𝗔 π—¦π—§π—’π—–π—ž π—Ÿπ—’π—©π—˜ 𝗦𝗧𝗒π—₯𝗬

I dated a girl around 2010

Who put a % of every paycheck into

Home Depot stocks $HD

ME: Home Depot? That’s boring

She smiled slyly, but gave me a look that said

You won’t understand so I’m not going to explain it to you

~ Thread ~ πŸ‘‡πŸ‘‡
(1) Over the years I tracked $HD

If she kept those stocks until today

Her return in 10 yrs would be 823% or 25% per yr

(not incl dividends)
(2) So instead of putting all my $ into index funds

I started putting a small % of $ into stocks around 2011

Today, my portfolio has grown to over $560K+

Thanks to a couple multi baggers like..
(3)

-> $ACN: 543% in 10 yrs / 21% per yr
-> $V: 890% in 8 yrs / 33% per yr
-> $ALGN: 317% in 3 yrs / 61% per yr
-> $DOCU: 389% in 2 yrs / 121% per yr

And many others
(4) How do you find multi baggers?

Here are the top 20 stocks of the past decade

Not a lot of household names

But you probably could have picked 1 or 2 from this list

$NFLX
$ALGN
$ULTA
$AMZN
$ROSS
$MA
(5) Not familiar with those?

Then what about this list of winners?

$AAPL $CRM $V $ADBE $SBUX
$NKE $COST $MSFT $DIS $GOOGL

I bet you could have easily picked 5 of these

Looking at some of the products you buy

Or the companies you love
(6) But what if the stock goes down?

How do you hold through those?

You utilize a Portfolio Strategy

Similar to an Index Fund, but instead of picking 500 S&P stocks

You pick a basket of 10-15 of the best stocks
(7) You'd invest similar to an Index Fund ->

Same amount allocated into each stock each time

(I’d bet this feature will be available at a few brokerages next yr if not sooner)

If you pick 2 or 3 multi baggers, a few stocks could do poorly

And you’d still be fine
(8)Let’s use the Home Depot example

In this example, you invested in 3 multi baggers ($HD like stocks)

You invested in 4 average stocks

And 3 duds --> 1 even loses 90% of its value 😨

You’d still end up with a ~15% return over 10 yrs

Not bad…
(9) 15% is only a bit more than market avg, why waste my time?

Well, it’s the diff between being comfortable to being rich

A decent retirement vs. set for life

Say there are 3 people all at age 30.

They have decided to save $1,000 a month.

Where would they be at age 65?
(10)

The Saver (2%): $607,548
The Index Investor (10%): $3,796,638
The Index Crusher (15%): $14,677,180

The difference is an additional $11 million dollars

🀯🀯🀯
(11) So.. you may still want to put your money into index funds

That’s fine - people have different investing styles and risk tolerances

BUT if I have convinced you just a bit ..

Start putting a small % of $ into stocks

Pick a couple of products / businesses you love
(12) That’s how you’ll learn and

That’s how your knowledge compound

~ End ~

If you enjoyed this thread, I would appreciate it if you like all the tweets in here and retweet the top one.

And click follow. Questions? -> DMs open

Thanks for reading!
You can follow @indexcrusher.
Tip: mention @twtextapp on a Twitter thread with the keyword β€œunroll” to get a link to it.

Latest Threads Unrolled:

By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.