Since I wrote the introductory piece for the next 25 stocks for the NEXT 25 years, I have received some pretty interesting emails from you -- the readers. It seems many of you would like to participate in this exercise. I would love to have you join in. No one has the market cornered on good (or great) ideas. Please send in your thoughts and stock suggestions for the ultimate list.
I should tell you I have my 25 stock ideas for the NEXT 25 years researched and ready to reveal. However, six of them are barely hanging on the list ... I am still having trouble becoming convinced. I like the companies, but remember, these have to be very special. The remaining 19? I've arrived at reasonable certainty these have a chance to be big, relevant game-changers over the next couple of decades. Doesn't mean there aren't better ideas from you the readers...even the sacred 19 are vulnerable!!
The power of an idea is a remarkable phenomenon to watch and absorb. Think back for a moment ... go back only 15 years, to 1992. How many incredible companies either did not exist or were just a twinkle in the eye of some venture capital firm? These are companies that are now part of our everyday lives and have become part of our shared vocabulary. "Google" was something toddlers did to the aaawh of parents and grandparents; now grandpa's is saying "leave me alone, I am Googling for lyrics to that Barry Manilow song -- and did anybody see my iPod?"
"Amazon" was a river in the Brazilian jungles. I still have visions of Tarzan swinging on the vines to rescue Jane (who was always perfectly made up). Amazon now evokes a vision of simplicity and convenience for books, music, movie, electronics, etc. buyers. It did not exist in 1992, nor did Google. First time I kissed my high school sweetheart I remember screaming Yahoo!!! Her father did not appreciate it, as I woke him up from a sound sleep. I still cannot be seen in that state! But "Yahoo!" now is part of our vocabulary with a whole new meaning.
Together, these three companies have come from valueless, rarely-used dictionary entries to a combined value today of $215 billion in market capitalization ... yet they were not public or even existent in 1992. The power of an idea.
The beauty of the stock market is its eventual fairness and reflection of true value. Markets love innovators and creators of new technologies, medicines or even comfortable shoes. The markets will let a company go through its growing pains, its re-engineering plans, its re-restructurings, and at the end of the day, price it fairly and accordingly. The markets love companies who can transform the way we eat, sleep, drink and just about anything else we as humans beings do. Where there's a will there's a way.
As we embark on this fun, yet hopefully thought-provoking and profitable exercise these next three weeks, some of the giants of tomorrow are not public yet, or even imagined. But we gotta deal with what we can deal with!! The NEXT 25 must already be public companies. Also, we will be market capitalization-sensitive as well. A $20 billion market cap company may be a great investment for sure, but can it be among the top 25 for the NEXT 25 years? A $200-300 million market cap company that grows to become $50 billion -- now that's a winner!!
So, let the games begin. Tomorrow I will write up for you my first stock idea for the NEXT 25 years. A hint ... it is in the medical field and certainly a life-saver and a game-changer for (hopefully) millions of us ... stay tuned ...
Georges Yared is the CIO of Yared Investment Research where he explores more growth stock ideas.
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