Editor’s Note: You don’t have to be a hockey fan to understand the meaning behind one of Wayne Gretzky’s most memorable quotes, “You miss 100% of the shots you don’t take.”
As Alexander Green explains in today’s article, investors miss 100% of the winning stocks they don’t buy.
And here’s one shot you’re going to want to take…
Alex just discovered a little-known company behind a new medical breakthrough.
It only recently went public, yet it’s already taking in tens of millions of dollars… And it is poised to take in billions of dollars more in the near future.
Investors such as the Bill & Melinda Gates Foundation, the investment giant Fidelity, and fund manager Baillie Gifford have poured in more than $400 million.
Alex predicts that this could be the greatest early investing opportunity of the century. And the stock is trading for well under $10.
Click here to learn more about the stock you don’t want to miss.
– Madeline St.Clair, Assistant Managing Editor
Twenty years ago, I heard a stand-up comic ask the audience, “What’s the definition of a sports nut?”
The punchline: “Anyone who can name a hockey player other than Wayne Gretzky.”
Longtime fans of the sport will scoff. But let’s be honest…
“The Great One” was to hockey what Bob Marley was to reggae: the category killer.
In his 21 years, Gretzky scored 894 goals and had 1,963 assists. (No player in history has as many goals and assists combined as he has assists alone.)
Asked over the years how he managed this feat, Gretzky gave two answers that have become legendary.
- “You miss 100% of the shots you don’t take.”
- “I skate to where the puck is going to be, not where it has been.”
For investors, there is a lot of wisdom in those words.
Just as you miss 100% of the shots you don’t take, you miss 100% of the winning stocks you don’t buy.
How many millions of investors watched the parabolic rise in value of stocks like Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Netflix (Nasdaq: NFLX) and Tesla (Nasdaq: TSLA) – all up more than 100-fold – and never thought the time was right to invest in them ever?
They missed 100% of their potential shots.
Skating to where the puck was – rather than where it is going to be – is called “performance chasing” in the investment world.
Twenty-three years ago, investors chased dot-com stocks. They crashed and burned.
A decade later they rushed to make furious above-market bids on residential real estate. The property market imploded.
(And there is good evidence that another property bubble is developing today.)
Crypto speculators – I refuse to call them “investors” – chased Bitcoin and other digital currencies into the stratosphere. Now most are sitting on big losses.
A year ago, investors fell in love with “disruptive” tech companies that were not only pre-earnings but pre-revenue.
Result? Cathie Wood’s Ark Innovation ETF (NYSE: ARKK) – a good proxy for the “no price is too high to pay” approach to investing – is down almost a third this year and has more than halved in value over the last nine months.
These investors all ignored Gretzky’s sage advice. They skated to where the puck had been rather than where it was going to be.
This is a perennial problem.
Today, for example, most investors are chasing the same small group of “value stocks,” the new investment du jour that has outperformed the market in recent months.
True, there is still some upside here.
But Oxford Club Members picked up value stocks like CVS Health (NYSE: CVS), Energy Select Sector SPDR Fund (NYSE: XLE), Arch Capital (Nasdaq: ACGL) and Berkshire Hathaway (NYSE: BRK-B) more than a year ago.
Now we’re sitting on big profits.
We didn’t buy them because they were in favor but precisely because they were out of favor.
Want to skate now to where the puck will soon be?
Then invest a few dollars in one of the most promising and undervalued sectors in the market right now: small cap medical technology.
There are three good reasons to expect big returns here in the weeks and months ahead.
- Healthcare is recession-resistant. It doesn’t matter whether the economy is expanding or contracting, whether inflation is hotter or colder, or whether interest rates are rising or falling. People who need medical attention will seek it and find it. You can take economic forecasting off the table. The demand for medical services is largely inelastic.
- Innovation is constant. New medical devices are protecting, extending and saving our lives. Virtually all are patent protected. That stops competition, puts a moat around profit margins, and drives strong top- and bottom-line growth.
- It’s the perfect contrarian investment. Technology stocks have been hit hard this year. But small cap tech stocks – including those in the medical field – are lying in the bargain bin, unloved and undervalued. And therein lies a huge opportunity.
I recently sat down with bestselling author and longtime subscriber Bill O’Reilly to discuss this phenomenon – and recommend what I believe is the very best small cap medical technology play in the sector.
It has as much upside potential as anything I’m recommending in any of my six current portfolios.
To view our discussion, click here.
In my conversation with Bill, I explain why medical technology is where the puck is going to be – and reveal the name (and ticker symbol) of the most exciting innovator in the sector.
The only question Wayne Gretzky would ask at this point is “Will you take the shot?”