Growth Stock Selection

Time: 60-90 minutes Cost: $0 to learn (plus investment capital when ready) Platform: Ape AI (askape.com) + Your brokerage Best for: Investors seeking capital appreciation through fast-growing companies Companion: Maverick (for growth opportunities) + Money (for financial analysis)

What You'll Learn

By the end of this workflow, you'll be able to:

  1. ✅ Understand what growth investing is and why it can deliver outsized returns

  2. ✅ Identify high-growth companies using key metrics (revenue growth, TAM, market share)

  3. ✅ Evaluate if a growth stock's price is justified or overvalued

  4. ✅ Distinguish between quality growth and hype/bubbles

  5. ✅ Use Maverick to find emerging growth opportunities

  6. ✅ Build a growth-focused portfolio that balances risk and reward

  7. ✅ Manage the volatility that comes with growth investing

What is Growth Investing?

The Philosophy

Growth investing is buying stocks of companies that are growing revenues, earnings, and market share significantly faster than the overall market.

The Core Principle:

"Pay a fair price for exceptional growth. The compounding will reward you handsomely."

Unlike value investors who seek discounts, growth investors pay premium prices for companies with:

  • Exceptional growth rates (20-50%+ annually)

  • Large addressable markets (TAM)

  • Disruptive products or business models

  • Strong competitive advantages (moats)

  • Long runways for expansion

The Bet: If a company's earnings grow 30%/year for 10 years, a "high" P/E of 40 today will look cheap in retrospect.

Historical Performance

Why Growth Investing Works:

  • From 1927-2020, growth stocks outperformed value by ~30% in bull markets

  • Top tech companies (FAANG): 300-1,000%+ returns over decade

  • Amazon (1997-2023): +180,000% (turned $10k into $18 million)

  • Apple (2003-2023): +55,000% (turned $10k into $5.5 million)

  • Netflix (2002-2021): +41,000% (turned $10k into $4.1 million)

The Catch:

  • High volatility (50-80% drawdowns during bear markets)

  • Many growth stocks fail (Pets.com, WeWork, etc.)

  • Requires stomach for wild swings

  • Can underperform for years during value cycles

Famous Growth Investors:

  • Peter Lynch - Fidelity Magellan Fund, 29% annual returns for 13 years

  • Cathie Wood - ARK Invest, focused on disruptive innovation

  • Philip Fisher - Pioneered growth investing, influenced Warren Buffett

  • Thomas Rowe Price Jr. - Founded T. Rowe Price, focused on growth stocks

Growth vs. Value Investing

Aspect
Growth Investing
Value Investing

Focus

Fast-growing companies

Undervalued, established companies

Valuation

Willing to pay high P/E (30-100+)

Seek low P/E (<15)

Timeframe

3-10 years (let growth compound)

2-5 years (wait for revaluation)

Risk

High volatility, potential to overpay

Value traps, slow/no appreciation

Best Markets

Bull markets, low interest rates

Bear markets, high interest rates

Dividends

Rare (growth companies reinvest profits)

Common (mature companies pay out)

Examples

Tech, biotech, EVs, AI

Banks, energy, industrials, utilities

Both can work - this workflow focuses on growth.

Key Growth Investing Metrics

Metric #1: Revenue Growth Rate

Formula:

What to look for:

  • 20%+ annually: Solid growth

  • 30-50%+ annually: Exceptional growth

  • 100%+ annually: Hyper-growth (often early-stage)

Example:

  • 2023 Revenue: $500 million

  • 2024 Revenue: $700 million

  • Growth = (($700M - $500M) / $500M) × 100 = 40%

Why it matters:

  • Revenue growth is harder to manipulate than earnings

  • Shows real customer demand for products/services

  • Leading indicator of future profitability

Important: Look for consistent growth (not one-time spike).

