The Motley Fool's Weekly Editors' Picks
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
4 Top 10-Bagger Stock Prospects
Every investor is searching for 10-baggers, right? Those portfolio-plumpers whose share prices rise to 10 times what you paid? Well, Fool analyst Jeremy Bowman came up with four stocks that have 10-bagger potential. Far apart on the "wow" spectrum, he has SodaStream (NAS: SODA) , which sells the tools needed to make carbonated soft drinks at home, and 3D Systems (NYS: DDD) , which deals in 3-D printing, in which a machine lays down layers of material to create objects like replacement parts or dental implants.
Some 60% of SodaStream's shares are sold short, meaning those investors are banking on its share price to fall, but Jeremy thinks the company is here to stay and able to grow. "Founded in 1991, the company has established a strong foothold in Europe, gaining as much as 20% market penetration in Sweden, and is expanding into Latin America and Asia, as well as building on its initial push in the U.S.," Jeremy wrote, noting a 50% jump in earnings last quarter and a forward P/E of just 14.
3D Systems, on the other hand, has a P/E of 66, and shares have nearly tripled since the beginning of the year, Jeremy wrote, but he thinks there's plenty of room for the technology and the company to grow.
Read the article for more potential 10-bagger insight.
A Foolish Interview With Michael Mauboussin
Motley Fool co-founder Tom Gardner interviewed Michael J. Mauboussin, chief investment strategist at Legg Mason (NYS: LM) and adjunct professor of finance at the Columbia Business School. The interview is full of great insight for investors. Here's just one bit of Mauboussin talking about keeping a decision-making journal, an idea from Nobel Prize winner Daniel Kahneman:
The key to doing this is that it prevents something called hindsight bias, which is no matter what happens in the world. We tend to look back on our decision-making process, and we tilt it in a way that looks more favorable to us, right? So we have a bias to explain what has happened.
When you've got a decision-making journal, it gives you accurate and honest feedback of what you were thinking at that time. And so there can be situations, by the way, you buy a stock and it goes up, but it goes up for reasons very different than what you thought was going to happen. And having that feedback in a way to almost check yourself periodically is extremely valuable. So that's, I think, a very inexpensive -- it's actually not super-time-consuming, but a very, very valuable way of giving yourself essential feedback, because our minds won't do it normally.
Click here to listen to the interview or read a transcript.
The Great White Shark in This Real-Money Portfolio
Fool analyst Alyce Lomax manages a "prosocial" portfolio for Fool.com; she invests in a socially responsible way. This week she took time to explain why Amazon.com (NAS: AMZN) fits the bill even though it might seem a bit antisocial given the way it edges out competitors. Even Netflix (NAS: NFLX) is feeling the pinch as Amazon offers streamed entertainment, including a recent licensing deal with cable channel Epix, with which Netflix previously had an exclusive agreement. "Netflix has been losing its edge with content providers in the streaming video space, leaving it less and less relevant to subscribers as DVDs go the way of the dodo," Alyce wrote.
"Some disruptive companies may sound like mega-destroyers, but they're pushing our society forward when it comes to innovation and even creative destruction," she wrote. "The best businesses keep innovating to keep their outlook robust and customers happy. ... Innovation does drive economic growth and opportunities, even if we don't see how right at this moment."
Read the article to see whether Amazon is right for your portfolio.
Click here to get access to a premium Motley Fool report on the key opportunities and risks facing Amazon. This brand-new report breaks everything down for you in easy-to-follow, plain English.
The article The Motley Fool's Weekly Editors' Picks originally appeared on Fool.com.Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article. The Motley Fool owns shares of Netflix, Amazon.com, and SodaStream International.Motley Fool newsletter serviceshave recommended buying shares of Netflix, SodaStream International, Amazon.com, and 3D Systems and creating a bear put ladder position in Netflix.We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.
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