Growth Investing

At my premium newsletter Game-Changing Stocks, I have the challenging but exciting task of identifying companies that are set to change the way the world operates. I’m talking about companies that hold the promise of revolutionizing their specific sectors of the economy or companies that create and nurture promising new businesses. And, of course, these are companies that will richly reward investors. #-ad_banner-#If there’s one thing true game-changers have in common, it’s the ability to innovate. But it’s not just companies that are innovative — countries can be, too. An innovation-friendly environment on a country level should, in theory, do… Read More

At my premium newsletter Game-Changing Stocks, I have the challenging but exciting task of identifying companies that are set to change the way the world operates. I’m talking about companies that hold the promise of revolutionizing their specific sectors of the economy or companies that create and nurture promising new businesses. And, of course, these are companies that will richly reward investors. #-ad_banner-#If there’s one thing true game-changers have in common, it’s the ability to innovate. But it’s not just companies that are innovative — countries can be, too. An innovation-friendly environment on a country level should, in theory, do wonders for companies domiciled in this country. Therefore, it should end up benefitting investors, too. So to complement my growing set of promising companies in Game-Changing Stocks, I recently featured a look at a highly innovative country that holds promise of fostering as many game-changing ideas as possible. It’s not a coincidence that so many revolutionary technologies, processes, consumer goods, medicines and devices originated here in the United States: Our country spends a big chunk of its GDP on research & development (R&D). The National Science Foundation put the number at a record $499 billion in 2015. Of that amount,… Read More

To most investors, what we do here at Maximum Profit doesn’t make sense… That’s because our investing strategy goes against nearly everything you’ve been told about becoming a successful investor: diversify your portfolio and buy low, sell high. That strategy simply doesn’t work for the vast majority of investors. How do I know? Market research from Dalbar — a company that’s been looking into investors’ buy and sell decisions since 1994 — found that investors have averaged a paltry 2.1% annualized return over the last 20 years… greatly lagging the broader market’s 8.2% return over that same time period. So… Read More

To most investors, what we do here at Maximum Profit doesn’t make sense… That’s because our investing strategy goes against nearly everything you’ve been told about becoming a successful investor: diversify your portfolio and buy low, sell high. That strategy simply doesn’t work for the vast majority of investors. How do I know? Market research from Dalbar — a company that’s been looking into investors’ buy and sell decisions since 1994 — found that investors have averaged a paltry 2.1% annualized return over the last 20 years… greatly lagging the broader market’s 8.2% return over that same time period. So it’s clear that beating the same old investing drum hasn’t worked for investors. So what does work? Buy high and sell higher… That’s the basic premise of momentum investing. Contrary to conventional wisdom, we want to be buying stocks that are near their 52-week highs, and selling them when the upward momentum runs out of steam. As I told my subscribers in an past issue: Often, new highs create uncertainty among investors. They tend to think that when a stock or the overall market reaches new highs, it’s time to take money off the table. Similarly, most investors would scoff… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA For that half of the population who maybe didn’t already realize… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA For that half of the population who maybe didn’t already realize this, let it be known that women’s fashion is not inexpensive. Luxury fashion prices have shot up 60% over the last decade, nearly twice the rate of overall consumer inflation. A single dress can cost several thousand dollars. To make matters worse, the rise of social media has shortened the season for luxury fashion. Whereas many designers used to produce a spring and fall season, now many are launching four product lines a year to keep up with changing tastes. #-ad_banner-#A 2015 survey of 1,500 women by Barnardo’s, a British charity, found that respondents considered an item ‘old’ after wearing… Read More

As stocks start to wobble after a nine-year bull market, one industry looks like it could break higher over the next few years. This industry missed out on the spectacular bull market gains because of overbuilding, but last year’s collapse in prices could bring a rebound off multi-decade lows. An ETF tracking the industry plunged 63% to its low last year from a high in 2011, but has since rebounded 20% as early evidence of a recovery becomes clear. The selloff was so drastic that even the largest players in the space are now small-cap companies. But now industry is… Read More

