As I look through my portfolio, I realize that a lot of my best performing stocks are companies that dared to do something new and different:
Tesla – one of the first companies to mass produce electric vehicles
Shopify – revolutionized e-commerce and made the benefits of running an e-commerce business accessible to the average person.
Pure storage – Was on the frontier of flash data storage.
Lithium Americas – On the frontier of lithium mining for electric vehicle batteries.
Square – Electronic payment method for the little guys.
The list continues for my top 10-15 stocks, but you get the idea. Innovative and groundbreaking companies tend to perform pretty well, especially when you buy in while they are just getting started.
The key is to do a LOT of research on a company and only invest a small amount.
I have taken this approach with a few companies this past month in hopes that it will pay off in the next 5-10 years:
Rocket Lab – One of the few public rocket / satellite companies.
Celsius – One of the first healthy alternative energy drinks
Sprouts Farmers Market – Health forward grocery store with no processed foods.
Gigacloud technology – B2B marketplace provider focused on e-commerce.
We will see how these investments pan out. But I am certain they are all doing something new and different. Of course, I analyze the financial health of these companies as well.
Curious what you guys think about this approach. Also curious if you have any companies on your radar that pass this test.
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