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Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

I. Conservative Recommendation

Costco Wholesale (COST)

A recommendation in Smart Money Masters, Costco is Charlie Munger’s favorite stock and it tumbled 9.76% over the past week on news that is taking over Whole Foods.

Both Goldman Sachs and Deutsche Bank (DB) downgraded Costco, saying the competitive advantage from its food business is at risk due to Amazon. DB reduced its price target for the company to $172 from $187.

Not everyone on Wall Street is jumping ship. Cowen Group reiterated its outperform rating and $190 price target, saying Costco will survive Amazon’s onslaught.

Although the dust has yet to settle, I think this is a textbook case of a market overreaction and a buying opportunity.

II. Aggressive Recommendation

Walmart Stores (WMT)

A recommendation in Alpha Algorithm, Walmart also fell 5.01% on news of the Whole Foods acquisition.

That said, the rationale for buying Walmart is the same as for buying Costco Wholesale (COST) above. It is more “aggressive” in the sense that Costco has a more loyal customer base.


Nicholas Vardy

Nicholas A. Vardy

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U.S. stock markets traded broadly flat last week, with only the Dow Jones Industrial Average eking out a gain of 0.48%. Otherwise, the S&P 500 closed down by 0.63% and the tech-heavy Nasdaq fell by 0.71%. The MSCI Emerging Markets Index ended the week 1.46% lower. Your Smart Money Masters holdings had a mixed week. Restaurant Brands International (QSR) led the week with a 7.44% gain. Baxter International (BAX) jumped 3.46%. Paypal Holding


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