The Three Laws of Hypergrowth Stocks
One of the most successful companies to go public in the last 30 years is Amgen.
In fact, from 1984 to today, Amgen has shot up a staggering 166,980% – going from $0.10 per share to around $167.
Had you invested a mere $600 in Amgen back then, you’d be a millionaire today.
This is the exact type of company I look for in my Exponential Tech Investor research service.
If you want to make technology stocks part of your portfolio, here are the three indicators you should look for…
Indicator #1: Exponential Technology
When I analyze technology startups, the first thing I want to know is whether the company is using leading-edge technology, what I call “exponential technology,” in its product or service.
What is exponential technology?
Simply put: It is technology that improves rapidly every year instead of a slow, linear climb.
Consider computers. The speed of our computers’ processing power has been doubling every two years over the last 45 years. That makes its growth truly “exponential.”
And it’s happening in various sectors today, like medicine, robotics, artificial intelligence, and information technology.
My advice: If the tech company you’re looking at is not using breakthrough technology that’s improving by leaps and bounds each year, move on.
Indicator #2: Momentum
Once you’ve determined the company is using exponential technology as part of its product or service… the next thing you want to know is:
Is the industry it’s delivering this product or service to growing? More specifically, is this industry growing exponentially?
Here, consider Amgen, the company I mentioned in the start. Over a period of five years in the mid-90s, the industry as a whole was growing at a click of almost 40% per year.
Its industry was doubling about every two years. The market size, and thus the opportunity for Amgen, was growing exponentially.