| 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. As I write... - Apple is up over 80,000% since 2004
- Alphabet (formerly Google) is up over 12,000% since 2004
- Amazon is up 8,000% since 2004
- Meta Platforms (formerly Facebook) is up over 1,800% since 2012
- Microsoft is up over 2,900% since 2004
- Tesla is up over 38,000% since 2010
- Nvidia is up over 103,000% 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 $4.4 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 $5 trillion, although I have no doubt that one day several will exceed that number. Let's set aside the 80,000% that Apple and 103,000% 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 "quite 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 Gretzky 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. All told, so far this year they've beaten the original Mag 7 by 304% and the S&P 500 by 450%. But now, there's an entirely new presentation that I hosted with Marc Lichtenfeld to inform Members on seven tiny stocks that we believe could soar. It's called the Micro Mag 7 Summit. Good investing, Alex |
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