Like all things in life, when it comes to investing, hindsight is always 20/20. It is easy to look at the chart of a stock like Amazon.com’s (AMZN) over the last five years and second guess why we didn’t put all our eggs in that basket but seeing into the future is much more complex.
There are no crystal balls on Wall Street, and any of a number of things can lead a stock into a long-term bullish run just as easy as it can lead to a sharp selloff that a stock is never able to recover from.
While it is impossible to know what the next five years holds, there are ways to put yourself in the best possible position to make sure you can outperform the market and hold positions in your portfolios that you will be glad you had the foresight to own.
The one thing that Wall Street loves more than anything is growth. In order to ensure a successful portfolio, you HAVE to make sure that you put your money to work in companies that have not only shown an ability to grow their business but have what it takes to continue posting strong growth numbers down the road. As long as a company is able to grow Wall Street will remain upbeat and allow shares to keep pace the overall market if not outperform.
Finding sector leaders is another great approach since they tend to fend off competition better and have greater economy of scales to withstand possible sector weakness.
Here are five stocks that look attractive now and you may wish you owned five years from now.