In this article, we take a look at Graham Stephan’s 10 stock picks. To see more such companies, go directly to Graham Stephan’s stock portfolio: 5 selected stocks.
Graham Stephan is perhaps one of the most popular celebrities in online wealth creation communities. With over 4.2 million subscribers on YouTube, Stephan actively shares tips and comments on how to get rich in real estate, stock investing, cryptocurrencies and more. Stephan, who became a millionaire by the age of 26, says in his YouTube channel description box that he started working in real estate just after he turned 18.
There has been a lot of talk about how Graham Stephan became successful and his lifestyle. In the introduction to this article, we would like to talk about Stephan’s investment philosophy and what he has been saying about the stock market lately.
On March 8, Graham Stephan uploaded a video titled “A Warning for the 2023 Stock Market” to his YouTube channel. Stephan stressed that this year got off to a solid start, but then things went haywire as data showed inflation is still high and the Federal Reserve is poised to raise interest rates further. Stephan said that “nobody has the faintest idea” whether we’re in a bear market or not.
Stephan said he expects the Federal Reserve to hike rates by 25 basis points for the remainder of 2023.
“The Portfolio of the Golden Butterfly”
Graham Stephan has consistently spoken about how investing in stocks is fraught with volatility and how difficult it is for even experienced investors to achieve high returns by investing in individual stocks. Stephan spoke about “The Golden Butterfly Portfolio” in a February 2023 video, which he believes is a strategy to deal with “everything Jerome Powell throws at you, from recessions, unemployment, spikes in inflation, deflation and even a… to cope with the endless money printer.
This portfolio invests in stocks, equities, bonds and commodities. According to Stephan, this four-quadrant approach helps you to manage the four cycles of the overall economy, namely rising prices, falling prices, rising growth and falling growth.
According to Graham Stephan, the only way to protect yourself in the ever-volatile markets is to diversify your portfolio. In a video he said:
If you can’t handle a 20% drop without panicking, it’s probably a sign that you’re investing too aggressively. For example, if you invest entirely in US tech stocks, it’s probably a good idea to add large-cap and international stocks to the mix as well.
On December 7, 2022, Graham Stephan said in a tweet that the stock exchange represents one of the “best entry points” of the last 15 years.
“If you wish you could go back in time and invest in 2009, now is the time.”
Stephan then mentioned five index funds that he thought would be the best to invest in to take advantage of this opportunity. In line with its investment philosophy, these index funds offer investors broad exposure to the overall stock market, eliminating volatility and risk.
Photo by Chris Liverani on Unsplash
In the first part of this article, we will mention the five index funds recommended by Graham Stephan. In the second part of the article we will mention some of Graham Stephan’s interesting stock picks that he initiated using an interesting (but highly random) method as part of an experiment. The second part also mentions some picks from his watch list on public.com, a platform Graham Stephan regularly recommends and promotes in his YouTube videos.
Graham Stephan’s stock portfolio: 10 selected stocks
10. Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX)
The Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX) is one of the best ways to gain exposure to the overall US stock market. The Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX) portfolio is diversified across multiple sectors and includes small, mid, and large-cap stocks.
Graham Stephan mentioned the Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX) in his December 2022 tweet, saying the following:
This fund would be the cornerstone of Warren Buffett’s idea of never betting against America!
The Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX) portfolio consists of over 3900 stocks. Technology makes up about 24% of the total portfolio, while the consumer discretionary sector makes up about 14% of the pie.
The top three holdings of the Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX) include: Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) And Amazon.com, Inc. (NASDAQ:AMZN). These three stocks are also among the most popular stocks among elite hedge funds, according to Insider Monkey’s database, with 943 hedge funds and their holdings as of the end of 2022.
Graham Stephan mentioned Vanguard Total Stock Market Index Fund ETF (NYSEARCA:VTI) as the corresponding ETF of Vanguard Total Stock Market Index Fund (NASDAQ:VTSAX) in his tweet as he said that one of the limitations of index funds is that They have a high minimum investment level.
9. Vanguard 500 Index Fund (NASDAQ:VFIAX)
Ranked 9th on our list of best investments in Graham Stephan’s stock portfolio, the Vanguard 500 Index Fund (NASDAQ:VFIAX) offers a decent way to gain exposure to the US stock market on a budget. The Vanguard 500 Index Fund (NASDAQ:VFIAX) is invested in 500 US stocks. On a YTD basis, the Vanguard 500 Index Fund (NASDAQ:VFIAX) is up more than 4% year-to-date (as of March 8). The Vanguard 500 Index Fund (NASDAQ:VFIAX) has exposure to major sectors of the US stock market, including Information Technology (26.5%), Industrials (8.4%), Health Care (14.7%) and Consumer Discretionary ( 10.5%).
Graham Stephan said in his December tweet that the Vanguard 500 Index Fund (NASDAQ:VFIAX) “is widely regarded as the gold standard of index funds as it contains the 500 largest publicly traded companies in the US stock market.”
