2 Surprising Stocks Up 3,000%. Plus, Mid-Cap Picks.
Nov 1, 2024
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Amy Zhang, a portfolio manager at Alger specializing in small and mid-cap stocks, joins for an insightful discussion on unexpected investment successes. She highlights impressive growth from Builders First Source and Fair Isaac Corporation, comparing these to traditional sectors. The conversation also dives into the evolving landscape of credit scoring, showcasing innovations in AI. Zhang emphasizes the benefits of mid-cap stocks and shares her top picks, revealing exciting opportunities for savvy investors.
Fair Isaac and Builders First Source demonstrate how niche industries can deliver extraordinary stock returns driven by demand and efficiency.
The podcast highlights NVIDIA's remarkable evolution from video game chips to a leader in AI supercomputing, showcasing transformative market strategies.
Deep dives
The Real Danger of Distracted Driving
Distracted driving poses significant risks on the road, with the potential for severe consequences. The message emphasizes the importance of paying attention while driving, suggesting that common distractions can lead to fatal accidents. It contrasts this danger with more well-known fears, highlighting that the danger is often not what people expect. The slogan, 'Eyes forward, don't drive distracted,' encapsulates the urgent need for focus when behind the wheel.
Stocks That Surprised the Market
NVIDIA and AMD emerged as the top performers in the S&P 500 over the past decade, driven by their innovations in artificial intelligence and computing technology. NVIDIA's staggering 31,000% return reflects its strategic positioning in the market, starting with video game chips and evolving into a leader in supercomputing for AI. Additionally, Fair Isaac and Builders First Source showcased impressive returns, with Fair Isaac profiting from its established brand in credit scoring and Builders First Source capitalizing on the growing demand for pre-assembled building components. These examples reveal the characteristics that lead to extraordinary success in unexpected sectors.
The Rise of Credit Scoring and Construction Supply Companies
Fair Isaac, known for its FICO scores, has established a strong foothold in the credit scoring industry due to its recognized brand and government backing. The ability to raise prices without substantial pushback highlights its unique position, as most lenders utilize FICO scores for loan assessments. In the construction sector, Builders First Source has thrived on the urgent demand for housing and the increasing efficiency of manufactured components, setting it up for future growth despite current market challenges. Both companies illustrate how operating in niche industries can yield significant returns when demand and operational efficiencies align.
Jack explains how credit scoring and lumber have produced A.I.-like returns over the past decade. Amy Zhang from Alger shares up-and-coming growth stocks.