The New Potential Multibaggers Pick Is Here!
Hi Multis
It's been a while since I launched a new Potential Multibaggers pick. I've been picking Potential Multibaggers since May 2017 and I've noticed that I've become stricter in my criteria over time.
But I also have to acknowledge that there will always be risks. For every investment and even more for Potential Multibaggers.
Because of 2022 and the butchering in growth stocks back then, and especially the many that didn't recover from the fastest rise in interest rates ever, risks have become much more important for me.
When I look at the companies that have done the best (think Shopify, Nu Bank, Duolingo, Cloudflare, CrowdStrike, etc.), one noticeable thing sets them apart from the companies that didn't make it: the people. The best companies have exceptional CEOs.
But exceptional CEOs are often not easy to find. It often takes time to get to know them and to see how good they are.
In that sense, this new Potential Multibagger is a classic one. Yes, it's the company, it's the huge total addressable market, it's a technology advantage that not everybody sees, it's riding a long-term trend, but especially, I liked this CEO from the start and he saw something that few saw that early.
Moreover, just like Tobi Lütke started Shopify to power his own online snowboard shop, this CEO had a personal interest in starting his company and it was even a much better one than that of Tobi Lütke.
Just like a typical Potential Multibagger, the stock has been on a very volatile trajectory. These are the drawdowns. As you can see, the stock is currently 44% below its recent high just two months ago.
Before we start, I want to point out that have an advantage over you. That advantage is that I have already done the research and I have not just done that in the last few weeks but for months already, and much more intensely in the last few weeks. After all, this stock has been on my Stocks On My Radar list since mid-2024.
That means that I'm probably in a different place than you are right now when it comes to research and conviction. That means it may take a while before you are convinced about this pick. That's OK. I always scale into positions over time, so I will also do that with the new Potential Multibaggers pick.
Of course, there's always the possibility that the company will fail for one reason or another. It's essential to have the conviction to hold on if a stock has a drop, and there will be many reasons why our stocks will see big drops from time to time. Some of those reasons will sound very convincing. That's why it may be wise to either wait for the next article or to only buy a small starter position.
But enough introduction. Let's go to the new pick.
Up to now, I have avoided naming it but here it is.
The new Potential Multibaggers is...