How I Find my Next $1,000,000 Stock. High Growth Investing Tutorial
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Today I will share with you one of the most valuable videos I have ever done on the Financial Education channel. This 1-hour video covers how I find my next $1,000,000 stock.
This video is very much a high growth investing tutorial. I will take you through exactly what I look for in high growth stocks and how I find that next stock that will 5x-10x my money. This is way better than any of my stock market for beginners videos or anything like that. Enjoy all!
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Holy smokes This ain’t no joke is look at this guy’s a rare video in which oh my gosh you’re looking at me I’m looking at you it’s not like a slideshow video but here today I got a real treat for you guys okay there’s definitely gonna be a video you want to make sure you watch all.
The way through because I’m giving out ridiculous amounts of value in this video here today I’m going to take you through on the whiteboard exactly how I find my next million dollar stock and I don’t want to say like the my next million dollar stock I’m not talking about the next stock.
I put a million dollars into I’m talking about the next stock I put 100,000 or $200,000 into and grows into a million dollar stock over time. Okay, so that’s what we’re talking about here today. I this is gonna be a long very in depth video probably won’t do very many cuts in this one.
I haven’t brought a bottle of water, which means this is about to be an end video. This is a serious real deal Holyfield. Okay. So if you guys enjoyed today’s video, like I said, this is how to find the next $1 million stock.
This is the type of content I usually only put out for like folks that are in my private group and things like that. So you know, the fact that I’m putting this out on youtube for free, I hope you guys really enjoy you can, you know, show me some appreciation and also help out the channel by smashing the thumbs up button.
And let me know in the comment if you enjoy you know, content like this. Ultimately, in the end, we’ll see what type of views a video like this gets data, we’ll get as many as some of the more interesting videos, but this is honestly the type of stuff that’s really a lot of money. And so anyways, hope you guys enjoy this as always, okay, so when.
I’m thinking about finding my next million dollar stock, first off, we’re talking about growth investing, okay, we’re talking about really growth investing, this is not value investing, this is not dividend investing, okay?
You’re not gonna put 100k into a value stock and it grows into a million dollars, you’re not putting 200k into a value stock or dividend stock and it grows into a million dollars unless you’re in that stock for, you know, 20 years or 30 years or something like that.
And then the company executes on a high level for 20 or 30 years is it’s pretty unrealistic, okay? If we’re talking about the type of stocks that are going to 5x our money 10x our money or more, okay, we need a growth invest, we need to find companies that can consistently grow revenues, okay, it’s very important to have to grow revenues by 10% or more, for just as far as.
I can see, okay, for years and years and years and years to go in the future. Okay, value stocks, sometimes you can find a good value stock and you can make 50% on it 100% on it in a matter of a few years.
If you get in at a very undervalued price when the stocks been down. Sometimes you can play turnaround plays, like I played a lot of turnaround plays that have made me good money in the past, he you know, just on the YouTube channel, right, elf was one that I got in last year, that was a turnaround play that has kind of started to develop into a growth stock.
And that one, we’ve been able to capture well over 100% gains on that one in less than a year, right? fizzy get dizzy. That’s another example of like a turnaround slash value play. One of my newer value plays is Cheesecake Factory.
Those are those aren’t the type of stocks that are going to 5x and 10x your money and they just aren’t there’s some potential there, there’s some potential to make a lot of money in a short amount of time, but not like 5x 10x type money. Okay, the best example of a stock that I’ve invested in last couple of years that’s obviously gotten, you know.
Huge gains would obviously be Tesla stock, okay, you know, that’s kind of the poster child of kind of this YouTube channel and kind of that type of stock where you know, we 5x plus our money in that particular one might even a 6x plus our money in a matter of about two years.
So if we’re looking for these type of stocks, where the heck do you look for him in the end, okay, so one thing I will say here on YouTube, I want to give some YouTube creators some respect, okay, some YouTube creators, you know, actually put out some some good content around some growth stocks that actually have some potential Okay, now, the thing is about YouTube.
You have to sift through a lot of content and a lot of creators and a lot of people you know, I don’t want to say it’s a bad thing but let’s be honest, a lot of people have jumped onto the YouTube bandwagon and started YouTube channels that might not even know what they’re doing in the market you know.
I’ve been in the market for over 10 years I have a successful track record I’ve been on YouTube for four years plus people can see every stock I’ve ever bought or school on this channel. There’s a lot of people have jumped on a platform because.
They’ve seen people like myself and others make really successful YouTube channels and make a lot of money from YouTube as well from all the ads that are played on these videos right? And they’ve jumped on they’re like Oh, now I can talk about stocks because I want to be you know big like Jeremy or one of these other youtubers.
I want to be the next Graham Stephan, you know, cool, right? But at the end like some of those people might be leading you down some really bad stocks. Okay. And this is where you have to know what you’re doing just because you hear about somebody buying a stock doesn’t mean you should be going out there and buying it like make.
Sure you know what you’re looking for and the stocks that’s the biggest thing and then if you don’t know what you’re looking for, you’re gambling money. Okay? There’s a reason I have this picture, not just because it’s my city, Las Vegas.
The other reason I have this picture You’re up here is to show you, you know, that’s where you go and gamble. Okay, what we’re doing here if this isn’t where you go gamble money, in my opinion, okay?
So, you know, YouTube, you can actually find some creators out there, you know, for example, you know, when I was really looking super in depth on Tesla when I was looking at it, you know, I looked at Tesla for about, you know, since the company went public.
I think was in 2010 2011, right, 2010 I think it was, and I tracked the company since then. But I started really looking super in depth into Tesla in terms of, I’m gonna actually think about putting my money in this in about 2018.
I came around crater channel, hyper change, right, Galileo, and galley man, he has some super insightful videos on this stock named Tesla, right. And between all the research I was doing in the stock, you know, brushing up on all the financial reports, the conference calls, looking at where model three production was at that particular time.
Because that was something that was ramping looking at, you know, everything I was looking at, as far as research in the company, along with watching his videos, I began to just understand this company has like, massive potential.
Like this is a potential 5x 10x plus stock over the next 510 years, I should probably start buying the stock and I started accumulating position. So there definitely are some creators out there that make some very good content that are actually very bright and know what they’re doing out there.
Okay. So, you know, YouTube’s a good place, you can look, you can look other places, like, you know, obviously, the financial networks, you know, you can, you know, go on CNBC and some of those type of places.
The issue is with those type of networks, you really have to sift through a lot of stocks. The good news is, you know, watching if you watch, you know, a 10 hour straight to CNBC, you’re gonna see and hear about a ton of different stocks, right, and they got the stock ticker thing that goes at the bottom of the screen, you can you can be like, Oh, let me look into that stock.
Oh, there’s tickers there. Let me look in that stock. Oh, they bring on this guy. He’s talking about this stock, you can, you know, go ahead and research it, you can research law stocks. Now, the thing is, you’re gonna have to do the research work.
