Well, as a part of a diversified portfolio, not much.
💰These are great stocks to consider adding to your portfolio. BUT if you were a conservative investor who opted for slow and steady growth exclusively, because market volatility made you nervous …
Just take a look at the 10 year returns of …
KO (⬆️69%) vs. CELH (⬆️7200%)
JNJ (⬆️62%) vs. HIMS (275% in 5 years, not public for 10)
VZ (⬇️12%) vs TMUS (⬆️694%)
IBM (⬆️55%) vs. NVDA (⬆️23,000%)
These massive blue chip stocks usually experience slower revenue growth, mediocre dividend returns, legal battles (JNJ) and inflation related pain.
I get that people think they’re safe - and they are, as a part of a diversified portfolio (🤫 saying diverse is illegal these days), but when’s the last time you saw a blue chip stock 10x?
So, are these BAD companies to invest in? Absolutely not.
⏰The downside to only investing in massive growth companies is getting in at the right time.
🚨Most investors can’t do this … or they find out too late. Does that mean they shouldn’t consider investing in newer growth companies? No, but it’s also unrealistic to assume that because NVDA did 23,000% in the last decade that it’ll do it again in the next.
📝The best strategy: Be diversified. Opt for a mixture of ETFs for long term safety, large cap dividend stocks to insulate your portfolio during all markets (but especially recessions), and growth stocks for long term gains.