Using Maverick to Find High-Growth Revenue:

Metric #2: Earnings Growth Rate

Formula:

What to look for:

  • 15%+ annually: Good growth

  • 25%+ annually: Excellent growth

  • 50%+ annually: Exceptional (may not be sustainable)

Example:

  • 2023 EPS: $2.00

  • 2024 EPS: $2.80

  • Growth = (($2.80 - $2.00) / $2.00) × 100 = 40%

Why it matters:

  • Shows the company is not just growing revenue, but converting it to profit

  • Indicates improving efficiency and operating leverage

  • Directly drives stock price appreciation

Note: Early-stage growth companies may not be profitable yet. That's OK if revenue growth is strong and path to profitability is clear.

Metric #3: PEG Ratio (Price/Earnings-to-Growth)

Formula:

What it means: Whether you're paying a fair price for the growth you're getting.

Example:

  • Stock has P/E of 40

  • Earnings growing at 50%/year

  • PEG = 40 / 50 = 0.8

Interpretation:

  • PEG < 1.0: Undervalued relative to growth (good buy)

  • PEG = 1.0: Fairly valued

  • PEG 1.0-2.0: Slight premium (acceptable for quality growth)

  • PEG > 2.0: Overvalued (paying too much for growth)

Peter Lynch's Rule:

"A fairly priced growth stock should have a PEG ratio of 1.0. Under 1.0 is cheap, over 2.0 is expensive."

Example Comparison:

Stock A:

  • P/E: 60, Growth: 30%, PEG: 2.0 → Expensive

Stock B:

  • P/E: 35, Growth: 40%, PEG: 0.875 → Good value for growth!

Stock C:

  • P/E: 25, Growth: 50%, PEG: 0.5 → Exceptional value!

Ask Money Monty:

Metric #4: Total Addressable Market (TAM)

What it means: The total market opportunity if the company captured 100% market share.

Why it matters:

  • A company with $1B revenue in a $5B market has limited upside (already 20% share)

  • A company with $1B revenue in a $500B market has huge runway (only 0.2% share)

Example:

  • Stripe (payments): TAM ~$2 trillion (global payments market)

  • Airbnb (lodging): TAM ~$1.8 trillion (global travel/hospitality)

  • Shopify (e-commerce): TAM ~$5 trillion (global e-commerce)

What to look for:

  • TAM should be at least 10× current revenue (room to grow)

  • Ideally 50-100× current revenue (massive runway)

  • Growing TAM is even better (market itself expanding)

Example:

  • Company has $500M revenue

  • TAM is $50 billion

  • Currently 1% market share

  • If they reach 10% share (realistic for category leader) → $5B revenue (10× growth)

Ask Maverick:

Metric #5: Rule of 40

Formula:

What it means: A simple test for sustainable growth in software/SaaS companies.

Rule:

  • ≥ 40: Excellent (healthy balance of growth and profitability)

  • 30-40: Good (acceptable)

  • < 30: Poor (either too slow growth or too unprofitable)

Example 1 (High Growth, Low Profit):

  • Revenue growth: 50%

  • Profit margin: -5% (losing money)

  • Rule of 40: 50 + (-5) = 45 ✅ (Acceptable, growth justifies losses)

Example 2 (Moderate Growth, High Profit):

  • Revenue growth: 15%

  • Profit margin: 30%

  • Rule of 40: 15 + 30 = 45 ✅ (Acceptable, profitable and growing)

Example 3 (Slow Growth, Unprofitable):

  • Revenue growth: 10%

  • Profit margin: -15%

  • Rule of 40: 10 + (-15) = -5 ❌ (Red flag! Slow growth AND losing money)

Best used for: SaaS, cloud software, subscription businesses

Ask Money Monty:

Metric #6: Customer/User Growth

What to track:

  • Number of active users (for consumer apps)

  • Number of paying customers (for B2B)

  • Customer retention rate (% of customers who stay)

  • Net Dollar Retention (revenue from existing customers over time)

Example:

