Stock picks for future millionaires only

There are always reasons to be wary when anyone offers you a chance to make money. The stock market happens to be one of the most sound means of investment available, but there are very serious risks. The most obvious way to reduce risk is to spread your investments out over as many stocks as possible, but there may be a better way. You can also reduce risk by spreading your investment out over as much time as possible.

We are talking here about investing not in the stock market, but through the stock market. We are talking about finding the companies that simply have the best chance of being far, far bigger in two, five, ten, or even twenty years. For that reason, we won’t be looking at trend lines, or analyst upgrades, or earnings surprises, only global trends and the companies poised to ride them.

Remember to think of these ideas as just that, ideas, and do your own research before investing.

Carter’s (CRI)

Carter’s sells children’s clothing through both Carter and Oshkosh chains. People keep having children, especially in the developing world, and people keep spending more and more money on children, especially in the developed world. Over time, Carter’s appears to be steadily increasing both its revenue and its operating margins. Taken together, that is a formula for extraordinarily high future profits.

CRI

Chart courtesy of www.stockcharts.com

Square (SQ)

SQ stock has been volatile since its IPO back in November, but the essential story remains unchanged. Credit card companies take too large a bite out payments, and while they have managed to make this bite largely invisible to consumers, it cuts deeply into the profits of many businesses, particularly those that operate on low margins to begin with. Square allows any mobile phone to become a credit card, and future upgrades will be powerful enough that anyone with a mobile phone will be able to make payroll for a small business.

SQ

Chart courtesy of www.stockcharts.com

GoPro (GPRO)

Once again, forget about the day to day ups and downs and focus on where this company is going. By now, you have seen videos made with GoPro cameras attached to drones. Well, GoPro can see where the money is, and they are cutting out the middleman. Details are sketchy at present, but GoPro will soon be releasing a drone that shoots video at 4K resolution, the Karma Quadcopter. GoPro hopes to make drone video available to every backyard hobbyist, and if the consequences include concerns over privacy, airspace, homeland security, etc., well, such concerns always arise when something truly game changing occurs.

GPRO

Chart courtesy of www.stockcharts.com

NVIDIA (NVDA)

NVIDIA still mostly makes GPUs, which are the chips that make computers able to render realistic looking 3D images. The company had hoped that its Tegra chip would become standard in mobile phones, but that never actually happened. Nonetheless, NVIDIA has continued working on the Tegra, and has already demonstrated that the chip is powerful enough to perform all the necessary calculations of a self-driving car. The self-driving car market is still a few years off, but things may be getting exciting at NVIDIA sooner than that, thanks to the companies ability to power virtual reality devices and, yes, drone aircraft.

NVDA

Chart courtesy of www.stockcharts.com

Arotech (ARTX)

Arotech is the smallest company on today’s list, but it works in an extremely promising industry: lithium battery power systems. At present, the company makes mostly highly specialized power systems for military, hospital, and homeland security markets, though it also makes products such as water-activated lifejacket lights for commercial marine and aviation markets. The incredible success of Tesla (sorry haters, it’s true) has caused many companies to reexamine lithium batteries, and where the technology was more or less static for many years, it is now advancing rapidly.

ARTX

Chart courtesy of www.stockcharts.com

Symbols: ARTX CRI GPRO NVDA SQ
Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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