In the end, no matter which route you go, Okay, I can tell you a place I’m getting like half my stock picks now in terms of companies to look into. And then like, oh, man, I’m actually buy the stock is actually my own private Discord.
Now, the discord I have in the private group, these people actually bring in a lot of stocks. If you think I’m the only successful investor, you’re hardly money, you know, you’re making a big mistake.
I know, there are people in the private group now that are getting even better gains than I’m getting, I think fidelity has calculated a 70 something percent ROI in the past one year on the public count. And we have people that are beating my returns.
And there’s some very high level thinkers, I’m getting about, you know, literally half my stock picks now for my own discord chat. Now, obviously, some of you guys won’t have access to that. And you know,
It is what it is, you know, Seeking Alpha, Seeking Alpha is fairly decent in terms of getting some different stock ideas out there, some, some are going to be garbage, some are going to be good. But no matter which route, you go in terms of growth stocks, and we’ll talk about what to look for in some of these stocks, no matter which route you go.
You can just buy blindly, you can just like read an article that somebody wrote and be like, I’m buying the stock. You can’t just hear somebody go on CNBC and say, Oh, yeah, this stocks, you know, some analysts on Wall Street from JP Morgan say, well, this stock is $45 today, and we think it’s going to $60 over the next year.
And it gives us like, oh, let me get in my account. Baba, Baba, let me buy this stock. It doesn’t work like that, man, you are gambling money. If you don’t know what you’re doing, you are gambling money, you have to like come to grips with that. Right now. It is super, super important.
Some people get lucky. And they buy a stock off a recommendation, whether it be off one of my videos, or somebody else’s videos, or one of these, you know, and they get lucky. That’s pure luck. You just gambled money out there, and you got lucky, you’ve got to really know what you’re doing in this, you can’t just you know, long term, it’s not a viable option.
It’s not going to work out for you long term. If you’re gambling money around. It’s just facts. Okay? So these are some of the places you can look for stocks in other places in that but just there, you can get so many ideas.
You know, you could even like Google s&p 500 companies, and go through the entire s&p 500. And look at what companies have growth you can go to, you know, something like Yahoo Finance, go to the analysts tab, and you’re actually going to get to see you know, what the company has grown revenues by in the past and what analysts expect the company to grow revenues in the future.
And then you can start researching from there. Oh, this company has 25% revenue growth and als expect them to grow 35% next year, let me look into the company a little deeper, go the investor relations page of that company, start doing some research work there. Okay.
So there are definitely plenty plenty, plenty of ways out there that you can come across stocks, there’s no shortage of how to find stocks out there. It’s one of the silliest questions I get sometimes people are like, Jeremy, how do you you know, continue to find stocks to look into and whatnot.
I’m like, Dude, it’s not hard. Like there’s a million stocks being mentioned all over the place. It’s just up for you to actually you know, pay attention and look at the stock and be like, Okay, let me do a little bit of research.
Do I see something I like there? No, okay, then, you know, the research ends. So, let’s continue on here, essentially. So let’s Say we find, you know, our growth stocks. So we find something that seems really interesting to us and we start researching.
Okay, so you might have heard of stock mentioned on the YouTube channel, on, you know, CNBC or wherever it is. Okay, so you hear about this stock XYZ, and you’re looking at it, and you’re like, Hmm, this looks pretty dang interesting.
So what I like to start with is the business first, okay? Do not worry about this. This is such a cardinal sin of stock market investing my opinion, people worry about financials, statistics, metrics, before they worry about the business, I can always tell a lost investor, when they bring me a stock.
And they start out with telling me the trailing 12 month PE and the price to sales ratio, and intrinsic value and blah, blah, blah. And they haven’t even talked about the business yet. That’s a lost investor, okay.
You always, always, if you really want to make a lot of money in the stock market over time, you better always start with the business first, okay. Guess what any Great Investor business person will ever tell you is the most important thing. It’s not some magical metric.
It’s not some financial statement. Okay. All that stuff’s important. But always the most important thing is the business first, okay. So you need to understand that business on the highest level possible.
You need to understand that business in a way an executive would, for instance, okay, and the only way you’re going to be able to get to that level where you understand the business on such a high level.
The only way, okay, and be very clear about that, is by doing the research work, you must read the 10k annual report, you must read the latest 10 Q, you must listen to the latest conference call. not once, but twice.
Okay. Always listen to conference calls twice. I’ve been in this game for over 10 years now. I always listen to conference calls of companies I really care about twice, okay, or company I’m going to buy. Why?
Because a conference call is 30 minutes to 60 minutes long, usually, okay, usually minimum 30 minutes, usually, you know, upwards of 60 minutes, right? There’s a good probability that something happened in that 60 minutes that all of a sudden you stopped paying attention to what was going on their conference call, right?
All of a sudden, you know, your kid walks by and you’re like, oh, man, you know, all sudden, you start playing with your kid and you got the conference call. But are you really paying that close attention to what’s going on?
All sudden, your friend comes in the room or, or your dad or or you know, family member, a friend or somebody and they say something to you? And you’re like, Oh, yeah, oh, yeah, we’ll eat dinner this and this time, okay, now you just lost concentration on what’s going on there, man.
Like, this is why you have to listen to it twice. Not only that, and not only is it like distractions from other people, or pets, or whatever that can, you know, kind of take your mind off things. But also, you can hear something on a conference call this happens to me all the time.
This is you know, the biggest thing that happened to me while I was listening to conference calls, at least twice, is there’ll be something mentioned in that conference, call it all of a sudden, unlike my mind starts going Boom, boom, boom, boom, boom, over here.
And I start getting a fix, you know, like fixated on whatever I just heard. And my mind’s over here. And I’m like, Oh, my gosh, yeah, that’s a big, big business opportunity. And also, I’m starting to think about that.
I’m starting to add up numbers, Oh, my gosh, they expand over here, who they competitor over there, oh, they’re trying to do this. And also, there’s Meanwhile, the conference calls still going on, in my mind, you know, 10 miles over this way now.
And so whatever is going on the IRS, it’s not i’m not even listening to it anymore, because my mind so far over there. And also, I finally finish that thought, after a minute, a few minutes go by, and then I’m back on the conference call again.
But meanwhile, three, five minutes of the conference call, I just missed that. Something very important could have happened in that three or five minutes on the conference call, okay. Something very, very important.
So, you know, this is vital stuff, guys, you have to listen to it twice. Okay. Something else on Investor Relations page of a lot of great companies is what’s called an investor presentation. We’ll call it an IP.
Let me see if my camera’s gonna stop. Oh, no, we’re only 14 minutes into this. We’re looking good. Okay. Investor presentation. So not all companies have investor presentations on their, you know, Investor Relations page. But some companies do and can tell you these investor presentations, or incredibly helpful, okay, absolutely, incredibly helpful.