As stocks start to wobble after a nine-year bull market, one industry looks like it could break higher over the next few years. This industry missed out on the spectacular bull market gains because of overbuilding, but last year’s collapse in prices could bring a rebound off multi-decade lows. An ETF tracking the industry plunged 63% to its low last year from a high in 2011, but has since rebounded 20% as early evidence of a recovery becomes clear. The selloff was so drastic that even the largest players in the space are now small-cap companies. But now industry is clearing its overcapacity issues and demand fundamentals are picking up. This confluence of events could just make it one of the biggest investing themes of the year. Shakeout In Shipping Helps Fuel A Recovery The boom in commodity prices just after the Great Recession drove many in the shipping industry to rapidly expand their fleets. Fleet growth exploded from 2009 through 2012, with the industry increasing the number of ships in service by an average of 14% a year. The oversupply in shipping caused the Baltic Dry Index (BDI), an assessment of the price to move major raw materials… Read More

Market observers like to refer to companies involved in mature or dying industries as “buggy whip” companies. What is commonly overlooked is that many of these companies, despite their old-fashioned brand image and reliance on dated technology, have been quietly transforming themselves into high-tech, cutting-edge enterprises. And the stocks are usually a bargain. One of my favorite names in this situation is Pitney Bowes (NYSE: PBI). I’ve written extensively about the company in years past but have been out of the stock for quite a while. It’s time to get back in. Here’s why. The stock has given… Read More

Market observers like to refer to companies involved in mature or dying industries as “buggy whip” companies. What is commonly overlooked is that many of these companies, despite their old-fashioned brand image and reliance on dated technology, have been quietly transforming themselves into high-tech, cutting-edge enterprises. And the stocks are usually a bargain. One of my favorite names in this situation is Pitney Bowes (NYSE: PBI). I’ve written extensively about the company in years past but have been out of the stock for quite a while. It’s time to get back in. Here’s why. The stock has given back 35% of its value over the past year. The readjustment has created an extremely cheap forward P/E of 7.6 with an attractive dividend yield of 5.60%. But is the stock a value or a value trap? PBI Is Adapting To The Changing Market You don’t have to convince me that physical mail is a declining business. At the same time it’s important to realize that it will still be around in some form or fashion for quite a few years if not decades to come. You can’t send a guitar you sold on eBay (Nasdaq: EBAY) via e-mail. Read More

For American companies, China is a lot like the Holy Grail. With a population of 1.4 billion, more than three times the size of the United States, making a big splash with Chinese consumers is a quick way to pump up the bottom line. #-ad_banner-#But while China offers great opportunity, winning in this far away land requires great skill and experience. Many top-shelf companies have tried and failed. Transportation heavyweight Uber is one recent example. Uber swept across the planet conquering country after country — until it met China. In 2016, the company basically conceded the Chinese market to local… Read More

For American companies, China is a lot like the Holy Grail. With a population of 1.4 billion, more than three times the size of the United States, making a big splash with Chinese consumers is a quick way to pump up the bottom line. #-ad_banner-#But while China offers great opportunity, winning in this far away land requires great skill and experience. Many top-shelf companies have tried and failed. Transportation heavyweight Uber is one recent example. Uber swept across the planet conquering country after country — until it met China. In 2016, the company basically conceded the Chinese market to local players. Today, I want to share an S&P 500 company and global leader that has cracked the code to succeeding in China. In the next five years, this company will open one new location in China every day – a total of more than 2,500. I expect that to produce record revenue and lift shares to a new all-time high. Starbucks (Nasdaq: SBUX) is one of the most recognized brands in the world. In most major cities across the world, it’s hard to walk a few blocks without seeing the familiar Starbucks logo pasted across a green awning. That global… Read More

Insurance is the best business in the world. It’s not just one of the best, but the very best. After all, insurance is the only business in the world that routinely enjoys a positive cost of capital. Every other business on earth is required to pay for its capital. And the cost of capital is always a consideration when starting or growing a business. But not for insurance. A good insurance company gets all the capital it needs for free. Not only that, but it is actually paid to take it. Simply put, insurance is in a class of its… Read More

