Apple’s incredible 1000% gain in the past decade is a testament to its success. However, focusing solely on familiar favorites can blind you to even bigger opportunities.
Enter Nvidia, which quietly delivered a staggering 19,000% return in the same period. Beyond the Familiar: Many investors hold onto their favorite stocks, like Apple, Reliance, or HDFC Bank, due to past performance or personal preference. But this can lead to missing out on hidden gems like Nvidia.
The Power of Momentum: Momentum investing strategies, which rotate portfolios based on recent performance, automatically capture these rising stars. In our US educational portfolio, holdings like Nvidia, AMD, and Adobe have fueled outperformance, regardless of past favorites.
The Indian Parallel: The recent surge in PSU banks, once considered underdogs, exemplifies the power of momentum. Price momentum and liquidity flows propelled them into our portfolios, leading to strong returns across the board.
The Key Takeaway: Don’t let familiarity bias cloud your judgment. Employing a systematic approach, like momentum investing, can help you identify and ride the next wave of big winners, even if they’re not your usual suspects.
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