These can, you know, between all of this, between going all in all of this, right? You read a full 10k. And when, by the way with the 10k. Make sure you’re not blind reading. What I mean by blind reading is, you’re going through the pages, but you’re not retaining any knowledge because once again, your mind goes somewhere else.
This is something that happens to me is something that happens to a lot of folks. We’re also in your mind starts going somewhere else. If you’re start blind reading that annual report, stop, take a break, go do something, come back, start reading again.
And if your mind wanders off again, take a break. Like if it takes you a week to go through 10k that’s fine, man. That is perfectly fine. Okay, you know, I can go through a 10k in about three to five hours roughly.
But that’s if my mind’s fully there, and I’m ready to rock and roll. Okay. 10k 10 q conference call twice and investor presentation, you should be at a place where you understand this company on a very high level.
And if it’s a growth company, that could be your next million dollar stock, right? You should be able to, after you’ve gone through all this have a very high level of understanding. If you don’t, it’s probably not in what’s called your circle of competence.
Okay, this is something warranted, it’s something I learned from Warren Buffett, your circle of competence, okay, we’ll just call the circle, meaning essentially, not all businesses, you’re going to understand, okay, there’s going to be definitely a good amount of businesses in here that you’re going to understand a very high level.
You’re just going to get it, you’re going to understand why this company is going to grow so much in the future. But unfortunately, there’s going to be some that are kind of in that gray area where you like, almost almost get it budget aren’t quite there.
And they’re going to be some companies and some sectors and some industries, that you just don’t know, you’re just completely lost on it. And they’re way out there. And you’re like, man, there might be something there.
But honestly, I just don’t know what these growth rates are. I don’t I can’t really like I don’t understand why this company has a competitive advantage against this company over here. And that’s fine. Okay.
There’s no shame in that game. There’s no shame in that game. There are companies I look into an industries I look into, that aren’t in my circle of competence. And I’ve been in this for over a decade now. I run a successful business like I know business.
I know these companies. And I’m not ashamed to say there are a lot of companies out there that I don’t fully get k. In Warren Buffett will tell you the same thing guys worth you know, if he hasn’t given away so much money.
He would be worth well over $100 billion, right? This is very, very important. There’s no business man I know about there that understands all businesses on a super high level, it just doesn’t exist.
So if you’ve gone through all that, and you just don’t get it, I don’t care how much you know, somebody says they love that stock and how much upside don’t buy that stock is not worth it. You know, the pharmaceutical industry is a good example of just an industry I don’t have, you know, enough knowledge on.
I just don’t quite, I can’t quite wrap my head around those type of stocks to understand why this this pharmaceutical company is gonna be the next giant or something like that, right? Same thing with stocks like Nvidia, AMD, right, Nvidia and AMD, these types of stocks have gone up tremendously over the past four or five years, and.
I’ve looked into these companies and in videos for a little bit, but honestly, Nvidia I really shouldn’t even have been in even though I did make money, and I was fortunate. I was kind of like over there with Nvidia.
It really wasn’t in the circle, but it wasn’t outside, I was like, I’m almost there. But it’s just couldn’t quite wrap my head around the opportunity there. AMD this stock I look into one was like two bucks, AMD is in the 50s now, but my head just couldn’t quite wrap around.
I was like, I think there’s something there. But Gosh, I just I just don’t really know, I just don’t really know, I can’t quite wrap my head around. And I looked into again, and I was like, dang, I just don’t know.
I just don’t know, you know, how this company is going to grow, you know, X amount over the coming years. And there’s no shame in that. The great thing with the stock market is there are 1000s and 1000s of stocks to pick from out there 1000s of stocks to invest in, okay.
Which means essentially, if you don’t understand this stock and this stock, you still got 1000s and 1000s and 1000s of stocks to go through, which means for you, this is a massive advantage. Because.
I can guarantee you, when you’re looking at as companies, you’re going to find some sectors, some industries that you understand on a very high level, and you’re going to be in that circle of competence.
And you can find that, okay, now. So now we know kind of, you know, kind of research frameworks here. And those sorts of things very, very important to understand this. And, by the way, if you’re somebody that’s watching this video right now, and you’re looking to scale your portfolio, okay, you’re you’re looking to, you know, grow your portfolio from let’s say, you got 10,000 or 20,000.
Or 30,000, you’re looking to grow it to 100,000 Plus, or you’re somebody with, you know, 100k in the market or something like that, and you’re looking to grow it to seven figures, check out the first link in the description down there.
And go ahead and get on a call. If you’re approved, you’ll be able to actually get on a call with somebody high up from my team. And we can actually talk to you about how to scale your account, we actually have some products out there that can actually help you do that.
Okay. Now, next thing we’re looking at when we’re thinking about a growth stock, is we have to be going after a fairly big market opportunity. Okay, let’s call it market off, okay, market are very, very important.
If you’re thinking about a growth stock, okay, this type of stock is going to 5x 10x. If you’re getting in that type of stock that you think is going to grow massively. You usually don’t want a company that’s going after a niche, okay, a niche industry or something like that doesn’t mean it can’t work.
It’s just not as likely to work you’re you really need a company that’s going after big things. A big growing industry, okay. an industry that’s Growing, okay, we don’t want to get into a sector that is in decline, we want to get into a sector that is growing. Okay, this is very important.
And we would love to get the number one player in that growing sector, okay, if we can get the number one player in this space, we’re talking about, okay, now now now we’re talking about, okay, this is so these are some of the things I’m looking at, if I’m gonna find that next million dollar stock market opportunities.
Because think about this way, okay, let’s go through something like, you know, Tesla, right, since Tesla’s a stock that’s obviously, you know, we’ve been able to 5x 6x or money and, you know, just matter of two years, and that stopped, right, and let’s, let’s kind of run through some of this.
And by the way, you know, I didn’t expect the stock to have gone up as much as it did. But sometimes that happens with growth stocks, they go up even faster than you thought, Okay. But when you think about something like Tesla, it’s going after a massive market opportunity, right?
In terms of their main product, right? automobiles, like massive category, just massive category, right? They’re in a growing sector in terms of electric vehicles, right? electric vehicles, some of us obviously feel like this is going to be the future.
And all cars in the future will be electric vehicles, right? So they’re going after a massive growing sector, right? The number one player in electric vehicles, so as long as they continue to innovate, and as long as they continue to, you know, keep their lean, they’re going to stay out in front of everybody.
And guess what, they’re going to just capture massive market. And that’s why a company like this, you know, Ilan Musk has gone on record saying, you know, he expects that company grow revenues. 50% Plus, you know, outside of a recessionary year, really bad year, something like, obviously, it’s going on this year to Rona, he’s talking about 50% plus revenues.
For as far as I can see, how do you get to that place? Like how can you How can you already have a big business, like Tesla has 10s of billions of dollars of revenue, and expect your business growth, you know.
