Hypergrowth Stocks

Discussion in 'Investing' started by robertbanking, Nov 16, 2021.

  1. robertbanking

    robertbanking New Member

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    Hello folks, hope everything is going well.

    I primarily have established long term holding stocks in my portfolio like Apple and Adobe Software but this is not going to change my life anytime soon. I wanted to kindly research more smaller companies with growing profits that might see a larger increase in the share price please? Does anyone have any ways to research on how to kindly find these types of hypergrowth shares please which might return alot more than established companies like Apple?

    I understand its important to have an balanced portfolio i do have some larger companies that pay dividends also, but wanted to try research some smaller based companies.

    Thank you so much for all your support. I find this forum a great place to gather new ideas and everyone is so helpful and knowledgeable. I cannot thank everyone enough.
     
  2. robertbanking

    robertbanking New Member

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    Hello, if anyone could kindly help with the above even if its only one or two sentences i would be thankful. Thank you very much and hope you are all having a great week. All the very best.
     
  3. TomB16

    TomB16 Well-Known Member

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    Welcome to Stockaholics, Robert. :)

    People trying to get rich quickly perform worse than patient people, with only an infinitesimal number of exceptions.

    "The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

    I will divide my response into three parts.

    1) The highest probability way to get rich quickly is to tell people they can get rich quickly if they give you money. People will believe you because they want to believe it's possible to get rich quickly. In this way, you can amass a lot of money in a short period of time through the miracle of fraud.

    2) As far as I know, I'm the only one who has discussed research and examination of companies at this site. For that matter, research is almost never discussed with regard to "investing". Almost everyone trades on the idea, "I think this stock is going to go up." In other words, their gut. People are way too lazy to go to the effort proper research requires. I research everything I own but my approach is not 100% objective, nor can any approach be 100% objective; I just do my best to be as objective as I am able.

    Some people consider technical analysis to be research. I do not but perhaps another person can guide you in this black art.

    I won't restate my approach for your convenience but there are many pages of detail in my investing blog (a couple of threads down). If you want to get rich quick, there is no chance you will sift through my thread to find my approach. There is also the Graham method. Peter Lynch hasn't talked much about research but he has given some very clever hints. Bill Ackman has a beautifully produced video on corporate accounting and reading financial statements. All of this info is online, waiting for you to read it. You will want it spoon fed to you so let's drop this line of thought...

    3) Researching a small growth company is a completely different process than investigating a large, stable, company. Small growth companies look like a nightmare when judged by the same metrics of large companies producing profit. Small growth companies require a different approach and that approach will be almost entirely subjective.

    It can be done. I bought Tesla in 2016; I was sent private messages with threats of violence for mentioning the purchase online.

    It cannot be done as reliably as a competent investor can analyze and purchase large, stable, companies. I've gone over the risk/reward prospect of micro cap companies a couple of times but, again, it will require a few minutes of searching so let's forget about that.

    Let me end this response with something other than cynicism.

    Picking micro, growth, companies is generally a losing proposition. Generations of people have been redistributing their wealth to charlatans since before you were born.

    There are exceptions, however. Those exceptions fall within your zone of knowledge. If you have industry knowledge and are aware of the players and dynamics, your odds of succeeding with a micro-cap stock are orders of magnitude higher. The trick is being sufficiently self aware that you know when you are within your zone of specialized knowledge and when you leave that zone to enter the zone of hubris. If you can get a handle on this, you have a very real chance of success in your area of expertise.
     
    #3 TomB16, Nov 16, 2021
    Last edited: Nov 16, 2021
  4. ddebrazza

    ddebrazza Active Member

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    One company that recently IPO'd that I think has TREMENDOUS upside is Clear Secure aka YOU. "because YOU are YOU"

    They are a company that is working to make all aspects of life friction-less through the use of biometrics.

    They are already in some sporting stadiums and airports but plan to expand into other moats.

    Currently trading at 38.57$
     

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