Three months ago, shares of space tourism pioneer virgin galactic (SPCE) were wavering.
Insiders sold the shares in droves – the company founder (Richard Branson), the VC investor who floated the company (Chamath Palihapitiya) and the fund manager who focuses on growth stocks like Virgin Galactic (Cathie Wood) collectively sold about $ 400 million over the course of a month in supply — and competitor Blue Origin had just announced it would start selling tickets for rides on its own space tourism rocket.
Shares of Virgin Galactic plunged from over $60 in February to a low of $14 in mid-May.
Everyone was bearish on the stock… well, everyone except me.
I wrote about that time that Wall Street was unnecessarily short-sighted, and that insider sales and increased competition in a startup company are about to do something that no one has ever done before — flying people into space commercially — not news. .
I told investors to step back, look at things from 120 feet, and understand that over the next decade, Virgin Galactic will be a massive, unique, never-before-seen space tourism that will generate billions of dollars in annual revenue and hundreds of millions of dollars. will generate net profits.
And thus, I told people to buy the dip.
A few weeks later, Virgin Galactic successfully completed a flawless test flight to space. Days later, Virgin received FAA approval to commercially fly paying customers into space. A month later, the Richard Branson company flew into space in a flight that had been delayed by 15 years.
And amid all those developments, Virgin Galactic stock rose from $15 to over $50, more than triple the money from investors who listened to me and bought the dip in May.
OK…but why am I telling you all this?
Because the The secret to scoring 10x returns and unlocking generations of wealth in the stock market lies in the lesson of the Virgin Galactic story.
You have to understand: this is not an isolated incident. My investment career – that counts 21 stock picks that have risen 10x or more in the past 5 years alone – is littered with examples of Wall Street being unnecessarily short-sighted on a stock, and I’m taking advantage of that.
In 2015, Wall Street said that a small semiconductor company called Advanced micro-devices (AMD) would go out of business — but I banged on the table that the company was about to pioneer a CPU breakthrough that would change the company’s fate forever.
Since then, AMD share rose by a whopping 4.962%.
In 2016, Wall Street hated little-known ones Chegg (CHGG) as a struggling textbook company with a cash burn problem — but I screamed from the bottom of my lungs about the long-term potential of Chegg’s digital education platform offering the opportunity to fundamentally change the way students learn.
Since then, Chegg shares rose no less than 2.554 %.
In 2017, a famous short seller named e-commerce solutions provider Shopify (STORE) a “get rich quick” as Wall Street analysts doubted a small payments company called Square (SQ). But I told people that Shopify was creating the future building blocks of online retail, while Square ushered in a new era of cash commerce that would make cash transactions obsolete.
Since then, Shopify inventory increased no less than 1,521%, while Square has stock shot up no less than 1.449%.
In 2018 it was The trade desk (TTD) — a programmatic advertising company that Wall Street had doubts about, but which I said had enormous long-term potential to create a new form of smarter, better, and faster advertising. In 2019 it was Tesla (TSLA) – the EV giant everyone doubted, but I always said would redefine the auto industry.
Both stocks are up more than 10x since I told investors to buy them.
And in 2020, when the Covid-19 pandemic hit and Wall Street panicked, I told everyone to sit back, relax, buy the dip and go all-in on next-gen work from home, digital media, telehealth. , and e-commerce stocks that would thrive in a social distancing environment.
It was all those stock picks that gave me the title of the the world’s #1 stock picker in 2020, according to TipRanks, where I beat over 15,000 other analysts.
Sure, you get the point…
The common thread here is “big picture thinking– or the ability to zoom out, ignore the daily noise that Wall Street likes to pay attention to, and hyperfocus on the long-term secular trends driving consumer and business behavior.
This is what venture capitalists do.
While hedge fund managers get caught up in the daily noise of “this earnings report was right” and “missed that economic report,” venture capitalists ignore all that noise, make investments based solely on long-term trends, and stick to those investments through thick and thin.
It’s no wonder that VC investors give back 20% a year, while hedge fund managers only give back 10% a year…
Short-term thinking is the bane of long-term success in the financial markets.
To really “win” in the stock market and score 10X, 20X, even 30X returns, you have to adopt long-term thinking – you have to adopt the VC mentality.
And that’s what I see of myself as – a VC investor in the stock market… a person who always zooms out, ignores the noise, looks at the big picture, invests in emerging hyper growth trends, holds onto those trends through volatility, and unlocks progressively long-term asset creation, while hedge fund managers are stuck with 10% a year to repay.
That is my investment philosophy in a nutshell.
And it’s the investment philosophy of my ultra-exclusive research advice, The Daily 10X Stock Report.
For readers who don’t know, The Daily 10X Stock Report is a super-unique service where I do the unthinkable: every day the market is open, I’m giving away a small selection of hypergrowth stocks with the potential to rise 10X in value.
It’s basically VC investing applied to the stock market. I ignore the sound. I look at the big photo ideas. And I’m highlighting Wall Street’s smallest companies with the most long-term upside potential.
Think about The daily 10X as the keys to becoming your own version of a millionaire tech VC.
And I’m just blowing hot air here… this service has had the potential to make some people millionaires already. The daily 10X is just a year old, and in that year I almost identified myself 100 three-digit winners and 6 different stocks that have increased in value 10x or more.
So what are you waiting for?
Click here, and do what all investors should: Become a venture capital investor crushing hedge fund managers every year.
At the date of publication, Luke Lango had no (direct or indirect) positions in the securities referred to in this article.
By exposing early investments in hypergrowth industries, Luke Lango puts you on the ground floor of world-changing megatrends. It’s how its Daily 10X Report has averaged a ridiculous 100% return on all recommendations since its launch last May. click here to see how he does it.
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