40 50% plus a year for as far out as I can see, as long as it’s not in a recessionary year? How, because you’re going after a massive market opportunity, and a huge growing sector, and you’re the number one player, and as long as you can just keep it going, and you keep the compounding growing?
Oh my gosh, listen, you have this massive, massive company on your hands. Okay? If we look at a stock that I’ve identified recently, okay, now, I’m trying to talk about this stock too much now, because it keeps pushing up the price every time I mentioned this one, but it’s what I think will be my next million dollar stock.
It’s a stock called, you know, plant 13. Some of you guys might know about it, if you track the channel. This is a stock I started buying when I think it was like $1.20, or dollar 40 or something like that. Very small company, OTC, smaller company than I usually buy.
When I looked at this company, I said, Okay, this is a stock that’s going after a massive market opportunity that’s growing huge, right? There’s a huge growing sector, right MJ space, like, you know, if you know, what plant 13 does, they sell MJ, they have superstores, they have different products out there that are MJ related, right.
This is something that’s just started to get legalized on a state by state level very recently, right. In Canada as well, things have been legalized over time in the United States, I think federal legalization is coming to the MJ market over time.
So we’re talking about, you know, the MJ market on the illegal market has been massive for longest time, it’s probably going to be even bigger, actually lot bigger, when things are legalized, right? growing sector number one player when it comes to their superstore experience, as well as potentially number one player with their consumer brands over time.
And so I’m looking at this stock, and I’m like, Hmm, this might have a little opportunity to end up being the type of stock that ends up, you know, 5x in there 10x in our money over the next five or 10 years.
This this is so this is so big, when you’re thinking about growth stocks, guys, you have to really have these three. And you know, if you’re looking into growth stocks, in the future, run a checklist with these three things, okay, you need to have all the other things I look for in stocks.
I teach to my private group and things like that, but these three things specifically, or massive, okay, these three things are really big. Okay, now, let’s get into a fourth thing that’s really big here, which is the CEO, okay.
You know, if we were to just, you know, bypass this one, and say this is an important, it is extremely important. Great CEOs can 5x 10x 20x or stock prices over time, I’ve seen it time and time again, from great CEOs that end up accomplishing things like this. CEOs that are so like, like steadfast in the business.
That they just they just understand the business on a high level and they just keep pushing, push and push and they’re going after these type of things. Okay. You know, I mean, obviously, some some names that will come to mind will be Steve Jobs, right?
Steve Jobs with Apple. Somebody just understood, like how to continue to grow the business. Focus on big market opportunities in a growing sector, right. This is something Apple’s always done phenomenally, always make sure we’re like the number one player there. You know, very important and when we think about number one player.
We’re talking about Apple always likes to compete at the high end. So it doesn’t mean you have to To be number one player overall but in your specific you know when you think about let’s say the smartphone market right massive market ton of competitors in Apple’s a number one player.
On the high end and the high end because smartphones such a big a massive market like almost everybody in the world has a smartphone right? This isn’t a niche market this is still a massive market opportunity even though you’re up here competing.
That’s something to keep in mind. You’re not really niching down if you’re if everybody in the world needs something like that, keeping that in mind. Okay guys, so you think about Steve Jobs you think about Mark Zuckerberg obviously you know that stock went public at you know $38 back in I think it was 2012 or so that’s a stock that here today.
Is you know roughly 250 or so let’s say somewhere around there and at its lows after when public actually went all the way down to under $20 a share you think about somebody like Ilan musk right. Ilan Musk has done a phenomenal job growing Tesla over time testicles public.
I think that stock was I want to say it was under like $20 a share, right? Tesla, you know, here today is like $1,500 or whatever like it’s, you know, massively value compared to when I went public at like $20 a share. You know, those are some of the big names obviously.
You could think about somebody like Bill Gates, you know, the growth Microsoft had you Oh, my gosh, back in the day, especially, I mean, Microsoft’s got back to good growth, right? If they hadn’t phenomenal growth in the Bill Gates days.
And hand the business over to Steve Ballmer and Steve Ballmer never really was able to get that massive growth going really for the company. Again, unfortunately, until it was held. The company was kind of passed on to Satya Nadella and Satya Nadella was actually able to grow that business to be a much, much bigger business over time.
So you know, you know, CEOs really, really important, right? You think about Jeff Bezos, right? somebody that’s been able to grow Amazon from just a teeny tiny company, when they went public to now think they have the second biggest valuation in the world, something like $1.6 trillion, right?
Great CEOs can make all the difference in the world. And what all these great CEOs have in mind, they all go after huge market opportunities. They all go after massive growing sectors, they’ll go after, you know, being the number one player in that market trying to be that number one player, and they all have phenomenal CEO, okay, let me tell you about a stock I was involved with.
Back in the day, I don’t own the stock anymore made me a lot of money. And, you know, if I would have started investing even younger would have made me a lot more money. This is one of the best performing stocks from about 2002 to about 2021 of the top performing stocks out there in the stock market.
This stock didn’t just 5x 10x this stock went up 10s of 1000s of percent from 2002 until 2020 10s of 1000s of percent okay, this company is known as monster beverage Corporation today, okay. But back in the day, they used to be called Hanson’s natural Okay, I don’t even know where to write anymore at this point in time.
Okay. This company used to be known as Hanson’s natural beverage. It was like a small apple juice related company they made like apple juice and some different juices out there and things like that super small market cap. Just kind of a joke of a business, okay.
And the gentlemen that actually took over the business, the CEO and co CEO that I’ve taken over the business, they understood there was this massive growing category, where because it was a company that was growing like crazy.
And it was Red Bull, this company was called Red Bull. And they were under this new wave, which was called energy drinks, okay, energy drinks, believe it or not, or something that’s really gotten popular over the past 20 years.
You know, prior to that there wasn’t really like an energy drink category. Okay, so these gentlemen saw this, and they saw this company Red Bull growing like crazy. And they were going into this huge market opportunity in a massive growing sector, right?
I mean, you think about market opportunity. It’s drinks, right? massive market opportunity. Everybody needs to drink something. This is you’re going after a huge category, you’re in a huge growing sector, which was energy drinks, right?
And this company was the number one player in this company named monster. They said what if we go after this massive market opportunity as well? What if we grow go after a growing sector number one player, okay.
And what this company ended up launching was ended up being what’s called monster Okay, they ended up on stage launching a product called Monster Energy. Okay, Monster Energy. And this ended up growing into a company that went from being, you know, maybe a $60 million market cap to 30 plus billion dollars, just incredible.
They launched this product in 2002. And they focus on kind of, you know, putting the products and events and things like that. They watched what Coca Cola did with their product, obviously, you know, Coca Cola, obviously being you know, a soda maker out there, and they looked at this and so if you were looking at the stock, you know.
Let’s say in 2003 2004, you’re going to saw oh my gosh, this company that’s that’s a you know, a juice maker historically is coming out with this product is getting more and more popular. It’s getting into more and more stores is in his mouth.
