RH is a buy; potential for stock to triple in 12-24 months if housing market recovers in 2027/28, though 50% downside risk exists.

You know, RH is a great example of that, right? RH did a massive $2 billion share buyback in 2022 during the golden age of their business. Look at RH's net income at that time, right?

It was incredible. The margins they achieved were incredible. It was like, "Oh my God, this business is at its best right now, isn't it?"

The stock price was around $700 or more in '21, '22, right? I think it went above 700 in 2021, right? Take Gary Friedman, he's a great business builder, isn't he? When he took over RH, the company was on the verge of bankruptcy.

He has turned it into an incredible brand of high-end furniture, which is truly brilliant and extraordinary.

But the man doesn't have much idea about the stock market, right? He bought back $2 billion worth of shares at a very low price. He could have bought the same shares today for 50 percent of the price he bought them for or even less, right? This was a very bad financial decision.

Okay, the first of the four stocks I bought today is RH. RH, it was a $12,000 purchase, $12,253 to be exact. I bought 100 more shares of RH.

As you know, I've talked about this stock a few times on the channel recently. In my opinion, this is a great opportunity to buy for RH. Risky stocks, if business conditions worsen or something like that happens.

That is, the risk of a price drop remains. For example, can the stock price be halved? Sure, why not?

But you have to understand, if the housing market turns around in 2027 or 28, you could see RH's stock price triple in just 12 to 24 months. So the question is, is there a possibility of a 50 percent price drop?

Yes. But if you say there's a real chance it will triple in the next 24 months, then there are very few stocks where you can triple your investment in 24 months, right?

And it's one of those rare stocks that I look at and think, "Oh, if we get this right and the housing market slowly turns around in 2027 and '28, there could be great gains, right?"

"But right now, nobody wants this stock." Treasury yields are much higher now. The housing market is almost dead now, right? No one wants a stock like RH right now.