  • Spotify: 220M users (2020) → 615M users (2024) = 180% growth

  • Shopify: 1M merchants (2019) → 4.4M merchants (2024) = 340% growth

Why it matters:

  • Revenue growth often follows user growth

  • High user growth = product-market fit

  • Shows momentum and adoption

What to look for:

  • User/customer growth ≥ revenue growth: Healthy (monetization may improve later)

  • User growth < revenue growth: Mixed (growing revenue per user, but slowing adoption)

  • Accelerating user growth: Exceptional (hitting inflection point)

Ask Maverick:

The Growth Stock Selection Process

Step 1: Identify Growth Themes and Sectors

Top Growth Sectors (Historically):

1. Technology:

  • Cloud computing (AWS, Azure, Google Cloud)

  • Software-as-a-Service (Salesforce, Adobe, ServiceNow)

  • Cybersecurity (CrowdStrike, Palo Alto Networks)

  • Semiconductors (NVIDIA, AMD, TSMC)

  • E-commerce (Amazon, Shopify, MercadoLibre)

2. Healthcare/Biotech:

  • Gene therapy (CRISPR, Vertex)

  • Weight loss drugs (Novo Nordisk, Eli Lilly)

  • Medical devices (Intuitive Surgical)

  • Health tech (Teladoc, Dexcom)

3. Consumer Discretionary:

  • Electric vehicles (Tesla, Rivian)

  • Streaming (Netflix, Disney+)

  • Sports betting/gaming (DraftKings, Flutter)

4. Clean Energy:

  • Solar (First Solar, Enphase)

  • Wind (Vestas, Orsted)

  • Energy storage (Tesla, Fluence)

  • EVs and charging infrastructure

5. Fintech:

  • Digital payments (PayPal, Block/Square)

  • Buy-now-pay-later (Affirm, Klarna)

  • Crypto exchanges (Coinbase)

  • Neobanks (SoFi, Chime)

Using Maverick to Find Emerging Themes:

Step 2: Screen for Growth Candidates

Using Maverick for Growth Screening:

Alternative: Thematic Growth Screen:

Step 3: Deep Dive on Top Candidates

From the screening, pick 5-7 stocks for deeper analysis.

Questions to Ask Money Monty:

Step 4: Evaluate the Growth Narrative

The Story Should Make Sense:

Every great growth stock has a compelling narrative:

  • Amazon (2000s): "E-commerce will replace physical retail"

  • Netflix (2010s): "Streaming will replace cable TV"

  • Tesla (2010s-2020s): "EVs will replace gas cars"

  • NVIDIA (2020s): "AI will transform every industry"

Ask yourself:

  1. Is the trend real and sustainable? (Not just hype)

  2. Is the TAM large enough? (Can support 10× growth)

  3. Does this company have a sustainable advantage? (Or will competition crush margins?)

  4. Can they execute? (Strong management, proven track record)

  5. What's the bear case? (Why might this fail?)

Using Maverick to Validate the Narrative:

Step 5: Check Valuation (Avoid Overpaying)

Growth stocks can be expensive, but there are limits.

Red Flags (Overvaluation):

  • ❌ P/E over 100 (unless hyper-growth like 100%+ revenue growth)

  • ❌ P/S over 20 (paying 20× annual sales)

  • ❌ PEG over 3.0 (paying 3× too much for growth)

  • ❌ Market cap bigger than realistic revenue potential (in 10 years)

  • ❌ Stock up 500%+ in 12 months with no fundamental change

Example of Overvaluation (2021 Bubble):

  • Rivian IPO: $100B market cap, $0 revenue

  • Snowflake: P/S of 100+ (paying 100× sales)

  • Many SPACs: Trading at 10-20× projected revenue (years away)

Result: Most crashed 70-90% in 2022.

