In his article "The Market's 10 Best Stocks," my colleague Tim Hanson pointed out the benefits of searching for the next multibagger success stories among the smallest of companies.
And I agree with him: The best stocks of the next decade will not be huge companies. Why not? This chart should explain why. Look how large each of these solid businesses would become if they increased 10 times in value over the next decade:
Company
Market Cap (Billions)
10-Bagger Market Cap (Trillions)
Johnson & Johnson (NYSE: JNJ)
$154
$1.5
Eli Lilly (NYSE: LLY)
$40
$0.4
JPMorgan Chase (NYSE: JPM)
$137
$1.4
Chevron (NYSE: CVX)
$139
Wells Fargo (NYSE: WFC)
$108
$1.1
3M (NYSE: MMM)
$41 Continued...
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