The 20 favorite stocks of the Multis
Hi friends
As you may know, I have a paid subscription service called Potential Multibaggers. (By the way, you can get a 20% discount AND a 2-week free trial if you follow this link).
A couple of weeks ago, I asked the paying members of Potential Multibaggers, we call ourselves Multis, what their top 3 favorite stocks were. More than 150 Multis voted.
I have ranked the stocks according to two methods: simple sum, where I just count the number of times a stock was mentioned and weighted sum, where I give three points to choice #1, two to choice #2 and 1 to stock #3.
Let me already tell you that the winner for both was the same.
Simple Sum
In general, it helps that the stock has gone up a lot recently. You can see that for example with Nvidia (NVDA). It's easier to love stocks that have gone up quite a bit recently.
But, the Multis are connaisseurs. A stock like The Trade Desk (TTD), which has not moved much lately, is also high on the list, winning the bronze medal in the Simple Sum ranking. Cloudflare (NET) takes silver here.
Next to the medals, we have Mercado Libre (MELI), Adyen (ADYEY), Nvidia (NVDA), Sea (SE), Upstart (UPST), Shopify (SHOP), Nu Holdings (NU) and Amazon (AMZN) in the top 10. Just to make sure, I don’t cover all of these in detail, but I do for many.
You can look at the other names on this list:
Weighted Sum
As I already said, the number one remains the same for both rankings: Crowdstrike. But in the weighted sum, Cloudflare drops from the second position to the 6th, as only 3 Multis put the stock on number one. Mercado Libre takes the silver medal here, far after Crowdstrike. The Trade Desk remains in the third place.
Adyen and Nvidia both score better in this ranking, coming in at #4 and #5. Sea ends at #7 in the weighted sum ranking. Upstart (UPST) goes down one place to 8. Nu remains at #9 but Microsoft, Tesla and Amazon jump over Shopify, which only ends at lucky number #13.
Take a look at the total ranking.
I was pleasantly surprised by a few stocks. Fine companies like ServiceNow (NOW), ASML (ASML), Constellation Software (CNSWF), and Berkshire Hathaway (BRK.A) (BRK.B) make the list, as do Enphase (ENPH) and Celsius (CELH), which ends at a strong 14th place. Palantir (PLTR) ends at #17.
Magnificent 7
If you look at the Magnificent 7, so Microsoft, Apple, Amazon, Google, Nvidia, Tesla and Meta, there's one clear loser: Alphabet/Google was only named once! This is the ranking for the number of mentions, so simple sum.
Nvidia is undoubtedly the clear leader, Amazon comes in as second, and Microsoft is third.
If we look at the weighted sum, we can see that Microsoft and Tesla jump over Amazon. Apple and Meta remain 5th and 6th.
Conclusion
I thought this was an interesting exercise and I think I will repeat this every year from now on, in the first weeks of January.
What would you change in this list? Let us know in the comments!
In the meantime, keep growing!