7 Stocks With Cosmic Potential - MOON SHOTS - Millionaire Maker

Summary

The speaker, with over 40 years of experience in the stock market, shares their strategy for making significant profits through identifying two key types of investments. The first involves finding and investing in 'depressed stocks' that are undervalued due to external factors like interest rates, inflation, or market shifts affecting sectors like EVs, PCs, and semiconductors. The speaker believes these stocks will rebound as market conditions improve. The second strategy focuses on investing in 'Big Tech' companies, such as Apple, Amazon, Google, Microsoft, and Meta, projecting substantial annualized returns based on historical performance, knowledge of their AI initiatives, and future earnings projections. The speaker also discusses 'Big AI' stocks like Nvidia, Micron, and SMCI, expecting high returns based on their earnings calls and future revenue forecasts. Additionally, they highlight the potential of stocks like AEHR, SKYW, UCUT, NVTS, and others that are driving change in their respective industries. The speaker emphasizes the importance of keeping up with daily market changes and adjusting investment strategies accordingly, using an Excel spreadsheet to track and project earnings for each company.

Takeaways

• 📈 **Identify Opportunities in Depressed Stocks**: Look for stocks that are currently depressed due to factors like interest rates, inflation, or sector-specific slowdowns like EVs or semiconductors.
• 🚀 **Invest in Big Tech for Consistent Returns**: Historically, big tech companies like Apple, Amazon, Google, Microsoft, and Meta have provided annualized returns of 25-35% over 5 years.
• 🧮 **Use Past Performance as a Guide**: Analyze the past performance and current projects of companies to predict future earnings and stock prices.
• 🔍 **Monitor Earnings and Revenue Projections**: Keep up-to-date with companies' earnings calls and projections to adjust your investment strategy accordingly.
• 💡 **Big AI Stocks Hold Promise**: Companies like Nvidia, Micron, and SMCI in the AI sector are expected to provide significant returns based on their future earnings and revenue.
• 📊 **Algorithmic Approach to Stock Valuation**: Use algorithms that consider revenues and earnings to predict future stock prices.
• 🌐 **Focus on Innovative Companies**: Invest in companies that are changing the world, such as those in drug discovery, synthetic biology, and advanced computing.
• 📉 **Avoid Companies Not Keeping Up with Inflation**: Companies whose revenues and earnings are not growing in line with inflation are likely to decline.
• 🔥 **Depressed Stocks Can Recover**: Stocks that are depressed due to external factors have the potential to rebound, offering significant returns when the market corrects.
• 📱 **Invest in Companies Driving Technological Shifts**: Look for companies that are at the forefront of technological changes, such as those providing infrastructure for AI and robotics in warehouses.
• 🔊 **Consider Voice Interaction and AI Software**: Companies like SoundHound, which are focused on voice interaction and AI-driven software, are positioned for growth as technology advances.

Q & A

What are the two main strategies the speaker uses to make big money in the stock market?

The speaker identifies two main strategies: finding depressed stocks that are undervalued for reasons outside of their control, and investing in big tech companies that have a history of providing significant annualized returns over the next 5 years.

How does the speaker determine the potential return on investment for big tech companies?

The speaker uses past performance, knowledge of current projects in AI, projected earnings between now and 2027, and the company's PE ratio to calculate potential returns.

What is the term the speaker uses to describe high-risk, high-reward investments in the stock market?

The speaker refers to these investments as 'moonshots'.

How does the speaker evaluate the potential growth of companies in the AI sector?

The speaker listens to their earnings calls, reviews their projected earnings and revenues, and uses an algorithm that considers both revenues and earnings to predict future stock prices.

What is the speaker's projected return for Nvidia over the next 2 and a half years?

The speaker expects Nvidia to provide a return of about 319% over the next 2 and a half years.

What does the speaker consider when identifying depressed stocks?

The speaker looks for stocks that are depressed due to factors outside of the company's control, such as economic conditions or industry slowdowns, and then analyzes past performance to predict future growth.

How does the speaker approach investing in companies that are changing the world's construction or operation?

The speaker invests in companies like Symbotic, which are revamping warehouses with robotics and AI, and projects their returns based on their innovative technology and market potential.

What is the speaker's projected return for SoundHound over the next 2 and a half years?

The speaker projects a return of about 268% for SoundHound over the next 2 and a half years.

What is the significance of gallium nitrate in the speaker's investment strategy?

Gallium nitrate is a material that serves as a substitute for silicon in semiconductors, reducing heat and energy requirements. The speaker sees potential in companies like NVTS that work with this material, especially with the development of new supercomputers by Nvidia.

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How does the speaker stay updated with the companies they invest in?

The speaker maintains an Excel spreadsheet where they update projected earnings for every company every quarter, allowing them to adjust their investment strategy as new information becomes available.

What is the speaker's view on Qualcomm's recent stock performance?

The speaker advises against buying Qualcomm despite its recent high, citing a decreasing growth rate in projected earnings and the importance of revenue growth keeping up with inflation.

What is the speaker's advice for investors regarding company revenues and inflation?

The speaker emphasizes that if a company's revenues are not keeping up with inflation, it is essentially a 'dying' company, and investors should look for companies that can maintain or exceed inflation rates in their growth.