Long-term wealth is created by adding new money to your investments on a regular and on-going basis. Timing the market is a terrible idea – but if you add new money on a regular basis to timely investments – you are well on your way to financial independence.
Each month we choose 5 new investment ideas that we are excited about. Some of these investments are ones we already own – while others are new ideas that are trending.
This month's best investments include one of the biggest funds in the world, a stock that pays you every singe month, a cyber-weapon, an advertising platform, and a beautiful mountain view.
We think now is a good time to add these ideas to your portfolio. This does not mean they wont loose value in the coming months or years– we can't predict the future. These investment ideas may or may not be the right investment for you– please do your own homework to be sure any investment you make is the best fit for you.
Here are 5 Investment Ideas we are excited about for September 2022 👇
The S&P 500 – VOO or SPY
This will likely be our number one investment of all time. I add shares of SPY to my portfolio every single month and aim to keep 50% of my stock investments in the simple low cost S&P 500 fund, VOO.
The market seems to still be debating "are we in a recession?" or "are we getting out of the woods?". The truth is – I have no idea – nor does anyone else.
I can not control the market, nor will I try and time it. I can only spend my efforts earning and continuing to invest my money in the best opportunity I see at the time. You cant go wrong betting on the 500 biggest companies in the U.S.
If you are new to investing, or looking to put some investing dollars into the market in September 2022 – check out any of the S&P 500 Index funds or ETFs– VOO, SPY, SWPPX
We own shares of SPY, and plan to add to our position this month.
Realty Income Corp – O
Realty Income Corporation is a real estate investment trust (REIT) that invests in free-standing, single-tenant commercial properties in the United States, Spain and the United Kingdom. All Realty Income Corp tenants are subject to triple net (NNN) leases– meaning they agree to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. (This is a huge expense)
Realty Income Corp is known as "The Monthly Dividend Company" because it is one of a few real estate investment trusts that pays dividends monthly, rather than quarterly.
Income and Dividend Investors LOVE O as it is a consistent dividend investment. I tend to lean towards growth stocks when I choose individual names, however I am starting to convert some of my personal gains in more passive investments until I see better opportunities in tech and growth.
Realty Income owns over 11,400 commercial properties under long-term, net-lease agreements, with an occupancy rate is 98.9%. They appear to have have weathered the Covid-19 storm really well. Realty Income Corp servers 72 industries and over 1,100 different clients.
Some REITs come and go. Smaller REITs are relatively unknown, Realty Income is one of the largest and wont be going away anytime soon. O is both an S&P 500 company and a member of the S&P 500 Dividend Aristocrats index – as it has increased dividends every year for the last 25 years or more.
As of September 1, 2022 – O is floating around the $70 mark and pays an annual dividend yield of 4.2%. If you are looking to add an income investment or real estate to your portfolio – take a look at Realty Income Corp, ticker O.
We do not currently own shares of O, but plan to start a position this month.
CrowdStrike – CRWD
Cybersecurity is a business that is not going away anytime soon. As we become more dependent upon the cloud to keep all of our data, passwords, finances, and the rest of our lives safe from criminals, it's important to have companies– like CrowdStrike around to protect all that information.
CrowdStrike Holdings is a global cybersecurity company with a leading cloud-based platform. The company's software-as-a-service business model generates nearly half a billion dollars in recurring revenue and cash flow each quarter. In other words a lot of companies, pat a lot of money for CrowdStrike to keep their data safe.
There are a lot of cybersecurity companies out there but unlike most of them– CrowdStrike doesn't install any on-site equipment (which is expensive and time consuming). Instead, CRWD provides all of its end-to-end security modules as cloud-native services and charges them a subscription fee – something you cant easily cancel.
A leader in cybersecurity – is CRWD worth investing? We think so.
CrowdStrike is an expensive growth-stock – and we know that growth stocks are not having a good week (or month or quarter). CRWD currently trades at $172 (September 5, 2022), about half of its $298 52-week high. But we think it will get back to its all times highs as this company continues to add new customers, provide a MUCH NEEDED service, and is generating a ton of revenue with no signs of slowing down. This is a long-term investment worth taking a look at. It will certainly be a bumpy ride, but they are the leader in an industry thats only getting bigger.
We own shares of CRWD, and plan to add to our position this month.
The Trade Desk - TTD
The Trade Desk is a pioneer in the digital advertising market. TTD offers advertisers an automated auction-based ad-buying platform across a number of channels– from mobile devices to connected TV (CTV). The Trade Desk works works with ad agencies that represent global brands. Recently, The Trade Desk has engaged in partnerships that involve both the brands and the advertisers to provide a way for TTD to nurture long-term relationships with the companies paying for advertising rather than working solely through intermediaries. In other words The Trade Desk is the platform that both the big advertisers and the places that sell advertising meet and do business – it's absolutely huge.
Customers love The Trade Desk as 95% of them keep coming back. As for making money off those customers – TTD generated free cash flow of $222 million through the first two quarters of fiscal 2022 – more than triple the free cash flow of $64 million produced during the same period last year. So TTD is growing and making a lot of money.
The Trade Desk recently signed on Disney to its platform to allow new advertisers to access their properties of Hulu, National Geographic, ESPN, and more.
We think TTD is a great company to ride into the future of advertising. However, it could be a bumpy ride as ad spend is typically the first expense to be cut in a recession. But ad money also gets a boost when a new brand launches or old brands are looking to grow – and TTD will be the benefactor of new ad dollars.
I have been an investor in TTD for years with an average cost basis of $5.69 (up now over 900%!). I currently of TTD and plan to add more shares on red days in September.
4 Acres in Mosca, Colorado
We like to include an alternative investment idea each month – and this little piece of heaven on earth fits the bill.
For an initial investment of just $32,720, you can own 4.09 peaceful acres of land in Colorado. Surrounded by a nature conservatory and Sand Dunes National Park, this is the new American dream.
The description from Zillow:
For all of you star gazers, this is one the darkest spots and this lot is wide open so there are limitless opportunities to view the night sky! This beautiful self-managed Zapata gated community 4.09 acre lot borders BLM and/or the Nature Conservancy providing a huge back yard and an open view to the Sand Dunes National Park to the north, Mt Blanca and Mt Lindsey to the east, the floor of the San Luis Valley to the west and the lovely treed Zapata Subdivision to the south. Homes in this subdivision must be built on site and have a concrete foundation, you can build a guest house and a separate garage. The HOA covers trash removal and road maintenance. Build your dream home here, bring your telescope and binoculars and enjoy the best of Colorado!
Option 1: Live there. Think of the life you could build on this private land. A new trend we are starting to see is people cashing out of the rat race and going off grid. The amount of money you need to afford a lifestyle off-grid is surprisingly low. If you can purchase the land, your shelter, the structure to provide your own electricity (solar or wind), and manage your own food – you will find yourself with very little expenses. A couple hundred thousand dollars invested can provide you with income to be financially independent and retire to your own piece of earth.
Option 2: Rent it out. Think of the cashflow you can earn by putting up an Airbnb on this plot of land! Build a tiny house or park an airstream on the property and rent it out as an escape.
We do not currently own this property, and do not plan to purchase any land in Colorado in September, 2022 – although we will certainly dream about it.
The content is for informational purposes only and not intended as legal, tax, investment, financial, or other advice. We are not investment professionals or investment advisors. The information above is personal opinion and personal experience. There is an inherent risk in investing, be sure to do your own research when making an investment. Read our full legal disclaimer