11 Potential Big Winners to Buy Right Now
The investing luminary Peter Lynch once said, "All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don't work out."
That's precisely our strategy in our real-money "10-Bagger Portfolio." So far, we've invested our money in 11 outstanding businesses. They may not all go on to become 10-baggers, but we're pretty confident that they'll perform extremely well over the next five years and beyond. Here is a brief summary on why we like each of our 11 holdings:
1.Denbury Resources.Denbury Resources is the vulture of the oil field, turning scavenging for older wells into solid returns and growing cash flows. We believe that long-term energy trends will favor this truly unique energy play.
2.Zipcar. Sustained profitability is just around the next turn for the leading car-sharing company. But you wouldn't know that by looking at the stock price. We're still confident in this one's multibagger potential over the long term, however.
3.Infinera (NAS: INFN) . Infinera's next-generation product, the DTN-X, has hit the marketplace. The technology will help networks meet the rising demand for data across the Internet and should help Infinera land some big customers such as Verizon or AT&T.
4.MAKO Surgical (NAS: MAKO) . The American Academy of Orthopaedic Surgeons expects knee replacement surgeries to grow from 700,000 today to more than 3 million by 2030. MAKO's robots will help surgeons get those patients back on their feet -- and put plenty of cash in shareholders' pockets.
5.InvenSense (NAS: INVN) . InvenSense designs micro-electro-mechanical systems for motion control in products such as electronic games and smartphones. iSuppli expects 1 billion devices will use MEMS technology by 2014. We expect InvenSense to have more than its fair share of the spoils.
6.LinkedIn. The professional networking site is changing the way people manage their careers and adding two new members each second. As its huge member base -- currently, 161 million members and growing -- becomes more and more engaged, it seems likely that LinkedIn will become one of the big winners of the future.
8.Google. Google is still the leader in search advertising, which generates billions of cash flow that the company is reinvesting in big projects like mobile search, social media, and payments. This large cap still has a lot of growth left in it, though it should also provide investors with some stability.
9.Apple. Apple continues to define what mobile computing looks like. That's great for the stock, but not so good for the competition. We see no reason why this won't be the first trillion-dollar company by market cap.
10.Facebook (NAS: FB) . Facebook has created a giant social media platform with more than 900 million users. Its hackers are developing new ways to monetize the network. There are a lot of doubters out there, but we see tremendous possibilities with this incredible platform.
11.Intel. Intel is still the leading chip maker in the world. And it's using that clout to go after mobile devices. We expect its dividend to grow very nicely over the next five years.
We have been carefully following the big trend toward greater mobile usage. By investing in Google and Apple, we decided to place bets on the leaders. And our investment in InvenSense, which supplies its motion-control technology to producers of smartphones and tablets, should also grow tremendously as the demand in this space intensifies.
Our analysts at the Fool have also been following the incredible revolution in mobile technology, too. To better prepare investors for this massive trend, The Motley Fool has released a free report named "The Next Trillion-Dollar Revolution" that details a very promising company that is poised to deliver solid returns in the future. This has been one of our most popular reports, and you can access it today by clicking here -- it's free.
The article 11 Potential Big Winners to Buy Right Now originally appeared on Fool.com.John Reeves owns shares of Google and Apple. David owns shares of Apple, Infinera, and InvenSense. You can follow them on Twitter @TenBaggers.The Motley Fool owns shares of all of the companies mentioned in this article. Motley Fool newsletter services have recommended buying shares of Infinera, Intel, LinkedIn, Apple, Zipcar, Google, and MAKO Surgical, as well as creating a bull call spread position on Apple. The Motley Fool has a disclosure policy.
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