Editor’s Note: Chief Investment Strategist Alexander Green says the Magnificent Seven have had their run – and the next generation of market leaders is already here.
In the article below, Alex reveals why these Next Magnificent Seven tech stocks are crushing the market… beating the original Mag 7 by 304% and the S&P 500 by 450% so far this year.
Alex and Chief Income Strategist Marc Lichtenfeld also just unveiled a brand-new list of “Micro Mag 7” stocks – tiny companies poised to soar as America builds out its AI future.
Click here before Monday to watch the replay of their special Micro Mag 7 Summit.
– James Ogletree, Senior Managing Editor
Forty years ago, I took my first job on Wall Street, working as a stockbroker at an international investment firm.
Some of our stock recommendations worked out well. And some of them didn’t work out at all.
That is always the case, no matter where you get your investment advice.
However, I’ve never forgotten a conversation I had with one of my early clients.
I had recommended a tech stock that quickly tripled in value, although he took a pass on it when I originally recommended it.
In hindsight, he sincerely believed that it was my fault.
“Alex, when you find something this good, you really have to emphasize the upside potential. If I had understood that, I would have taken a big position.”
Some will hear this and say it’s just sour grapes. (Another “coulda-woulda-shoulda.”)
But I took his message to heart.
Whenever I thoroughly research a company and have great conviction in its potential, I try to make that clear when I recommend it.
I do that – in part – because our hundreds of thousands of Members of The Oxford Club are a smart bunch.
They understand that no one truly knows what the economy will do… or what inflation will be… or whether interest rates will rise or fall.
No one has a crystal ball. And I waste no time pretending that I do.
I talk about the positives and negatives in the market, the headwinds… and the tailwinds.
But with a few exceptions – on those rare occasions when investors are seized by abject pessimism or unbridled optimism – my market approach is consistent: “short-term neutral and long-term bullish.”
Why? Any investor worth his salt knows that we can always get a bolt out of the blue in the short term. (Consider 9/11 or COVID-19.)
But take a look at any long-term chart of the market. You’ll see that the line goes up, and to the right.
That’s why we’re long-term bullish.
Over time, successful companies increase their sales and profits. And their share prices rise to reflect that.
That’s why investing in an S&P 500 fund has been rewarding for patient investors.
It’s been so rewarding, in fact, that the only reason to invest in individual stocks is if you sincerely believe you can do substantially better.
That’s not easy. But the facts show that The Oxford Club has done this for more than two decades now.
Last year, for example, we invited new Members to join us by offering them a new portfolio called “The Next Magnificent Seven.”
At the time, the tech stocks in the original Magnificent Seven – Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla – had become wildly popular.
So popular, in fact, that I called this “the most crowded trade on the planet.”
Traders and investors everywhere felt they had to own these seven stocks.
Why? Because those were precisely the ones they wish they’d owned earlier.
I said last year – and I’ll repeat it now – that those are dominant companies that should prosper for years to come.
But it is not just unlikely that they will do as well in the future as they have in the past.
It is completely impossible. Trust me: That will not happen in your lifetime or mine.
How can I be so confident? Well, let’s use reason – rather than emotion – to view the potential here. As I write…
- Apple is up over 80,000% since 2004
- Alphabet (formerly Google) is up over 12,000% since 2004
- Amazon is up 8,000% since 2004
- Meta Platforms (formerly Facebook) is up over 1,800% since 2012
- Microsoft is up over 2,900% since 2004
- Tesla is up over 38,000% since 2010
- Nvidia is up over 103,000% since 2004.
Spectacular returns… all of them.
So who’s to say this can’t possibly happen to these stocks all over again? Me, for one.
Nvidia has a market cap of approximately $4.4 trillion. It is a fast-growing company that makes the super-powerful chips that the burgeoning AI industry depends on. It’s a great firm.
However, it’s worth noting that there has never in the history of the world been a company worth $5 trillion, although I have no doubt that one day several will exceed that number.
Let’s set aside the 80,000% that Apple and 103,000% Nvidia have returned over the past two decades.
What are the chances of either stock rising even 10-fold from here to a market cap of $40 trillion?
Bear in mind, the entire U.S. economy last year was less than $30 trillion.
For a single company’s shares to be worth 133% of the nation’s total annual output would be not just “quite a feat.”
It would be impossible.
Yet there are many smaller companies that could rise 10-fold or more. And no doubt many of them will.
Some, in fact, will even match or exceed the past returns of The Magnificent Seven.
Given this reality, I told Oxford Club Members – and prospective Members – that they would be far better off investing in “The Next Mag Seven” rather than the current seven.
The same way Wayne Gretzky insisted that he became the NHL’s all-time leading scorer not by chasing after the puck but rather by skating “to where the puck is going to be.”
How has this strategy worked out? You can be the judge.
All told, so far this year they’ve beaten the original Mag 7 by 304% and the S&P 500 by 450%.
But now, there’s an entirely new presentation that I hosted with Marc Lichtenfeld to inform Members on seven tiny stocks that we believe could soar.
It’s called the Micro Mag 7 Summit, and you can tune in right here.
