1 Reason To Avoid iPhone Supplier Broadcom
With new cases of the coronavirus spiking in the US and worldwide .
With the already historic unemployment levels and job losses in recent months .
And with many Blue Chip stocks looking vulnerable when they’re supposed to be among the best areas to invest your capital.
There are few safe places to invest today. And this number grows smaller every day this crisis lasts.
The key to continue compounding your investments and build wealth is to keep investing well over time.
This is a huge part of things.
But another huge part of this that few think of is also losing as little capital as possible.
The fewer investment losses you have the more capital you keep. And the more capital you keep the faster you achieve your retirement goals.
To help you avoid bad investments, in recent articles I’ve shown you several stocks to avoid buying…
- 1 Reason To Avoid This 4.4% Dividend Payer
- 2 Reasons To Avoid Mastercard
- 3 Reasons To Avoid Kinder Morgan
- 1 Reason To Avoid Exxon
- 2 Reasons To Avoid Kraft Heinz
Today I want to show you another stock to avoid at all costs so you can continue growing your investment portfolio.
1 Reason To Avoid Broadcom
It’s Got A Lot of Debt
Normally in these articles I talk about things like valuation, profitability, cash flow, the affects coronavirus is having on a company’s financials, among other things.
But frankly none of those matter with Broadcom (AVGO) due to its large debt load.
As of this writing Broadcom is a $152.4 billion market cap company. It supplies parts to Apple’s iPhones, Samsung Galaxy smartphones, and other pieces, parts, electronics, and chips for various products.
Its most recent quarterly data showed it has $8.9 billion in cash. While it has $44.1 billion in short term and long-term debt and capital leases.
It’s debt to equity ratio is 1.87 – above the 1 and below I look to invest in.
And total liabilities make up 70.3% of its balance sheet.
Are these horrific like some other recent stocks I’ve told you to avoid?
- 1 Reason To Avoid Daimler
- 2 Reasons To Avoid Kraft Heinz
- 1 Reason To Avoid AT&T And Its 7% Dividend
- 2 Reasons To Avoid General Motors
But its still too much debt to make me comfortable investing in them. Especially with all the uncertainty in the world today.
With all the craziness going on, I need to invest – and recommend to you – stocks that will be around for decades to help build wealth over the long term.
Typically, this means I invest in companies that have little to no debt compared to their cash and equity.
Broadcom’s large amount of debt makes it too risky for me to recommend. Even though it will continue performing well and get a boost later this year due to the upcoming releases of the latest iPhones and Samsung’s.
And even though it’s not in terrible shape like some other recent stocks I’ve told you to avoid.
For this reason, I recommend you avoid its stock to keep your retirement portfolio safe.
Plus, I’ve already found many other better, safer, and potentially higher return investments for you…
Click the links below to see the stocks we recommend to Depression Proof Your Portfolio and earn safe investment returns.
- 3 Stocks That Will Earn You High Returns In The Coming Depression.
- One Thing To Do Today To Protect Your Investments
- 5 Reasons To Buy British American Tobacco
- 3 Stocks To Depression Proof Your Portfolio – Stock #1
- 3 Stocks To Depression Proof Your Portfolio – Stock #2
- 3 Stocks To Depression Proof Your Portfolio – Stock #3
- 4 Reasons To Buy Cummins To Depression Proof Your Portfolio
- 5 Reasons To Buy JM Smucker
- 5 Reasons To Buy General Mills
- 5 Reasons To Buy IBM
- 5 Reasons To Buy Johnson & Johnson
- 2 More Reasons To Buy J.M. Smucker
- 4 Reasons To Buy Microsoft – And 1 Not To
- 5 Reasons To Buy Sony
- 3 Reasons To Buy Wheaton Precious Metals
- 1 More Reason To Buy General Mills
- 3 Reasons To Buy Monster – And 1 Not To
Disclosure – Jason Rivera is a 13+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above.