Green Flags (Fair Valuation for Growth):

  • ✅ PEG under 2.0

  • ✅ P/S under 15 (for high-growth SaaS)

  • ✅ P/E under 50 (for profitable growth companies)

  • ✅ Reasonable path to 3-5× revenue in 5-10 years

  • ✅ Market cap is < 20% of TAM

Ask Money Monty:

Step 6: Assess Management Quality

Great growth companies need great leaders.

What to look for:

✅ Founder-led companies:

  • Founders often have longer-term vision

  • More willing to sacrifice short-term profits for long-term growth

  • Examples: Bezos (Amazon), Musk (Tesla), Zuckerberg (Meta), Huang (NVIDIA)

✅ Insider ownership:

  • Management owns significant stock (>5% of company)

  • Aligned incentives (they win when shareholders win)

  • Less likely to make short-sighted decisions

✅ Track record of execution:

  • Consistently hit or beat guidance

  • Successfully launched new products

  • Scaled the business effectively

✅ Capital allocation skills:

  • Smart acquisitions (not overpaying)

  • Investing in R&D and growth

  • Not wasting money on stock buybacks when stock is overvalued

Red Flags:

❌ High executive turnover:

  • CEO or CFO changes multiple times in 3 years

  • Signals internal problems

❌ Insider selling:

  • Executives selling large portions of stock (>50%)

  • May indicate they think stock is overvalued

❌ Overpromising, underdelivering:

  • Consistently miss guidance

  • Announce big initiatives that never materialize

  • Lost credibility with investors

Ask Maverick:

Building a Growth Portfolio

Portfolio Construction Principles

1. Diversification Across Growth Stages:

Mature Growth (40% of portfolio):

  • Large-cap companies (>$50B)

  • Consistent 15-25% growth

  • Profitable with strong cash flow

  • Lower risk, lower upside

  • Examples: Microsoft, Apple, Adobe, Visa

Mid-Stage Growth (40% of portfolio):

  • Mid-cap companies ($5B-$50B)

  • 25-50% growth

  • Approaching profitability or recently profitable

  • Moderate risk, moderate upside

  • Examples: CrowdStrike, Datadog, Shopify, DraftKings

Early-Stage Growth (20% of portfolio):

  • Small-cap companies ($1B-$5B)

  • 50-100%+ growth

  • Often unprofitable (investing for growth)

  • High risk, high upside

  • Examples: Depends on market (emerging companies)

Why this allocation?

  • 40% mature = stability and steady growth

  • 40% mid-stage = sweet spot (growth + manageable risk)

  • 20% early-stage = moonshot potential (but limited downside)

2. Sector Diversification:

Don't put all your growth bets in one sector.

Example Allocation:

  • 35% Technology (cloud, software, semiconductors)

  • 25% Healthcare/Biotech (drugs, devices, health tech)

  • 20% Consumer Discretionary (e-commerce, streaming, EVs)

  • 10% Financials (fintech, payments)

  • 10% Clean Energy / Other Themes

Why? If one sector crashes (like tech in 2022), you're not wiped out.

3. Position Sizing:

Conservative:

  • 10-15 stocks

  • Each position: 5-10% of portfolio

  • Max position: 10%

Moderate:

  • 15-20 stocks

  • Each position: 4-7% of portfolio

  • Max position: 10%

Aggressive (concentrated):

  • 8-12 stocks

  • Each position: 7-12% of portfolio

  • Max position: 15%

Rule: Never let a single stock exceed 20% of your portfolio (even if it grows to that size, trim and rebalance).

