Investing is a game of numbers. While the primary goal is to make money, the real goal is to invest money in a basket of stocks that is able to outpace the return of the overall market.
Finding stocks that can consistently produce slow and steady returns is a great long-term investing strategy, and poses low risk for investors, but sometimes that is not enough. For investors that want to boost their return, and seek out stocks poised to deliver oversized gains, you have to be willing to assume a heightened level of risk.
Risk is the name of the game for investors who want to find stocks for oversized gains, so it should not come as a surprise that each stock we will look at in this article comes with a level of risk.
Risk and reward go hand in hand, but we still have to be careful when picking stocks. It is OK to assume a little additional risk, but we still have to do our homework to make sure we are not simply throwing our money out the window.
I want to take a look at the total universe of stocks, and try to pinpoint five stocks that have the real potential for oversized gains, all of which are slightly risky, but none of which are a pure gamble.
Remember that these stocks each have their own risk, so do your own homework and decide for yourself if the risk is worth the potential big payday that these stocks may deliver.