Insurance is the best business in the world. It’s not just one of the best, but the very best. After all, insurance is the only business in the world that routinely enjoys a positive cost of capital. Every other business on earth is required to pay for its capital. And the cost of capital is always a consideration when starting or growing a business. But not for insurance. A good insurance company gets all the capital it needs for free. Not only that, but it is actually paid to take it. Simply put, insurance is in a class of its own. But that doesn’t mean the industry isn’t without risks. After all, insurance contracts are set up such that the insurer keeps the premiums even if no loss occurs. But it also means that losses could exceed the amount of a customer’s premiums. And if too many large losses occur, an insurer could face a financial nightmare. That’s the reason insurers are so heavily regulated by governments around the world. The Key To The Insurance Business Thankfully, the best insurance companies mitigate these risks. They ensure the fees they charge for investing a customer’s capital exceed the risks they… Read More

For the last few years, there’s been lots of talk about how this bull market is getting long in the tooth and is ripe for a major correction. After all, this run began in 2009 — eight long years ago. But the truth is stock-market booms don’t die of old age. And the bull market in the 1990s is proof of this. #-ad_banner-#Stocks went up — without a losing year — for nearly the entire decade of the 1990s. As the bull market got older, it didn’t waver or falter. Instead, it ramped up… the S&P 500 returned 33%, 28%… Read More

For the last few years, there’s been lots of talk about how this bull market is getting long in the tooth and is ripe for a major correction. After all, this run began in 2009 — eight long years ago. But the truth is stock-market booms don’t die of old age. And the bull market in the 1990s is proof of this. #-ad_banner-#Stocks went up — without a losing year — for nearly the entire decade of the 1990s. As the bull market got older, it didn’t waver or falter. Instead, it ramped up… the S&P 500 returned 33%, 28% and 21% in 1997, 1998 and 1999, respectively. The Nasdaq went up 40% in 1998 and then 86% in 1999. If you got out of the market in 1997, or even earlier, on the simple premise that the boom was getting long in the tooth… you missed out on the best profits. I’m sure there are people thinking this bull market is getting old and that it is therefore a good time to start avoiding stocks. Of course, they could be correct. But the simple fact is that there’s always a reason to avoid the stock market. Pick your favorite:… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA The modern shaving razor hasn’t changed much since American inventor King… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA The modern shaving razor hasn’t changed much since American inventor King Camp Gillette patented a new type of razor in 1901. That was fine for most people. Shaving is just one of those daily activities you don’t think much about, if you even think about it at all. That changed in 2012 when Dollar Shave Club launched its now legendary viral marketing video. The one-minute promo introduced viewers to a new way of getting their razors. As of mid-2016, the video had been viewed more than 22 million times and helped the company grow to 1.1 million subscribers. #-ad_banner-#Dollar Shave Club raised $163.5 million from early investors and accepted an acquisition… Read More

To comfortably live in an online world, we need to make sure our actions and devices are secure. When dealing with our bank, for instance, we want to know the transactions are secure. We want to rest assured that information in our smartphones is safe, and that we can login quickly and securely into our tablets and laptops. One obvious and widely used means of protecting data is by locking your device, thereby restricting unauthorized access. And modern “locks” are increasingly using our unique human features to establish our identification, a technology known as biometrics.   #-ad_banner-#And when it comes… Read More

To comfortably live in an online world, we need to make sure our actions and devices are secure. When dealing with our bank, for instance, we want to know the transactions are secure. We want to rest assured that information in our smartphones is safe, and that we can login quickly and securely into our tablets and laptops. One obvious and widely used means of protecting data is by locking your device, thereby restricting unauthorized access. And modern “locks” are increasingly using our unique human features to establish our identification, a technology known as biometrics.   #-ad_banner-#And when it comes to utilizing unique human features, what is easier and more convenient than your own fingerprints?   Many iPhone owners would agree that their feeling of security significantly improved after Apple (Nasdaq: AAPL) introduced a fingerprint recognition feature in 2013. The adoption of Touch ID has proceeded smoothly, and improvements in the technology itself have proceeded apace —  today’s second-generation sensor is up to twice as fast as the original version. Driven by the increasingly urgent need for security, as well as consumers’ smooth adoption of such sensors in mobile devices, the market for fingerprint sensors is on fire. According to… Read More