Sample Growth Portfolio ($10,000)

Strategy: Balanced growth with diversification

Mature Growth (40% = $4,000):

  • 10% Microsoft (MSFT) - Cloud + AI = $1,000

  • 10% Apple (AAPL) - Services growth + ecosystem = $1,000

  • 10% Visa (V) - Digital payments = $1,000

  • 10% Alphabet (GOOGL) - Search + Cloud + AI = $1,000

Mid-Stage Growth (40% = $4,000):

  • 10% CrowdStrike (CRWD) - Cybersecurity = $1,000

  • 10% Shopify (SHOP) - E-commerce platform = $1,000

  • 10% DraftKings (DKNG) - Sports betting = $1,000

  • 10% Datadog (DDOG) - Cloud monitoring = $1,000

Early-Stage Growth (20% = $2,000):

  • 7% SoFi (SOFI) - Fintech = $700

  • 7% Rivian (RIVN) - EV maker = $700

  • 6% [Your pick: emerging AI/biotech/clean energy company] = $600

Portfolio Characteristics:

  • Blended revenue growth: ~25-30% (weighted average)

  • Mix of profitable and unprofitable (investing for growth)

  • Diversified across sectors

  • Mix of established (MSFT, AAPL) and emerging (SOFI, RIVN)

Expected Performance:

  • Bull market: 25-40% annual returns

  • Bear market: -30% to -50% drawdowns

  • Long-term (10 years): 15-20% annualized (if you can stomach volatility)

Alternative: Growth ETF Portfolio

For hands-off growth exposure:

Allocation:

  • 50% QQQ (Invesco QQQ ETF) - Nasdaq-100, tech-heavy growth

  • 30% ARKK (ARK Innovation ETF) - Disruptive innovation

  • 20% VONG (Vanguard Russell 1000 Growth) - Broad growth

Pros:

  • Instant diversification (100+ stocks)

  • Professional management (especially ARKK)

  • Lower single-stock risk

  • Easy to manage

Cons:

  • Can't outperform (just match the growth indices)

  • Higher fees for ARKK (0.75% vs. 0.20% for QQQ)

  • Less control over holdings

Best for: Investors who want growth exposure but don't want to pick individual stocks.

Managing Growth Stock Volatility

Expect Wild Swings

Growth stocks are VOLATILE.

Historical Drawdowns (Peak to Trough):

  • Netflix (2011): -80% (over 12 months)

  • Tesla (2019): -60%

  • NVIDIA (2018): -50%

  • Amazon (2000-2002): -95%

  • Entire Nasdaq (2000-2002): -78%

  • Entire Nasdaq (2022): -33%

All of these recovered and went on to new highs (eventually).

The Reality:

  • 20-30% pullbacks are NORMAL in growth stocks

  • 40-50% pullbacks happen every few years

  • 60-80% crashes happen during major bear markets

You MUST be able to stomach this to invest in growth.

How to Stay Calm During Volatility

1. Don't Check Prices Daily:

  • Growth stocks swing 5-10% per day on no news

  • Daily checking = emotional roller coaster

  • Check weekly or monthly instead

2. Focus on Fundamentals, Not Price:

  • Is revenue still growing?

  • Is the user base still expanding?

  • Is the long-term thesis intact?

If YES: Price drops are noise (or buying opportunities) If NO: Thesis broken, consider exiting

3. Use Volatility to Your Advantage (Buy the Dip):

Strategy: Keep 10-20% cash to deploy during crashes

Example:

  • You own $9,000 in growth stocks + $1,000 cash

  • Market crashes 30%

  • Your $9,000 portfolio → $6,300

  • Deploy $1,000 cash at 30% discount

  • Total: $7,300 (vs. $7,000 if fully invested)

Bonus: When it recovers, you bought more shares cheap.

4. Set Stop-Losses for Disaster Scenarios:

Conservative approach:

  • Set stop-loss at 40-50% below purchase price

  • If stock drops that much, fundamentals likely broken

  • Exit and redeploy to better opportunity

Example:

  • Buy at $100

  • Stop-loss at $50

  • If it hits $50, auto-sell

  • Prevents 90% wipeouts (like Pets.com, WeWork, etc.)

Note: Only use for your highest-risk positions (early-stage growth). Don't use for mature growth stocks (they can recover).

