Discover the hosts' three favorite investment categories for 2024, including cyber security, artificial intelligence, and cryptocurrency. They discuss the growth and opportunities in these sectors, highlighting specific companies. They also provide advice on investing in Roth IRA, finding cash flowing businesses, and their plans for future episodes.
Investing in the cybersecurity industry, particularly key companies like Palo Alto Networks and CrowdStrike, offers long-term growth potential due to increased spending in cybersecurity infrastructure and risk management for 2024.
Investing in the hardware sector and businesses focusing on efficiency driven by AI, such as NVIDIA, Broadcom, AMD, and Palantir, presents an opportunity for significant cash flow growth as these companies leverage artificial intelligence in their operations.
Deep dives
Cybersecurity - A Growing and Lucrative Sector in 2024
The podcast episode discusses the continued growth and investment potential in the cybersecurity industry. The hosts highlight the significant spending projections in cybersecurity infrastructure and risk management for 2024, with a 14% increase compared to the previous year. Key companies in this sector, such as Palo Alto Networks, CrowdStrike, and SentinelOne, are expected to benefit from this growth. The hosts emphasize the long-term potential of investing in AI and cloud infrastructure, as the expansion of these technologies will require robust cybersecurity measures. They suggest a buy-and-hold strategy for investors interested in this sector.
Artificial Intelligence - Promising Opportunities in Hardware and Business Efficiency
The hosts express their excitement about the continued growth of artificial intelligence and highlight two key areas for investment: the hardware sector and companies focusing on business efficiencies driven by AI. They mention NVIDIA's success in manufacturing chips used in large language models, highlighting the increase in stock prices and suggesting Broadcom, AMD, Taiwan Semiconductor, and Marvel Technologies as potential investment opportunities. Additionally, they discuss companies like Palantir, Salesforce, and Google, which are expected to leverage AI in their operations, leading to significant cash flow growth over the next few years.
Cryptocurrency - A Lucrative Asset Class for Consideration
The hosts assert that cryptocurrency, specifically Bitcoin and Ethereum, should be considered as part of a diversified portfolio. They emphasize the substantial returns seen in 2023, citing the impressive growth percentages of Bitcoin, Ethereum, and other cryptocurrencies. The hosts encourage listeners to consider allocating 5-15% of their investable assets into cryptocurrencies, highlighting the potential upside and the importance of dollar-cost averaging over time. They mention popular cryptocurrencies like Solana and Fetch.ai as potential investment options, while reminding listeners to conduct their own research and understand the risks involved.
Finding Cash-Flowing Businesses - Strategies for Success
In response to a question about finding cash-flowing businesses, the hosts share their preferred methods. They recommend using platforms like BizBuySell, LoopNet, and Facebook groups to find opportunities, and they also highlight the strategy of driving for dollars, where potential investment opportunities can be spotted through observing areas of growth and development. The hosts stress the importance of conducting thorough due diligence, including reviewing business financials, negotiating favorable terms, assessing licenses and debts, and considering owner financing as a potential option. They advise investors to continuously research and remain informed before making any investment decisions.
In this episode of the Rich Habits Podcast, Robert Croak and Austin Hankwitz share their three favorite investment categories for 2024. With that being said, this is not financial advice and we very much encourage people to do their own research.
Remember, there's no such thing as timing the market. We'll be slowly dollar cost averaging into these categories all year long.