The stock market is heading lower -- indeed, all the gains the major indexes made in 2018 have evaporated. So this might not feel like an opportune moment to advocate for stock purchases. Even so, rain or shine, every 10 weeks or so, Rule Breaker Investing podcast host and Motley Fool co-founder David Gardner picks a set of five stocks to recommend, and shares them with anyone who wants to listen. Well, it’s that time again, and he has more than enough companies to choose from. To narrow his options, he set four rules for this sampler. 1. The stock had to have been a big-time winner for the RuleBreaker portfolio over the long term. 2. It had to have had hit a new high in September. 3. It had to have fallen at least 20% from that high in the weeks since. 4. The company name had to start with the letter T.
One that fit that bill -- even the sill starts-with-T part of it -- was distance health care company Teladoc (NYSE: TDOC). It’s a recent pick for RuleBreakers, and it’s massive gains over the year it has been in the portfolio are still mostly intact, even after a recent sharp drop. In this segment, he describes why he likes this business model, and why he’d re-buy the stock from here.
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