Matt McCall will talk about his Early Stage Investor criteria and what he’s looking for when finding potentially big winners in his special Bull Market Confidential webinar on Tuesday, October 20 at 4 p.m. ET. But let me share one with you right now…
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Early Stage Investor Picks
In early February, Matt McCall released a special portfolio of small stocks to his Early Stage Investor readers. These stocks met all of Matt’s strict criteria, and he had big expectations that they could make his readers a lot of money over time.
This year is fuzzy for all of us, so let me remind you that early February was right before COVID-19 started to get bad in the United States.
Matt McCall released the portfolio exactly two weeks before the market began falling into what would become the fastest bear market in history. So yeah, crummy timing. But I learned a long time ago that the best way to build life-changing wealth doesn’t depend on timing the market
It depends on timing your investment. You want to invest early in innovative companies operating in hypergrowth trends. Even if his timing in the market isn’t perfect, these smaller companies still have the ability to greatly outperform the larger stock indexes.
Matt McCall’s Early Stage Investor Portfolio
More than eight months after he started this portfolio and his subscribers endured a 20%+ drop in the indexes, the basket of small stocks now posts an average return of 64%.
The Dow is still down since February 5.
The S&P 500 is a little better, up nearly 5%, but this portfolio is beating it by almost 13X.
The Nasdaq has been the strongest index, but Matt McCall’s portfolio is still 2.8X higher than its 23.4% gain.
What makes this portfolio special? It’s filled with small companies on the cutting edge of innovation. Three have more than doubled in just eight months.
Here’s the important takeaway:
A small company that is part of a long-term growth trend and meets Matt’s criteria tends to soar no matter what the economy or stock market is doing.
That said, all small stocks are not created equal. I think we know that. The key is finding the right ones.
Matt McCall’s Bull Market Confidential Webinar
Matt McCall will talk much more about his criteria and what he’s looking for when finding these potentially big winners in his special Bull Market Confidential webinar on Tuesday, October 20 at 4 p.m. ET. But let me share one with you right now…
You want to find companies that are hunting elephants and not mice.
There’s a more technical way to determine that. It’s analyzing the company’s total addressable market, or TAM for short. Simply by doing that, you’re on your way to finding stocks that can turn the average investor into a millionaire.
The TAM is basically the potential size of a specific sector or trend in dollars. The larger the TAM, the bigger a company’s potential.
For example, a restaurant that offers everything from burgers to pizza to vegetarian food has a much larger TAM – or potential market – than a more narrowly focused restaurant that might offer only one thing, say plant-based Ethiopian food.
One good example of a microcap stock that went after a big market and succeeded is Monster Beverage (MNST).
Monster’s flagship product is an energy drink, full of sugar, caffeine, and other stimulants. It might sound like a niche business, especially if you like to stick with coffee. But Monster Energy became a phenomenon in the early 2000s when a huge shift in consumer tastes was going on. Millennials didn’t want Folgers Coffee. They wanted energy drinks.
The company’s drink revenue went from $50 million in 2003 to $1.7 billion by 2011. And by late 2007, the stock had already gained 16,000%!
Today, this pioneer in energy drinks is a household name, and the stock is now valued at $43 billion. The shares have climbed 45% in the past year, which is great, but wouldn’t you prefer those huge early gains?
That’s what Bull Market Confidential is all about.
Buy a stock like that early and you stand to make exponentially more money than you would otherwise.
Yet, in their early days, these companies are rarely followed by Wall Street analysts… often ignored by mainstream news outlets… and completely misunderstood by the average investor.
That’s what makes them such amazing opportunities.