5. Rebalance After Big Moves:

Scenario:

  • Start with $1,000 each in 10 stocks

  • One stock (Stock A) 5× in 2 years → now $5,000

  • Other 9 stocks flat → still $9,000 total

  • Total portfolio: $14,000

  • Stock A is now 35% of portfolio (risk!)

Action:

  • Trim Stock A from $5,000 to $1,500 (sell $3,500)

  • Reallocate $3,500 to other positions or new opportunities

  • Lock in gains, reduce concentration risk

Rule: If any stock grows to >20% of portfolio, trim to 10-15%.

Growth Investing Mistakes to Avoid

Mistake #1: Chasing Hype (FOMO)

The Trap:

  • Stock is up 300% in 6 months

  • Everyone talking about it (Reddit, Twitter, CNBC)

  • You buy at the top out of FOMO

  • Stock crashes 70% in next 6 months

Real Examples:

  • GameStop (2021): $500 → $40 (-92%)

  • Zoom (2020): $588 → $70 (-88%)

  • Peloton (2020): $162 → $8 (-95%)

The Fix:

  • Never buy a stock just because it's "hot"

  • Wait for pullbacks (20-30% dips) to establish positions

  • Ask yourself: "Would I buy this if nobody was talking about it?"

Using Maverick to Avoid Hype:

Mistake #2: Ignoring Profitability Path

The Trap:

  • Company growing revenue 100%/year but losing money

  • You assume "they'll figure out profitability later"

  • Years pass, still unprofitable, cash running out

  • Stock collapses

Real Examples:

  • Uber (unprofitable for 10+ years, finally profitable 2023)

  • WeWork (never achieved profitability, collapsed)

  • Many 2020-2021 SPACs (still burning cash, stocks down 80-90%)

The Fix:

  • Ask: "How and when will they become profitable?"

  • Check cash burn rate vs. cash on hand (runway)

  • Look for improving unit economics (gross margins)

  • If no clear path to profitability in 3-5 years, avoid

Check with Money:

Mistake #3: Overconcentration

The Trap:

  • You find one growth stock you love

  • Put 30-50% of portfolio in it

  • Stock crashes 60%

  • Your entire portfolio down 20-30%

Example:

  • 50% in Tesla (2021)

  • Tesla drops 70% (2022)

  • Portfolio down 35%

  • Takes years to recover

The Fix:

  • Max 10-15% per stock

  • 15-20 stocks minimum for growth portfolio

  • Even your "highest conviction" pick: Max 15%

Mistake #4: Falling in Love with Stocks

The Trap:

  • You bought a stock and it's done well

  • You're emotionally attached

  • Stock becomes overvalued (PEG > 3, P/E > 80)

  • You refuse to trim/sell

  • Stock crashes, you give back all gains

The Fix:

  • Have sell disciplines:

    • Trim when PEG exceeds 3.0

    • Trim when position exceeds 20% of portfolio

    • Sell if fundamentals deteriorate

  • Remember: You married your spouse, not your stocks

Mistake #5: Panic Selling During Corrections

The Trap:

  • Market corrects 20-30%

  • Your growth stocks down 40-50%

  • You panic sell to "stop the bleeding"

  • Market recovers, you miss the rebound

Example:

  • Sell growth stocks in March 2020 COVID crash

  • Miss the 100%+ recovery over next 12 months

The Fix:

  • Don't sell on price alone

  • Ask: "Have the fundamentals changed?"

  • If thesis intact: Hold or buy more

  • If thesis broken: Then sell

Use Sage for Perspective:

Using Maverick for Growth Investing

Best Prompts for Finding Growth Stocks

Weekly Growth Screen:

Emerging Theme Screen:

Breakout Stock Finder:

Growth Analysis Prompts

Complete Growth Assessment:

Comparison for Growth Stocks:

Growth Investing Success Stories

Case Study #1: Amazon (1997-2023)

Initial Investment Thesis (1997):

  • E-commerce will replace physical retail

  • Started with books, expanding to everything

  • Revenue growing 800%+ annually

  • Unprofitable but investing for long-term

Valuation at IPO:

  • Price: $18/share

  • Market cap: ~$400M

  • P/E: N/A (unprofitable)

  • P/S: ~8× (seemed expensive!)

