Lessons From Two of My Best Stock Picks

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I made some bold claims during the Road Map to Recovery event in my joint presentation with Matt McCall. We discussed a road map that could help you beat the markets by over 11X over the next 12 months and help you learn how to make profits in a post-Covid-19 world. (If you missed it, you can watch the replay here.)

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Now, I’ve been described as a permabull, which means I’m always bullish on stocks, which isn’t true. I simply follow my computer models. In times of economic growth, my models tend to be bullish. And in times of slowing growth or worse, my models alert me to get out.

The bottom line is that I believe in running the numbers — and in being guided by them. That’s key to your long-term success, as it removes your personal biases from the equation. Combining my quantitative approach, and Matt’s “big trend” approach, we developed a unique portfolio just for 2021. It’s designed to make the most of the trends that will have the largest and most immediate impact on the coming year. (You still have time to catch the replay here.)

But this isn’t just a one-time “flash in the pan.” My quantitative system not only informed my predictions at the Road Map to Recovery event — it was also responsible for the greatest wins of my career.

The system behind my Portfolio Grader tool made me “one of the very first to recognize Google’s long-term potential, within months of its 2004 IPO,” as cited in MarketWatch.

And in recent years, it helped me pick stocks that went on to be the top performers among S&P 500 stocks. All of them reflect the same pattern you can use today to help predict future gains.

In 2016, the best S&P stock was NVIDIA Corporation (NASDAQ:NVDA), a leading maker of graphic processing units (GPUs) for computer gaming and the like. In fact, it invested the GPU back in 1999!

I recommended NVDA in May 2016, and in the previous quarter, the company had grown earnings by 38%. At 46 cents per share, versus expectations for just 31 cents, NVDA had “beat the Street” by a whopping 48%.

The company continued to grow earnings throughout 2016, and ended up +207% for the year, earning it the top spot as the best performer in the S&P 500 that year! Meanwhile, I continued to recommend that NVDA position for quite some time. When we cashed it out in January 2019, we’d made even more: +274%.

I also recommended the best-performing stock in 2014 and 2017, too!

In April 2013, I picked Southwest Airlines (NYSE:LUV). Southwest is a company that’s best known for cheap flights, thanks to policies like no baggage fees and no assigned seats, which reduces boarding times. (As we all know, time is money, and that’s especially true if you’re an airline.)

In 2014, LUV closed out the year up +125%. By the time I recommended selling it in February 2016, we’d made far more on our position: +194%.

So, how did I know when to sell? Well, these profits on both stocks simply resulted from my following the cues of my Portfolio Grader.

Below is LUV’s current report card:

There you see the eight business fundamentals I assess for any stock; as you can see, profitability is key. Right now, LUV has a C-rating for Total Grade, with F-ratings across the board. When my Portfolio Grader gives me the cue to sell, I know it’s time to get out.

Best Performer of 2021 …

If there’s one thing I’ve learned in my investing career, it’s that you can’t go wrong if you stick with companies that “deliver the goods” with regard to earnings.

Now, as I look to the year ahead, I’ve done the hard research, run the numbers on key fundamental and quantitative factors, worked with my InvestorPlace colleague Matt McCall, and formed a view on what’s coming next.

Technologies like artificial intelligence (AI), 5G, precision medicine, the Internet of Things (IoT), driverless cars and the blockchain have been around in their early forms for years. Will 2021 finally be the year when these technologies converge to create massive increases in efficiency and convenience?

Where will the huge amount of cash sitting on the sidelines right now be deployed?

In our Road Map to Recovery event, I laid out President Joe Biden’s plans for an infrastructure upgrade and a renewed focus on clean energy. Click here to watch the replay and see why Matt and I both think stocks are a screaming buy now.

Sincerely,

Louis Navellier

 

P.S. Matt and I see a lot of great opportunities lining up for 2021. But you need to be VERY selective with your money moving forward given everything that’s happened in the world.

And you need to have a proven game plan in place for the moments when the markets get rocked.

We both see big moves coming to the market in 2021, and we’ve created a unique approach to exploit these moves for big gains. We go over it in fine detail at our Roadmap to Recovery event. Click here to watch the replay now.

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.


Article printed from InvestorPlace Media, https://investorplace.com/market360/2021/04/lessons-from-two-of-my-best-stock-picks/.

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