So growing sector that’s probably going to grow for years and years and years to come. And oh my gosh, this company might ended up becoming the number one player over time, they’re already kind of emerging as the number two player, right.
And you’ll see a CEO and co CEO making a move like this, you know, the bells start going off in your head kind of starting to realize, Oh, my gosh, this might be a massive opportunity stock, and look at how small it is today.
And think about where this company is gonna be 10 years or 20 years from now, as this category continues to grow. And if this is the number one or number two biggest player in this market, that you know, because you can just start thinking about and you think, well, Coke and Pepsi.
And you thought about the competitive landscape and this word, if we come to the competitive side, okay? This is why I want to bring up this one, you think about competition, because competition is important if you want to achieve big things.
And if you were looking at his company back then you could have saw the Coca Cola was non existent in this market, and Pepsi were not exist in this market. And these are the two biggest threat companies, if you’re thinking about if you’re looking into this company in 2004, right, ie 2002.
They launch a product, you’ll start looking in 2004, you’re like, Oh my gosh, this company is growing like crazy. You’re doing your research on it, right? And you’re like, oh, what are the What about the competition, you’re looking at this company, Red Bull that competition.
But the two biggest threats to you at that time, our Coca Cola, and Pepsi by far, and they just weren’t even threats. They were just kind of like I don’t really asleep at the wheel, essentially, you know, Coke and Pepsi could have had Coke and Pepsi could have been Red Bull and monster.
And they just missed that opportunity. Because Coke and Pepsi. Were looking at it as this just a small business over here, we got this massive soda business, and we keep buying out other companies. And that’s just some energy business over there, whatever, okay, and they kind of brushed off to the side. And you kind of saw Oh, my gosh, man, we got like a free run at this, right?
And this goes back to Tesla, right? Remember, we were talking about tests earlier, something I looked at when I looked at that stock from a growth perspective is Oh, my gosh, competition, non existent. GM, and Ford, and Volkswagen,
All these other companies, Toyota, Honda, they could have taken out this company a long time ago. But they were like, Oh, that’s just some niche thing over there. And it wasn’t until the past year or two, they started taking a serious, dude, that’s way too late, like you needed to be on this stuff 10 years ago, if you really wanted to succeed.
And then when Coke and Pepsi tried to come in this space, many, many, many, many, many years later started taking a serious wish they didn’t start taking a serious toll like past like 2015. They couldn’t have success in this market.
Because everybody was already used to drinking if they want an energy drink product, they were used to drinking Red Bull, they were used to drinking monster, and their Coke and Pepsi were like, We just missed a massive market opportunity because we brushed off to the side.
And what ended up happening Coca Cola ends up buying a massive stake in monster beverage, because that was the only way they could succeed in this market. Let’s just get a big ownership part. They bought like 20% or so of Monster Energy.
Isn’t that funny how it worked in the end, right. And that’s something I identify with Tesla. The competition not exist in here with this company. There’s just not realistic competition. Everybody should have been focused on the stuff 10 years ago, you don’t focus on what’s already in your face.
It’s too flippin late at that point. They’ve already you know, this company’s already been branded electric vehicles, autonomous driving, things like that, if you’re just gonna start focusing r&d efforts on now, doesn’t matter if you invest $10 billion in the space for 20 billion doesn’t mean anything to you.
And then because you’ve already lost, it’s too You’re too far behind the eight ball now, right? You think about? Obviously, imagine you look into Apple, right around the time they launch iPhone, okay, let’s say 2007 2008. Now, Apple stock had already came back a lot at this point. Okay.
Apple stock had already come back tremendously at this point, when you think about this, Apple stock was a stock that was almost bankrupt. I mean, this stock was literally almost bankrupt back around 2000. Let me see, no, it would have been right around 9798.
This was a company that some folks thought Apple was going out of business, right. And then I believe was 1998. Apple got an investment from Microsoft, right? That ended up helping Apple save the business.
And it actually that investment made Microsoft billions and billions of dollars as well, right. But let’s imagine you don’t even look into it back then. Because the company was almost bankrupt in you know, to get in at that time, you would have had to be super brave and super confident and risk taking a lot of risks, right?
Apple in 2007 2008 was not nearly as risky, as risky. If I recall, the company was well profitable from their iPad and from their iPod business, right? As well as their iTunes business as well as they had rejuvenated their computer business.
You know, Apple was on the up and up. They were a growing company. It was looking bright. Okay, then they come out with this iPhone product, right in 2007 2008. And this is a product that you know, if you really were observing at that time, this was a game changer.
This was a game changer in the market. Okay. So imagine you look at what was out there in the competitive landscape, right? Yeah. And you think about it, if you’re looking at Apple as an investment that time thinking about this as a growth stock, right?
Wow, this company’s going out. For a massive market opportunity, right? Everyone’s probably gonna have smartphones in the future, right? Once people experience this product, they’re probably not going back to flip phones, right?
And if you would have made that observation, obviously, you’ll be successful. But it’s like once you experience something so much better, you don’t go back to old thing, right? It’s like, once you drove a car, you don’t go back to like, let me have horses again or something like that. Right?
Once you experience electric vehicle, you don’t go back to ice vehicles. Once you experience an iPhone or a smartphone in general, high end smartphone, you don’t go back to flip phones. It just doesn’t work that way. Right?
So you look and you say this company is going after a massive market opportunity. This company is going after a growing sector, which is huge smartphones, right? phones in general, right? This company is on the aisle, as soon as like 2900 was clear, they were the number one player in smartphone category, right?
They have a CEO who was clearly growing the business, he grew the business in the past, right, left the business and fell apart came back to the business on the right track. And the competition was non existent.
If you looked at all the other players what they were doing in 2007 2008 2009 2010 2011, there was no real competition. Apple didn’t get in any real competition really, until I think it was 2012 to 2013.
When Samsung started compete with them, they actually made some bigger smartphones, and some customers jumped ship or, or you know, experienced Samsung for the first time or something like that, right?
So you think about that time period, Apple was just running by themselves, man, they were just running by themselves for years and years. And so Apple got to leapfrog everybody, they got to get that iPhone experience in everybody’s hands.
And everybody ended up you know, loving the product, loving the software, the software’s what really made the iPhone in the end, and what continues to make the products to this day. It’s not the hardware experience.
Everybody’s got a good camera on their phone, right? Everybody’s got a six inch screen or whatever, right? Everybody’s got a nice screen. Everybody’s got speakers. It’s the software experience. And they got everybody used to that software, loving that software.
And they were in the clear, and they were set for the next 20 plus years, right. And they’re still set to this day. And they became the biggest company in the world, the most profitable company in the world, right?
All on the back of the fact that other companies just were not taking the competition’s serious enough, right? blackberry was trying to you know, compete in a different way. And it was like a Blackberry, you’re, you’re you’re behind the ball, right?
