Live RECAP: CAVA, PFE, TESLA, ETC
Every Sunday, I go live on TikTok at 10am EST. I used to go live three days a week, but after 3 years, it got to be a little much - the questions were too similar. I’d repeat myself for an hour and answer very few questions.
I joked that I could just record one live and play it every day and nobody would know they were ever different. That’s how similar the line of questioning became. HOWEVER. Every 30 questions or so, someone would ask something that wasn’t just me directing people to my website or my YouTube channel.
So, I decided at a friend’s urging to do a weekly live recap of the stuff you asked but I already covered or you might’ve missed.
March 2nd, 2025 RECAP:
Trump Recession + Warren Buffet
Yes, I think Trump will cause a recession. Whether it’s intentional or due to incompetence, we can argue about forever. But the bottom line is yes, I think there will be a recession at some point due to his tariffs, trade war, inflation, massive government layoffs, etc. And don’t get me wrong, we needed to cut down on gov’t waste and fraud, but the way he’s going about it is reckless and stupid.
So, yeah, we could see a recession. But when? Nobody knows. People asked how will this affect my investments? The answer: It won’t because I am diversified. And it shouldn’t REALLY affect your investing unless you’re going 100% in high risk, high growth, speculative investments.
A diversified portfolio is a healthy portfolio. If you’re the type of investor who plunks down a bunch of money every single month for a 10-30 year period into one technology ETF, one S&P 500 ETF, and one dividend ETF, nothing needs to change. Just keep doing what you’re doin’ and focus on the future. And IF a recession hits and you’re fortunate enough to invest a little bit more, go for it. Investing during recessions can be a massive wealth creator.
If you’re heavy in tech, then yeah, you might want some consumer defensive/utilities/dividend stocks or ETF.
And what about Warren Buffet? He’s causing chaos because he sold a lot of investments and went into cash. Should you follow his lead? No. Relax. You SHOULD read this:
CAVA + PFIZER
These two came up a LOT. Am I nervous about CAVA stock? It is down 24% in the last month.I’ve been investing in CAVA since Day 1 (IPO day) and adding steadily since then. Am I disappointed that it’s down 24% in a month? Sure. Am I worried long term? Nah. Am I worried short term? A little.
Why? Trump. CAVA wants to add around 60 new locations this year. They want to have 1000 total by 2032. Reasonable goal EXCEPT that tariffs could impact this. When you open a new restaurant, you might buy two or three refrigerators, two or three ovens, two or three stoves, two or three dishwashers, all those aluminum and to-go containers All of these things come from China, by the way. But they’re not opening ONE restaurant. They’re opening dozens. That’s going to be expensive. Add in tariffs on Canada for lumber and the cost of renovating all those stores and putting in tables and chairs becomes more expensive. Not to mention the rising cost of food.
CAVA CEO said he wasn’t too worried, but I don’t know if I buy it. If he said he was nervous, the stock would tank. Maybe they’re not trying to spook investors? Maybe they’re hedging their bets that things won’t be too bad? So I am short term bracing for more downside. BUT I could be wrong, so I am continuing to add a little bit on big down days. BUT: I am adding a little less than usual.
A few people also asked about Pfizer. Why did I buy it?! I bought it for their dividend. It’s 6.5% right now with 14 years of dividend growth AND a B- dividend safety grade. I don’t expect it to get cut. I also don’t expect the stock to get crushed. But with RFK, Jr. anything’s possible. This is also why I like to be diversified.
HOW MUCH MONEY SHOULD I INVEST/WHAT SHOULD I DO AT THIS AGE
This is another question I am asked ALL the time. The thing is, you’re giving me very little information. I often get asked how to invest $10,000 or $5,000 or $100 a month. The reason this is hard to answer is because all you’ve told me is how much you have. You haven’t said if you have medical bills, student loans, credit card debt, kids, etc. Most importantly, you haven’t told me your age. The answer will be different if you’re 20 or 50.
But it is ALSO hard to say, “Here’s what you should do!” Also hard because I am not a financial advisor and I can’t legally tell you what to do. But I could offer some things you might consider. The two links above are to my Investing by Amount and Investing by Age playlists on YouTube.
If you’re on the younger side, you might opt to focus on tech ETFs first (and in a Roth IRA to avoid a big tax bill later). If you’re more of a conservative investor, you could opt to focus heaviest on an S&P 500 ETF first and THEN a tech ETF. And if you were closer to retirement you might opt to focus more on a dividend ETF and some bonds.
TESLA
I was asked a dozen times if people should sell their Tesla stock. I cannot tell you what to do. However, after Elon’s Nazi Salute, I did sell mine. If you’re asking because you’re worried about the massive short term drop, you’d have to do some research on the stock, assess whether you’re concerned about Elon’s political ties to Trump, the global dislike of Elon and how that could impact the stock going forward and if it worries you. If you’re diversified and Tesla isn’t your ONLY or LARGEST position, you might opt to continue to hold. If you are worried, you might rebalance. Ultimately, the call is yours.
‘Till next Sunday 🫡