The Journey:

  • 2000-2002: Crashed 95% ($100 → $5) during dot-com bust

  • Many sold, assuming it would fail

  • Revenue kept growing 20-40%/year

  • Eventually profitable (2003)

  • Expanded to cloud (AWS), Prime, devices

Results:

  • 2023 price: ~$3,200/share (split-adjusted)

  • Return: 180,000%+

  • $10,000 → $18 million

Lessons:

  • Great growth stories take decades to play out

  • Unprofitability early is OK if path is clear

  • Volatility is the price of admission (-95% drawdown!)

  • Long-term winners compensate for all the losers

Case Study #2: Netflix (2002-2021)

Initial Thesis (2002):

  • DVD-by-mail disrupting Blockbuster

  • Subscription model (recurring revenue)

  • Growing 50%+ annually

  • Small TAM initially (just DVD rentals)

Pivot to Streaming (2007):

  • Saw streaming as future of entertainment

  • Massive TAM (replace cable TV)

  • Invested billions in content

  • Revenue accelerated to 30-50%/year

The Volatility:

  • 2011: Crashed 80% ($300 → $53) after price increase backlash

  • Most investors sold

  • Company recovered, kept growing

  • 2021 peak: $700/share

Results:

  • 2002-2021 return: 41,000%+

  • $10,000 → $4.1 million

Lessons:

  • Best growth companies pivot and evolve (DVD → Streaming)

  • 80% drawdowns are survivable if fundamentals intact

  • TAM expansion unlocks next growth phase

  • High conviction required to hold through volatility

Case Study #3: NVIDIA (2015-2024)

Initial Thesis (2015):

  • Dominant in gaming GPUs (60% market share)

  • Expanding to data centers

  • Revenue growing 15-25%/year (solid but not spectacular)

Inflection Point (2016-2017):

  • GPUs perfect for AI/machine learning

  • Data center revenue accelerating

  • New TAM: $1 trillion (AI infrastructure)

AI Boom (2022-2024):

  • ChatGPT launches, AI explodes

  • NVIDIA chips essential for AI training

  • Revenue growth: 100-200%+ annually

  • Became key picks-and-shovels play for AI

Results:

  • 2015 price: ~$5/share (split-adjusted)

  • 2024 price: ~$140/share

  • Return: 2,700%+ in 9 years

  • $10,000 → $280,000

Lessons:

  • TAM expansion = growth re-acceleration

  • "Picks and shovels" plays (sell to gold miners) can be best growth bets

  • Market leadership + new technology = explosive growth

  • Even "mature" companies can become growth stocks again

Success Checklist

By the end of this workflow, you should have:

🎉 Congratulations! You've learned how to identify and invest in the next generation of market leaders!

What's Next?

Now that you've mastered growth stock selection:

Related Workflows:

Continue Learning:

  • Read "One Up On Wall Street" by Peter Lynch (growth investing classic)

  • Study FAANG earnings reports (learn how growth companies report)

  • Follow growth investors on Twitter/X (Cathie Wood, ARK Invest research)

  • Join growth investing communities (r/stocks, r/investing on Reddit)

Practice:

  • Run weekly growth screens using Maverick

  • Analyze 1-2 growth stocks per week

  • Paper trade growth positions before using real money

  • Track earnings releases for your holdings

Remember: Growth investing requires conviction, patience, and tolerance for volatility. The rewards can be life-changing, but you must be able to stomach 30-50% drawdowns without panicking.

"The stock market is a device for transferring money from the impatient to the patient." — Warren Buffett

Your future self will thank you! 🚀📈💰

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