THE Magnificent 7 vs MY Magnificent 7
A few years back, people were OBSESSED with the Magnificent Seven. If you don’t know about them, they are Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
But there were rumblings that the Mag 7 had run its course. Their time was done, and it was time for some new companies to take over. So I assembled my own list, and I used my own fundamental analysis template, (yes, it’s free) to research them.
And yeah, I picked some of the OG Mag 7 stocks to put on mine. They were:
Apple, Meta, Nvidia, Palantir, Draftkings, Amazon, and Cava. Now, a lot of people got very upset that Palantir was on the list, which as an ethical investor, I understand. So people said, take PLTR off the list!! Okay, so I’ll run TWO Mag 7 lists for this blog post, where I replace PLTR with HIMS.
But first, let’s see how the S&P 500 has done in the last year:
9.48% - not bad. A lot of folks will tell you that long term, you cannot outperform the S&P 500. Well, let’s just see how the Mag 7 did last year:
The Mag 7’s average return over the last twelve months: roughly 21%
How did MY Mag 7 do? Roughly 51%, with PLTR and roughly 17% without PLTR.
And if we swap PLTR for HIMS, which I also purchased 1 year ago: roughly 33%
Not bad, huh? And yeah, the S&P 500 is considered the gold standard for long-term investing. But you can see that careful stock selection, along with a diversified portfolio, can lead to even stronger returns. Of course, past performance isn’t a guarantee of future results, but it does showcase the potential of picking high-growth winners.
The real question is: Can this outperformance continue? Only time will tell—but for now, I’m more than happy with the results.