Does your portfolio hold today’s market leaders? Well, it should!
Holding market leaders is a very effective strategy for building long-term wealth through the stock market. These companies typically have strong competitive advantages with the products/services they provide, their high-level of financial stability, and their ability to sustain consistent growth. This makes certain stocks better prepared for volatile markets and positioned favorably for upswings in the future. By holding these names, investors can potentially capture attractive gains and reduce the risk of underperforming the rest of the market.
Let’s look no further than today’s market leader, NVDIA. It’s no secret that NVDIA has been the talk of the market for the last 2 years. Over that span, NVDIA has risen 711%! This is mainly due to consistency in strong earnings reported and its reputation as the leader of creating and distributing semiconductor chips. And although it’s hard to determine when a certain stock is about to take off on a massive bull run, you still could have obtained a return of 181% buying the stock a year later.
Microsoft is another example of a stock that has been a leader for many years (or even decades). If you were unfortunate enough to buy Microsoft at its high of $37.00 (right before the Great Recession), you still would have obtained a $1,018% return if held to this very day! Why is that? Because Microsoft is a leader in cloud computing that delivers strong financial results on a consistent basis.
