Focused Compounding Ep 395. Analyzing 10-Baggers from the Past 10 Years, Industry Returns, and Snap Judgments from Twitter
67 snips
Jun 16, 2023 AI Snips
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Realistic 10x Investment Goals
- Expecting a 10x return over 15 years for specific stocks is reasonable but challenging for entire portfolios.
- Mistakes and cash holdings typically drag down overall portfolio returns compared to individual stock successes.
Prioritize Earnings Growth
- Focus on a stock's ability to earn and grow over your holding period rather than its current valuation.
- Aim for a 15-17% annualized return combining earnings growth and potential multiple expansion.
Semiconductors Lead 10-Baggers
- Many 10-bagger stocks in the S&P 500 over the last decade are semiconductor companies, highlighting sector-specific growth.
- Significant multiple expansions often accompany strong growth in these successful tech stocks.