The creator invested heavily in Huntington Engles, which paid off, aligning with a strategy of investing in military stocks when Democrats are in power.
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Why Would I Buy Stocks When Everything's Overvalued?
Dividend Compounders with CheeseMay 31, 2026
The creator discusses upcoming earnings reports for cybersecurity and retail companies, and reviews recent performance of Costco, Zscaler, and Salesforce. They express a preference for buying stocks like Costco when their multiples are suppressed and note that Zscaler and Salesforce experienced significant volatility after earnings, with Salesforce ultimately rallying. The creator believes AI will enhance, not replace, software, and categorizes software companies into tiers for investment.
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Tickers discussed in this post
Home Depot is mentioned as a peer to Tractor Supply Company that has also experienced a selloff and is near its one-year low.
Lowe's is mentioned as a peer to Tractor Supply Company that has also experienced a selloff and is near its one-year low.
Dollar Tree is mentioned as having an entirely different business model and strategy compared to Dollar General.
Intel is mentioned as a benchmark for government-backed stocks with potential.
ABM is a stable dividend payer in waste management with a 3% yield and a long history of dividend growth, making it a good passive income stock.
Toast is preferred over Service Titan due to its superior quality and focus on the restaurant industry, handling all aspects from orders to logistics.
Lockheed Martin was a key investment that paid off, aligning with the creator's thesis on military stocks during Democratic administrations.
Oshkosh Corporation was a significant investment that proved successful, fitting the creator's strategy of buying military stocks during Democratic presidencies.
Huntington Ingalls Industries was a successful investment due to anticipating increased military spending under Democratic administrations.
Smith and Wesson is struggling due to political trends, specifically under Republican administrations which historically see reduced firearm sales.
Nike is seen as falling out of favor with consumers, particularly sneaker enthusiasts, due to changing fashion trends.
The creator expresses strong dislike for buying overvalued stocks, using Lululemon's drastic price drop from $511 to $131 as a cautionary example.
Oracle is identified as a company where significant sell-offs could present a buying opportunity.
SAP is a Tier 2 software stock the creator doubled down on, seeing significant sell-offs as a buying opportunity.
ServiceNow is identified as a company whose significant sell-offs could present a buying opportunity.
The creator prefers Target over Macy's, seeing potential for it to become the next Costco due to its strong customer base and reputation.
The creator questions Berkshire Hathaway's decision to sell Amazon stock.
The creator believes Medtronic is well-valued and will set the tone for other medical device stocks, considering a potential entry around $69.
Tractor Supply Company is a preferred dividend compounder with a low forward PE of 14.5, a unique business model, and a recent selloff making it attractive.
United Health is mentioned as a past investment where the creator put 30% of their capital and benefited, drawing a parallel to their regret about cybersecurity investments.
Microsoft is mentioned as the creator's cybersecurity exposure via Windows Defender, into which they dollar-cost averaged instead of investing in Palo Alto.
HPE is seen as a parallel play to AI physical infrastructure and is expected to post positive earnings and pump.
Broadcom is mentioned as part of the circular financing within the AI sector.
Meta is mentioned as part of the circular financing within the AI sector.
Nvidia is mentioned as a key player propping up AI data centers and is part of the circular financing within the AI sector.
Google is mentioned as one of the AI-related plays that the market is pricing in for aggressive growth.
AMD is mentioned as an AI-related play that the market is pricing in for aggressive growth.
Walmart is seen as a strong retail investment due to its potential to increase private label sales and improve margins.
Ulta Beauty is mentioned as a retail chain reporting earnings this week.
Macy's is mentioned as a retail chain reporting earnings this week.
Five Below is mentioned as a retail chain reporting earnings this week.
Dollar General is mentioned as a retail chain reporting earnings this week.
Rubrik is mentioned as a cybersecurity company reporting earnings this week.
CrowdStrike is mentioned as a cybersecurity giant reporting earnings this week.
Palo Alto Networks is mentioned as a cybersecurity giant reporting earnings this week.
Intuit is mentioned as a company where significant sell-offs could present a buying opportunity.
Adobe is mentioned as a software company that rallied by the end of the week, benefiting from AI.
Salesforce's stock rallied significantly by the end of the week despite an initial post-earnings dip, driven by AI's positive impact on software.
Zscaler experienced a significant sell-off after earnings but rebounded aggressively, presenting a near-miss buying opportunity.
Costco is a good buy when its trading multiple is suppressed to historical lows around 25-28.
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