Over time, successful companies increase their sales and profits. And their share prices rise to reflect that. That's why investing in an S&P 500 fund has been rewarding for patient investors. It's been so rewarding, in fact, that the only reason to invest in individual stocks is if you sincerely believe you can do substantially better. That's not easy. But the facts show that The Oxford Club has done this for more than two decades now. Last year, for example, we invited new Members to join us by offering them a new portfolio called "The Next Magnificent Seven." At the time, the tech stocks in the original Magnificent Seven - Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla - had become wildly popular. So popular, in fact, that I called this "the most crowded trade on the planet." Traders and investors everywhere felt they had to own these seven stocks. Why? Because those were precisely the ones they wish they'd owned earlier. I said last year - and I'll repeat it now - that those are dominant companies that should prosper for years to come. But it is not just unlikely that they will do as well in the future as they have in the past. It is completely impossible. Trust me: That will not happen in your lifetime or mine. How can I be so confident? Well, let's use reason - rather than emotion - to view the potential here. - Apple is up over 40,000% since 2004
- Alphabet (formerly Google) is up over 5,000% since 2004
- Amazon is up 7,000% since 2004
- Meta Platforms (formerly Facebook) is up over 1,500% since 2012
- Microsoft is up over 1,700% since 2004
- Tesla is up over 25,000% since 2010
- And Nvidia is up over 50,000% since 2004
Spectacular returns... all of them. So who's to say this can't possibly happen to these stocks all over again? Me, for one. Nvidia has a market cap of approximately $3.5 trillion. It is a fast-growing company that makes the super-powerful chips that the burgeoning AI industry depends on. It's a great firm. However, it's worth noting that there has never in the history of the world been a company worth $4 trillion, although both Apple and Nvidia have approached that number. And I have no doubt that one day one of them - as well as other companies - will exceed it. Let's set aside the 40,000% that Apple and Nvidia have returned over the past two decades. What are the chances of either stock rising even 10-fold from here to a market cap of $40 trillion? Bear in mind, the entire U.S. economy last year was less than $30 trillion. For a single company's shares to be worth 133% of the nation's total annual output would be not just a feat. It would be impossible. Yet there are many smaller companies that could rise 10-fold or more. And no doubt many of them will. Some, in fact, will even match or exceed the past returns of The Magnificent Seven. Given this reality, I told Oxford Club Members - and prospective Members - that they would be far better off investing in "The Next Mag Seven" rather than the current seven. The same way Wayne Gretzsky insisted that he became the NHL's all-time leading scorer not by chasing after the puck but rather by skating "to where the puck is going to be." How has this strategy worked out? You can be the judge. As I write, the Original Mag Seven are up 22% over the past 52 weeks. Not bad. After all, the S&P 500 is only up 9% over the period. But the Next Mag Seven? They're up a collective 84%. That's not only eight times as much as the broad market. It's almost four times as much as the Original Mag Seven. And our big outperformance has continued this year. Since the market bottom on April 8, the Original Mag Seven are up 30.3%. Again, not bad. But our Next Mag Seven are up 52%. So, which seven tech stocks are turning in this red-hot performance? If you're an Oxford Club Member, you already know. (Liberty Through Wealth is a free e-letter available to non-Members.) If you're not an Oxford Club Member - but would like to learn more about these seven outperformers - just click the link here. Warning: I try to make a strong case for investing in them, for two reasons. The first is I really believe in them - and I know Oxford Club Members are making a ton of money since I get emails from them every day. The other? I don't want you to end up like that early client, thinking you "coulda-woulda-shoulda." Good investing, Alex |
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