many stocks turns your portfolio into an index fund, reducing potential gains.

7. Tariff and Market Volatility Lessons

   • Trade negotiations, such as the U.S.-China tariff wars, can heavily impact stocks, especially semiconductors.
   • Market history often “rhymes”—past patterns can provide insights into current events.

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Stock-Specific Insights

1. Palantir (PLTR)

• Stock Decline: Driven by CEO Alex Karp selling shares and concerns about Pentagon budget cuts.
• Key Checks: No legal issues, no major customer losses, consistently beating EPS estimates.
• Verdict: Long-term outlook remains strong; potential buying opportunity.

2. AppLovin (APP)

• Stock Decline: Caused by allegations from a research group (Fuzzy Panda Research) but not backed by evidence.
• Key Checks: Strong financials, high margin of safety, no SEC investigations.
• Verdict: Likely a temporary dip; could be a buying opportunity.

3. Taiwan Semiconductor (TSM)

• Stock Decline: Partly due to broader semiconductor market concerns and potential U.S. tariffs.
• Key Checks: EPS growth is moderate, strong long-term potential.
• Verdict: Solid long-term hold but not as strong as Nvidia in growth trajectory.

4. Tesla (TSLA)

• Stock Decline: Intense competition from BYD and other EV makers, declining profitability.
• Key Checks: EV competition is heating up, margins are shrinking, but charging network could be a long-term play.
• Verdict: Risky hold; investors should monitor market share closely.

5. Iridium Communications (IRDM)

• Stock Decline: Previously suffered a steep drop due to earnings miss.
• Key Checks: EPS recovering, serving government contracts, could be a stable long-term play.
• Verdict: Potentially undervalued; worth watching.

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Final Ranking (Long-Term Strength)

1. Palantir (PLTR)
2. Iridium Communications (IRDM)
3. Taiwan Semiconductor (TSM)
4. AppLovin (APP)
5. Tesla (TSLA)

These rankings are based on financial stability, growth potential, and industry position.

Would you like a further breakdown of any of these?