In his article " The Market's 10 Best Stocks Revisited," 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 are not huge companies today. Why not? This chart should explain. Look how large each of these solid businesses would become if they increased just 10 times in value over the next decade:
Company
Current Market Cap (Billions)
10-Bagger Market Cap (Trillions)
Qualcomm (Nasdaq: QCOM)
$76
$0.8
General Electric (NYSE: GE)
$155
$1.5
Pfizer (NYSE: PFE)
$109
$1.1
Apple (Nasdaq: AAPL)
Goldman Sachs (NYSE: GS)
$85
$0.9
United Parcel Services (NYSE: UPS)
$54
$0.5
AT&T (NYSE: T) Continued...
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