Vanguard 500 Index Fund’s (NASDAQ:VFIAX) Top Holdings Include Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN) and Exxons. These are also some of the most popular stocks among individual investors and hedge funds. Take Apple for example. According to Insider Monkey’s database of 943 hedge funds, a total of 135 hedge funds tracked by Insider Monkey said they owned shares in Apple, making Apple one of the most popular stocks among smart money. The Vanguard 500 Index Fund (NASDAQ:VFIAX) is doing pretty well in 2023, having gained about 23% through March 9.
Graham Stephan mentioned the Vanguard 500 Index Fund ETF (NYSEARCA:VOO) in his tweet as the equivalent ETF for the Vanguard 500 Index Fund (NASDAQ:VFIAX) if you want to avoid index fund investment requirements.
8. Vanguard Total International Stock Index Fund (NASDAQ:VTIAX) Admiral Shares
Vanguard Total International Stock Index Fund Admiral Shares (NASDAQ:VTIAX) is one of the best ways to gain exposure to non-US stock markets, especially as more and more analysts are growing bullish on international stock markets compared to US markets where volatility is easy is too much to handle.
Graham Stephan said in his tweet that while the Vanguard Total International Stock Index Fund Admiral Shares (NASDAQ:VTIAX) has been flat for the past decade, the fund “can be great for diversification and hedging.”
The Vanguard Total International Stock Index Fund Admiral Shares (NASDAQ:VTIAX) portfolio consists of over 7,500 stocks. Investing in the Fund will give you exposure to Europe, Emerging Markets, the Pacific Region and the Middle East, among others.
Vanguard Total International Stock Index Fund Admiral Shares (NASDAQ:VTIAX) notable holdings include Taiwan Semiconductor Mfg. Co.Ltd. (NYSE:TSM), Tencent and Nestle. Hedge funds in the US are also stacking into these stocks. For example, as of the end of the fourth quarter of last year, 86 hedge funds tracked by Insider Monkey said they owned shares in Taiwan Semiconductor Mfg. Co.Ltd. (NYSE:TSM). The combined value of these operations was over $10 billion. The largest hedge fund stakeholder of Taiwan Semiconductor Mfg. Co.Ltd. (NYSE:TSM) was Stephen Mandel’s Lone Pine Capital, which owns a $774 million stake in the company.
Likewise, at the end of 2022, 18 hedge funds were involved in Tencent.
If you’re looking to find a comparable Vanguard Total International Stock Index Fund Admiral Shares (NASDAQ:VTIAX) ETF, Graham Stephan recommends the Vanguard Total International Stock Index Fund ETF (NASDAQ:VXUS).
7. Vanguard Growth Index Fund (NASDAQ:VIGAX)
Having growth stocks in your portfolio is necessary if you want to take advantage of opportunities in the US stock market. The Vanguard Growth Index Fund (NASDAQ:VIGAX) gives you exposure to large growth stocks. The Vanguard Growth Index Fund (NASDAQ:VIGAX) portfolio consists of approximately 250 stocks. About 45% of the portfolio is made up of technology growth stocks, while 23% is allocated to consumer discretionary.
Vanguard Growth Index Fund’s (NASDAQ:VIGAX) top holdings include Alphabet, Amazon, Microsoft, and Apple. These are some of the safest growth stocks that have the potential to grow over the long term because of the products and services these companies are working on. These are also some of the most popular stocks among top hedge funds.
Regarding the fund, Graham Stephan said in his December 2022 tweet that the Vanguard Growth Index Fund’s (NASDAQ:VIGAX) portfolio includes companies that are expected to grow “extremely rapidly — a high-risk, high-growth strategy.” earnings”.
The Vanguard Growth Index Fund ETF (NYSEARCA:VUG) has been highlighted by Graham Stephan as a go-to ETF for those looking to avoid the high investment thresholds that come with investing in index funds.
6. Vanguard Total World Stock Index Fund (NASDAQ:VTWAX)
Another international markets fund, the Vanguard Total World Stock Index Fund (NASDAQ: VTWAX), provides exposure to stock markets around the world, including the US, Europe and emerging markets. The Vanguard Total World Stock Index Fund (NASDAQ:VTWAX) ranked fifth in Graham Stephan’s December 7 thread on Twitter, and he said the following about the fund:
“This is what happens when you enable all of the above options. The Vanguard Total World Stock Index Fund (NASDAQ:VTWAX) invests in 9,458 stocks around the world!”
Some of the notable holdings of the Vanguard Total World Stock Index Fund (NASDAQ:VTWAX) include Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Johnson & Johnson, Taiwan Semiconductor Mfg. Co.Ltd. (NYSE:TSM), Berkshire Hathaway, among many other giants.
The Vanguard Total World Stock Index Fund ETF (NYSEARCA: VT) is the equivalent ETF for the Vanguard Total World Stock Index Fund (NASDAQ: VTWAX).
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Disclosure: None. Graham Stephan’s stock portfolio: 10 selected stocks was originally published on Insider Monkey.
