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The Best Stock in a Quarter Century (isn’t what you think)

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AUG 25 2023
 
   
SCOTT WELSH’S ANATOMY OF A GREAT TRADE
 

When people talk about the best stock of modern times, usually Amazon (AMZN) is the name mentioned.

After all, it’s gone from a mind-bending $0.83 (split-adjusted) to $133.70 from 1998-2023:

 
 

That’s about a 16,000% gain (with a massive 90% drawdown along the way). 
 
But AMZN isn’t the best stock of the last twenty-five years.

It’s not even close.

The best stock is Monster Beverage (MNST). 

Here’s a comparison chart between AMZN (candles) and MNST (orange line):

 
 

Amazon isn’t even in the ballpark.

And here’s MNST’s chart:

 
 

It’s gone from a split-adjusted $0.02 to $57.00. That’s a whopping 280,000% return.

Sure, some intrepid investor could have bought and held it all these years, happily suffering 70% drawdowns along the way. (Note: studies have shown that a typical investor can handle about a 10-15% drawdown.)

Or we could trade a stock like MNST.

We could buy when MNST closes twice in a row above the 12-month simple moving average (SMA) and exit (at the very least) when price closes below the SMA. 

If we did that, we would eliminate the massive drawdowns. 

And we give ourselves a chance for big gains. 

For example, if we traded MNST right after a bad Bear Market (sounds familiar), we could have entered in November 2009 and exited in October 2012, catching a move from $3 to $9:

 
 

We don’t have to suffer impossible drawdowns or rush to the computer screen.

We can find big winners that have pulled back, and trade them on a long-term chart.

And still capture big wins.

Happy trading,

Scott

P.S. As a reminder, these historical lookbacks are based on my longer-term Weinstein Stage Analysis method. The charts above use monthly candles and a 12 month simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

Additionally, the teal lines on the chart show the profitable runs.
JEFFRY TURNMIRE
The Monthly Bitcoin Opportunity Unveiled
 

In the realm of Bitcoin, a captivating chance emerges as each month draws to a close…

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Looking forward to having you onboard,

— Jeffry Turnmire

P.S. By the way, did I mention that you can ride this monthly trend without ever stepping away from your regular brokerage account? Click here to watch now!

 
   
 

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