It Might Be Time To Buy High-Growth Stocks

May 25, 2021 2:24 PM ETQQQ, SPY, ARKF, ARKG, ARKK, ARKQ, ARKW, ARKX112 Comments

Summary

  • I normally never do short-term market predictions and I thoroughly believe that they are all just opinions, including this one.
  • That doesn't mean that we can't discuss the current state of the market and more in particular that of high-growth stocks.
  • A few elements might point to a bottom (or near bottom) for high-growth stocks like those in the ETFs of Ark Capital.
  • Inflation could be high over the next year, but I think over the longer term, inflation will remain under pressure, despite the generous money flow from the Fed.
  • The element that might play a big role here is the deflationary pressure of technology. I explain what I mean and give a few examples.
  • This idea was discussed in more depth with members of my private investing community, Potential Multibaggers. Learn More »
Cloud Network Solution
Photo by da-kuk/E+ via Getty Images

Introduction

Tech has had quite a serious correction in the last few months. Big tech, represented by the Nasdaq (QQQ), was not hit so hard, although it underperformed the S&P 500 (SPY) year-to-date.

Chart
Data by YCharts

Hit especially hard were

We all dream of multibaggers, stocks that go up 10 times or 100 times over the years. That's exactly what Potential Multibaggers focuses on.

Potential Multibaggers is not for those who trade in and out of positions but for long-term investors who want life-changing returns. The results are there: Shopify at $77, Sea at $54, Okta at $64, The Trade Desk at $195 etc. And that's from a concentrated portfolio, not from what seeing what sticks.

And you get much more: exclusive updates, several live portfolios, watchlists, a great community, webinars, etc. Feel free to start the free trial now!

This article was written by

From Growth to Value profile picture
31.06K Followers
Potential Multibagger helps you find multibaggers early on.

I am a 46-year old investor with a long-term perspective and that means I mainly think about the future when I invest. I try to uncover multibaggers early on. Picks include Shopify ($7.78), Crowdstrike ($98), The Trade Desk ($19.5), Cloudflare ($39) etc.

The strategy is simple but not easy: find disruptors that have a very high quality and hold them for a very long period. I try to identify stocks that have the potential to go up 1,000% and more over the next 10 years. I do deep research for the stocks that I pick to know if the quality is high indeed. 

I do not care about what my selection of stocks will do next year, but what the result will be over the long term. To paraphrase Warren Buffett: "You should only have stocks that you would feel comfortable having if the stock market closed up for 10 years."

I appreciate your comments because I believe I can learn a lot from your feedback and I believe in the wisdom of crowds.

Disclosure: I am/we are long AMZN, FVRR, SKLZ, TDOC, TTD, ZM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (112)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.