Two Companies to Avoid in the Stock Market: Trump Media & Technology Group Corp and St James’s Place

Multi-billionaire investor Warren Buffett’s famous rules for the stock market, “Rule #1: Never lose money. Rule No. #2: Never forget Rule #1,” have guided many investors over the years. However, breaking these rules can sometimes lead to disastrous investments. Here are two companies that one investor would avoid like the plague in today’s stock market.

The first company is Trump Media & Technology Group Corp (NASDAQ: DJT), founded by former US president Donald Trump. This social media company went public in March 2024 and is currently valued at $3.6 billion. Despite having a loyal fan base, the company has posted significant losses and questionable business practices, leading some investors to steer clear of this “Trumped up” stock.

The second company to avoid is St James’s Place (LSE: STJ), a financial advice firm that has faced regulatory scrutiny and client complaints. The company’s stock has plummeted over the past year, with a pre-tax loss of £4.5 million in 2023. With its valuation at £2.2 billion and shares at their lowest point since 2012, this company is seen as a risky investment by many.

While there is always a chance for these companies to turn things around and regain investor trust, some are not willing to take that risk. Following Buffett’s rule of never losing money, these companies are being viewed with caution in today’s volatile stock market.