Nokia was just not even a threat, Nokia was still so focused on selling flip phones, because that was what made Nokia successful, right? And you’d look at that, and I was like, You guys just missed a massive opportunity. Right?
You look what Bill Gates did with Microsoft, right? a company that you could have made 10s of 1000s of percent of gains over time, if you invest in that back when anytime, you know, went public or whatnot, right?
You know, there were plenty of big tech companies at that time. There were just different types of tech companies that could have easily emulated and did something Microsoft did Microsoft just the competition just was asleep at the wheel.
And this is what happens. The big companies fall asleep. The little guy comes up steals market share grows, grows grows bigger and bigger. They’re going after if they’re going after this man, it’s massive. Okay, you know, same thing you know, happened with obviously, you know, the FB overtime.
You look what, you know, Jeff Bezos has done with Amazon. Where is Walmart been? Walmart’s just started taking ecommerce series in the past. Like, I feel like the past two years, I’ve tracked Walmart forever used to be an investor the stock back in the day made, you know, little bit of money on the stock. But at the end of the day, Walmart, they do, they should own Amazon.
They should have owned Amazon. But Walmart was so caught up in paying attention to expanding retail stores. Rather than watching what Amazon was doing and being like, let’s emulate this man, let’s start taking online super serious.
And this is why Amazon has beat Walmart and will continue to beat Walmart in the future because Walmart lagged as a Walmart went from being the premier biggest retailer in the world to now they will always be number two behind Amazon because it’s just it’s too late at this point to try to even think you’re going to be number 110 years ago, 15 years ago,
If they were taking this serious, dude, they would have had this market, Amazon wouldn’t even have been a big thing at all. Amazon would have been fine for number two. And Walmart just missed that opportunity.
So this is something that consistently happens with growth stocks. Okay. So now we understand kind of the markets that you’re going after and things like that. Okay, now, we got to talk about the next big important thing, which is valuations because, as you know.
Financials are important, obviously, you know, the most important thing is, you know, what type of opportunities have the company going after, what are the business fundamentals. But also when it comes to these growing companies, people ask about valuations, because sometimes some of the stocks a lot of these stocks, right.
If it has phenomenal growth, it might be trading at a rich valuation, right. I mean, we see some of the stocks out there, especially right now, right in this market that we’re in right now. It starts to train up very rich valuations.
And when you think about this, the valuation sometimes don’t seem right. It seems preposterous. It seems ridiculous sometimes. Right. So we it’s just a discussion we have to have on a very high Love, vow you a Sean’s, by the way, if you’re newer to the stock market.
I actually don’t suggest you invest in growth stocks. I think they’re too too dangerous for most newer investors. Once again, you you’re free to gamble your money if you want to just stick money in something you don’t really know what you’re doing.
But I can tell you from my standpoint, I was in the market for about five years before I even thought about like investing in growth stocks. Why? Because of this right here valuations see a value stock, you can look at things like a Ford p, right.
And you can say, well, it’s under, it’s at a 14 four p that looks pretty fair, because the market in general is trading at a 24 p as companies like they’re gonna grow revenues 3% next year, and they grew revenues 4% next last year.
And so this is a solid you can it’s so much easier to value profitable companies, especially immensely, you know, profitable companies, companies with long track records of profitability. And companies with low growth, it’s so much easier to value them.
What happens when all of a sudden you have to value a company that’s trading at a 6000, forward p Okay. What happens when this when you get this put in your face a 6004 p 14 price to sales ratio. Okay?
When you do now, it because if you just looking at those numbers, you will never ever touch that stock, I can promise you. And the problem we get into when it comes to grow stocks, as many of these growth stocks trade at 100 plus forward P which by the way, the Ford P is the most important metric to me in the stock market, at least when it comes to value stocks, dividend stocks.
A little bit of growth stocks, but not that important. And so we’re the reason I couldn’t get in row stocks for the longest time was because I was trained as an investor. Right? Let me look at time here how we’re doing 16 we’re doing good. Okay.
So when I was when I, you know, came up in the game, essentially, I learned from Warren Buffett and I learned about valuations and I learned kind of what a fair you know p was and things like that. And then all sudden you’re hit with this and you’re facing like a no I’m not touching any growth stock ever because they all look disgustingly over valued.
Okay, overvalued. It’s the famous term that is clean to all great growth stocks out there. It’s overvalued man, you hear it consistently, you know, obviously stocks, zoom stocks like Shopify right now.
I feel like are the quintessential type stocks where people are talking about overvalued bubble stocks, right? Obviously, Tesla gets in that same category. A lot of folks say that stocks a bubble, you know, whoever’s right. In the end, we’ll see whoever’s right in the end there.
I’m not there to debate that. But the fact is, those hit a lot of people because they look at it, and they say Shopify is trading at a 10,004 P, that sounds ridiculous, because the market trades at a 24 P or an 18, or 23, depending on the time and things like that, right.
And the market in general trades at price to sales ratios of 1.4 or something like that, right. And this one trades at a 14 or I think I saw zoom recently was trading a price to sales ratio, which is you know, price of stock versus revenues of.
I want to say it was in the 70s or 80s or something like that. It was it was, you know, insanely high. That’s not the way you value growth stocks. Okay, let me be very clear about this. You kind of can’t even look at this stuff.
And this is why it is frustrating for even somebody like myself, that’s a value in you know, that was trained to be a value investor, because that stuff is not how you value a growth stock. Okay, it is not okay.
How do you really value a growth stock? is you really need to think in terms of what is what is the potential market cap size for this company over time. Okay. What is the potential market cap size for this company over time?
You need to think about five years out revenues, okay. Anything about five year out revenues, you need to think about five years out, net income, okay? And this is where it’s so different from dividend investing.
Value Investing is why it’s so much more, it’s so much harder for me to teach growth investing. And I’ve had to really think about this in the past like how do I teach somebody to value growth stocks and those sorts of things because value investing?
I don’t have a it’s actually pretty easy for me to teach somebody you know about look for this and dividend stocks, look for this and value stocks. But how do you teach somebody that a 6004 P is actually a deal on stock?
Because it sounds stupid, right? It sounds completely stupid. But the trick is, you have to really, this is where we go back to a member of the star this video we talked about the research work, reading the 10 case, the 10, Q’s investor presentations, conference calls, looking into that industry on a very high level.
All those things are paramount regardless of any stock you buy, but specifically growth investing, okay? Because you dude, you’re never going to be able to figure out a potential market capitalization for this company. Five, your revenue five years.
Net income, if you can’t like quantify how big the business can be in the future, right? So the way I do it with some stocks, I’ll give you two examples. We talked about Tesla, and we talked about, obviously, my newer one plant 13.
So when I’ve been in for a couple of years one, that’s a newer one for me, right? A 2020 value, right? So let me think about how I figure something like that. Okay, so with something like Tesla, what I did an exercise I did for that particular stock, is I started to run numbers as far as like, well, what did I think he V’s would grow to each year?
