Don’t Let Conventional Wisdom Drag Down Your Portfolio Gains

Anyone who wants to claim that “retail is dead” should take a look inside an Ulta Beauty (ULTA) store. It looks like Disney World for anyone interested in makeup and beauty products. This “makeup superstore” is a key part of any shopping trip for millions of American women.

While many brick-and-mortar retailers have struggled since 2009, Ulta is one of the world’s top performing stocks, up 1,370% since the end of 2009. Those are the kind of returns we’re looking for in my new Microcap Millionaire Project – and, back in the day, Ulta was itself a great small-cap play. So it makes a great case study for us now.

In 1990, Ulta’s founders opened their first five stores around Chicago. The store’s goal was simple: Provide women with an incredible place to buy cosmetics and personal care products. This included offering a giant selection of products (both high end and low end) and grew to featuring in-store salons, brow and skin bars, and a variety of cosmetics, fragrances, and skin care products.

If you or your significant other has bought makeup in the past 10 years, you know where this story goes. Ulta’s concept became a mega hit. From those first five stores around Chicago, Ulta has grown to over 1,200 stores across the country. It is now America’s largest beauty retailer.

Early shareholders have gone for an incredible ride. The tiny company started with a dream and $11.5 million… and it’s now worth $15 billion by market cap.

I know more about Ulta Beauty than most investors. In 2009, I was with a friend who needed to buy some makeup as we were running errands. She pulled into the parking lot, and in front of me was a large store that I had heard of but was still not overly familiar with – Ulta Beauty.

After waiting in the car for a few minutes – and getting impatient – I decided to go into the store. What I saw was game changing. The store was extremely busy. It sold everything you could imagine, and it was running like a well-oiled machine.

Of course, I decided to ask some questions… and then some more questions on the drive home. That is when I started my research into the stock and realized the incredible upside potential for Ulta Beauty.

I recommended Ulta Beauty on November 20, 2009 to subscribers of my newsletter at the time. Over the next decade, the stock exploded, gaining as much as 2,075% – more than 21 times the initial investment!

I’m not retelling the story of Ulta to brag. I’m telling it to show you the enormous wealth creating power of an innovative small business that grows large.

American business history is chock full of small businesses that grew large and handed their shareholders 20-fold, 50-fold, even 100-fold or more gains. This long list includes some of the best-known companies in the world today: Starbucks (SBUX), Google (GOOGL), Microsoft (MSFT), Netflix (NFLX), Oracle (ORCL), Under Armour (UA), Facebook (FB), Amazon (AMZN), Chipotle (CMG), Home Depot (HD), CarMax (KMX), and Tesla (TSLA).

Because the best small companies have such great potential to grow investor wealth, I believe everyone should dedicate a portion of their holdings to them.

All It Takes is One to Yield Stunning Results

I’ve mentioned Ulta before here in MoneyWire because that’s the kind of success you should strive for. Too many people “play it safe” with large-cap stocks in aging companies. But that can seriously hamper your growth.

As any venture capitalist can tell you, one is all it takes for serious gains, even if your other calls don’t work out. But with my strategy for choosing microcaps, it’s more than possible to get several of them:

This same strategy got me into Ross Stores (ROST). If you bought Ross on my recommendation, you’d have made 1,024%… plus 1,407% on Boston Beer Company (SAM), 1,495% on Advanced Micro Devices (AMD), and 2,772% on Stamps.com (STMP)!

Next Wednesday, February 5, I’ll present my Microcap Millionaire strategy to the public. Click here to RSVP, as I’ll be sharing the top sectors and industries in which to find microcaps for rare 2,500% gains or more in the years to come. This is how to maximize your profits in the “Roaring 2020s.”

My forthcoming Microcap Millionaire Portfolio will have my nine favorite microcap recommendations to own right now – and Wednesday’s event is your first step. All it takes is one click and you’re in.

Matt McCall’s MoneyLine Podcast

Click here to listen to Matt McCall’s MoneyLine podcast! This week,  Matt discusses Amazon’s (AMZN) ascent to the $1 trillion value milestone. What does its rise tell us about investing and, more importantly, how do we find the next Amazon? Matt also dives into the upside potential of microcap stocks and unveils a new portfolio aimed at the smallest stocks in the market.

You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.

Learn where Matt McCall sees
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Those on the right side of this innovation stand to build incredible wealth… just like people did from the creation of the internet and the smartphone. Think of this as your “field guide” for profiting from the next big battery breakthrough. Learn more here.


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