Every Investor Should Own at Least Some of These Stocks

It’s been more than 10 years now, but I remember the day very well.

ulta stock
Source: Shutterstock

It was 2009, and I was with a friend running errands. She needed makeup, and as we pulled into the parking lot I saw in front of me a large store that I had heard of but was not overly familiar with.

I had no interest going inside to look at makeup, so I waited in the car. And waited. And waited some more.

If you know me at all, you won’t be surprised that I got bored and impatient, so I ended up going in anyway.

And what I saw was game changing.

The store was extremely busy. It sold everything you could imagine — like a Disney World for makeup buyers — and was running like a well-oiled machine.

I needed to find out more. I asked some questions in the store … and then more questions on the drive home. That was the beginning of my research into Ulta Beauty (NASDAQ:ULTA) and the realization of its incredible upside potential.

I recommended Ulta Beauty on November 20, 2009 to my newsletter subscribers 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 telling the story of Ulta to brag. I’m telling it for a much more important reason that is especially important right now …

Ulta’s huge gains reinforce what we’ve talked about the last couple of days — the enormous wealth creating power of an innovative small business that grows large.

In 1990, Ulta’s founders opened their first five stores around Chicago. The store’s goal was simple: To 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 probably know where the story goes. Ulta’s concept became a mega hit. From those first five stores around Chicago, Ulta has grown to nearly 1,200 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 $13.5 billion (by market cap).

American business history is chock full of small businesses that grew large … and handed their shareholders 20-fold, 50-fold, even 100-fold gains or more.

This long list includes some of the best-known and most valuable companies in the world today:

  • Amazon (NASDAQ:AMZN): $1.7 trillion market cap
  • Microsoft (NASDAQ:MSFT): $1.7 trillion
  • Alphabet (NASDAQ:GOOGL): $1.1 trillion
  • Facebook (NASDAQ:FB): $766.8 billion
  • Tesla (NASDAQ:TSLA): $420 billion
  • Netflix (NASDAQ:NFLX): $241 billion
  • Home Depot (NYSE:HD): $312 billion
  • Oracle (NYSE:ORCL): $183 billion
  • Starbucks (NASDAQ:SBUX): $104 billion

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

Any venture capitalist can tell you that it only takes one big win for serious gains, even if your other investments don’t work out. But with my strategy for choosing small stocks, it’s more than possible to get several of them.

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

The right smaller stocks have the potential to hand investors the kinds of 1,000% or higher gains I’ve found 23 times since 2007.

That’s why I think they are so important to know about. I’ll present more of my small-cap strategy at our special Bull Market Confidential event on Tuesday, October 20 at 4 p.m. ETClick here to RSVP.

I’ll show you what makes these stocks so special, why they lead the market higher in almost every bull market, why they’re almost always the biggest gainers every year, and much more.

Enjoy the rest of your weekend, and I’ll talk to you then.

On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now


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