Okay, where do I think Evie growth would be cheer? How big do i think you know, winter? What I think Evie is would hit like 5%. When did I think Evie, as a percent of total cars would be 10%? Right?
I looked at the total amount of auto sold. Okay, so total auto sold. And I said, Okay, there’s 17 million cars a year sold in United States. And there’s 15 million roughly sold in Europe. And there’s 21 million sold in China.
I started running all these numbers and start going down the list. And I said, Well, this how many Tesla produced this year, right? And that was back in 2018. So I was really I think I was looking at 2017 numbers at that particular time.
And I said, well, we’re probably gonna start moving this many model threes in the future. And if you look at some of my old like Tesla breakdown videos, when I would like to say, you know, Tesla stocks going to $3,000 in the future and whatnot, right?
If you look at some of those old videos, that essentially what I’m doing, as far as exercises go, is I’m breaking down the percentages, and how many autos is Tesla gonna likely sell from model three?
And what about an affordable SUV they’ve come out with in the future, which obviously, now we know is model y, right? And what if they come out with a pickup truck in the future, how many cars they likely move in that market?
And what type of market share did I think this company could have over time? That’s a really big thing, the market share. And so I started running these numbers, I said, Well, if they have 25%, market share, and I feel like they’ll have at least 25% market share, because I understand the business on the high level, understand how bad the competitive landscape is.
Understand the type of market share somebody like Apple commands in the United States and around developed world. And I kind of look at them as kind of a benchmark to where Tesla’s going in their sector, as far as electric vehicles in the future, right?
And I start reading all this and I’m like, Okay, if they get a 25% market share, it’s this number, right. And if they get a 50% market share in the future, then it’s this number, okay. And I start reading numbers, and I understand the auto industry in a very high level.
Because I’ve done a lot of study on okay. And so I look at something like this, and I’m like, okay, 17 million autos a year sold. Now, numbers probably gonna go down the future because of ride sharing, autonomous vehicles, things like that.
So maybe the number in the future, maybe 10 years from now, it’s not gonna be 17 million cars sold a year, maybe it’s 12 million cars a year sold in the United States. Okay. And that’s in 10 years from now. Okay. Now, if that’s the case, right, and Tesla has a 25% market share, they’re moving 3 million cars a year, right?
If they have a 50% market share, which I think is very much possibility, as long as they keep their lead up, and they keep you know, moving at the pace of Tesla moves out, which is far faster than anybody else they compete with, right?
So long as they continue to have that innovation, they should be doing 6 million just in the United States of America, okay, just in the good old USA. Now, what about Europe? Now, what about China? Now, what about the rest of the world, right.
And so you start running some of these numbers. And I’m like, this is just one facet of Tesla’s business. And then there’s the autonomous vehicle opportunity, then there’s in app purchases that you can make on tassels, right.
And I start running all the numbers on this. And it’s just the numbers get so crazy, that it’s like, at a 30 billion or $40 billion market cap, whatever I was buying the stock at. It was it was the deal a century.
If you looked at any metrics on it, if you looked at price to sales ratio, if you looked at things like this is where people get really confused with this one, they were looking at what is Tesla’s market cap versus General Motors.
Because General Motors sold this many cars last year, and Tesla sold this many, so General Motors deserves is a very, very scary word to use in the stock market, when you’re saying this stock does deserve something.
Nothing deserves anything in the economy, especially in the stock market. When people would be like, GM deserves a bigger market cap than Tesla. Tesla doesn’t deserve this market cap. It’s like Dude, look at the future numbers.
Look at what they’re going to possibly be putting up in the future. This is where we’re valuing the stock off of you evaluate off of what they’re doing today, if you want, obviously, it doesn’t make sense, right? Because this company is the future, and they have this massive competitive lead.
They’re going to probably continue to expand because these other guys just don’t move as fast as this company. Now the company is moving so much faster. Anybody else right? And so this is where you start tossing value of stock and you start to figure out, this is a company that will likely have market capitalization of hundreds of belly billions of dollars.
510 years out, if not a trillion dollars someday, right? And so that’s when I start running these numbers and I start realizing this stocks is a steal. I’m stealing money. I’m stealing money from the stock wall she’s so caught up in what numbers are the hidden this quarter.
And I’m worried about what numbers are hidden five years from now, we’re playing two different games and Wall Street’s playing checkers over here and I’m playing chess, it’s a different game. So something to keep in mind most of these Wall Street analysts, they they don’t have any track record of successful stock picking or anything like that.
They don’t know how to really value a growth stock. They most these analysts didn’t even have a clue on how to value Tesla, a company that was likely going to grow revenues 50% a year for you know, as long as I can see, there used to value in Ford,
Which is a company that’s pretty much stagnated. Right. And by the way, this Roni situation has messed up the autos worse than ever. And that’s something I’ve predicted as well, in past what I’ve done videos in the past, many, many years ago, as to the back when we were living in the three bedroom apartment back in the day.
I do videos talking about the next time we had a major recession, the auto industry was gonna get absolutely wrecked in that whole situation. Guess what, we’re in a major recession right now. And the auto industry is getting absolutely wrecked, you looked at that if you look at the numbers, a lot of these automakers are doing down like 20%.
Down like 30% 40% numbers for these automakers right. This is really important. Let me look at time this afternoon. By the way, when I look at the time, it’s because the camera shuts off at 30 minutes.
And if you ever wondered, why does the DSLR shut off at 30 minutes, why are they all forced to do that. And so the tax rate can be lower, because if it can record for longer than 30 minutes, it has to be called I think a camcorder and they get taxed at a higher rate.
Just a little FYI. Let me restart this already. There we go. So that’s that one. So that this is this is how you value it. Okay, your store, really, this is how you actually start doing it. This is one specific example.
And then you start figuring out the market capitalization, this company in the future is going to be ridiculously high right? Now, let’s run through a newer investment of mine a 2020. By right, let’s talk about the planet for a minute a planet 13. Right.
So this particular company, you know, I’m looking at in the space and how we value something like this, you know, people look at it today. And they’re like, you know, especially after the stocks gone up a lot.
I think the market capitalization now is right around 300 million or so for this company, right? So let’s say 300 mil, now, people are making the what I call the cardinal sin the same exact mistake with this one.
And by the way, this one’s a little more speculative, in my opinion than Tulsa. What’s. So this one has bigger risk, but also bigger reward potential in my opinion on this stock. Tesla was, you know, a 30 billion $40 billion market cap when I bought it. This one is, you know, yeah, when I was buying it, it was under $200 million market cap right.
But the cardinal sin people are making with this stock, in my opinion is they’re looking at what they’re doing today. And they’re saying it doesn’t it this company shouldn’t be valued the way it is today, because of what they’re doing today.
Right? The same exact problem that happened with Tesla, the same exact reason I never bought Amazon stock back in the day, because I looked at Amazon I was like that four piece seems so ridiculous. He Hi, look what Walmart trades at not realize that oh my gosh, Amazon’s gonna take out Walmart in the future as well, you know, tons of other retailers.
And they got this Amazon web services business that no one’s even looking at the tail end up being a Goliath, right? And that’s the profit machine for Amazon. So, you know, the cardinal sin people are making with this one, there’s looking at this one that like.
Oh, my gosh, it has one superstar. Okay, one big superstar big deal. And they’re like, this company doesn’t deserve to be at 300 mil. And if you’re valuing growth stocks that way, you’re just making a big, big mistake. Okay.
Because when I look at what this stocks, I say, Yeah, they got one superstore today, they’re likely going to have five to 10 superstores within the next five years. Okay? And what type of revenue can they likely do from those stores in the future?
And what type of comp store sales are they going to likely be able to get from their current locations over time, because it’s not just about you open the location, but then you have to build up business. So hopefully, that that superstore is doing much more business three years from now, five years from now than it was the day you opened it, right?
Because you weren’t so spread, customers has to start coming to him getting used to coming to that business and things like that, right? There’s a super obviously, you know, very, very important. So I looked at that.
I said that, and I look at the Amazon Web Services of this business that everybody’s missing are actually their owned brands, okay, they’re owned brands. And I looked at this massive category that going after this massive space, and they could potentially have the number one brand in gummies, they could potentially have the number one brand and chocolates as well as you know.
Flower related products and the MJ space. And so I’m looking at all this and I’m like, this is a potential multi billion dollar company in the future. Yeah, it has, you know, when I was buying it, I think it had $150 million market cap or $180 million mark cap or something like that.
And I was looking at it, I was like, yeah, that seems really rich. If you’re valuing it just off of the one superstore today that does, you know, let’s say 60 million or whatever in revenues, okay. You’re just going off of that.
But when you start running the numbers on where this company can likely be five years from now, and 10 years from now. It’s a whole lot bigger than it’s at where it is at today. And so this is what I like to do is an exercise with these type of companies.
Now there will be and so warning. So that’s why you can’t just buy any growth stock, okay? How you know, a growth stock is not a buy, is if you’re looking into one, and you run those five year out net income numbers, revenue numbers, once again, you can only figure out this type of stuff, if you understand the business on a very high level, the market capitalization, things like that.
And if five years out, came, if five years out, the numbers still look silly, okay? And they don’t make any sense. It’s not a buy, okay? It’s not a buy. If the numbers look silly, five years out, based upon the net income revenue rose, you know, you kind of drew up there, it’s not worth buying.
Okay, I can tell you when I looked into Tesla, and that was a, once again, I think, a 30 or $40 billion market cap, right. And I looked at this company, I said, the valuation today looks silly for this company. But in five years from now, it looks silly in a good way, in terms of it would be a steel and a half.
If this company was still valued at 30 or $40,000,000,000.05 years from now, it wouldn’t even make sense because of the type of revenues this company will likely have, in five years, the type of net income this company will likely have in five years, the type of market share this company will likely have in five years.
Like it just wouldn’t make sense. So I knew it was a steal the valuation the short term did not look right, the valuation long term was like I’m getting a steal on the stock, same exact thing with playing, I looked at this company, I was like, I’m paying 160 or $180 billion market for this company, whatever, right?
And looking at him like today, yes, that valuation makes no damn sense. But oh, my gosh, in five years from now, this valuation should be tremendously above where it’s at today, because this was a bit like could be a company that will be doing 300 million or 500 million in revenues, and have brands that just buy the brands themselves could be you know.
Commanding a valuation of $100 million or more just from several of these brands, you start putting all these pieces together. And that’s how you start figuring out on a valuation basis if something’s really a good deal on the growth, stock space, and then you can go after him.
Now something growth stocks provide you, okay. And this is kind of a really good thing, in my opinion, is volatility is the last piece I want to cover in this video volatility. And these growth stocks will usually be very volatile, okay.
Because their growth stocks and growth rates change, and everybody gets super positive and super negative on them. And when that volatility happens, and you’ve done your full research on the company, when you get those dips, you buy those dang dips, okay, exactly what I would did with Tesla, my cost based on the public count for Tesla’s 227.
I can tell you Tesla was well above 227 when I first started buying that stock, but as it dipped, dip, dip dip, I realized this those massive opportunities to love the stock, I bought a bought heavier and heavier, and I capitalize on that volatility.
That’s something you get in growth stocks you I mean, you can get in the stock market in general, but specifically with growth stocks, you have to take advantage of that volatility. And you don’t fear the stock going down in the short term.
A lot of people fear it. Do not fear. Big Four. Okay, Big Four. Are you retiring tomorrow, more likely, if you’re watching this video, you’re not retiring tomorrow. So whether your account says, you know, 50k, or 45k, or 55k doesn’t make that much of a difference, you’re not retiring tomorrow, right?
And as long as you always have money to funnel in, hopefully every month, right, if as long as you got your income and expenses, right, then you’re always in a position of power. And if you always have some sideline cash, you’re always putting yourself in a position of power.
So you can take advantage of this volatility right? And if you cannot consistently put money in your account each month, ask yourself, the real with yourself, do you have an income problem or an expense problem?
Because if you can’t put some kind of money in your account each month, you have one of those okay? And then you just have to be real with yourself okay, I have an income problem I need to get a better job and you start business need to do something that route right?
Or no, I have an expense prom, I know a lot of people that make a lot of money, never have any money to invest because they spend it all they get lifestyle inflation, they can never funnel money in their accounts because they just spend all their money right?
Maybe it’s an expense problem you have, but that’s something so big. As long as you always got money to funnel in each month and as long as you always got silo money, you can take care you and you can take full advantage of volatility and buy on dips.
And it’s not only me that does that I’ve seen so many people in my private group and as well as friends you know, invest with this philosophy, where they buy great companies when they dip dip dip, and they are able to make insane gains off those as those stocks come back.
And you know, over time the valuations end up getting reflected in those businesses where they’re going long term, and the gains are absolutely substantial. That is how I find my next million dollar stock. I hope you guys really enjoyed this hope you got an immense amount of value.
Please smash the thumbs up button for me doing this really, really in depth video. And let me know in the comments if you enjoyed it. And also if you’re looking to scale your stock market account, your you know you got at least 10,000 plus in the stock market. Trying to scale next level, check out the first link in the description down there as exclusive link for you and go ahead and apply.
You actually get on the phone with somebody high up from my team we can talk about where you’re trying to go in the stock market where your goals are and potential products actually we have out there that could help you tremendously in achieving.
Whatever you’re trying to get to in the future because we’ve been able to do it with so many people now through you know, the full systems I go through and my different products so hope you guys really enjoyed this. Thank you for watching and have a great day.