So for fun, I will present each company “forecasted” growth.
Now you may choose to ignore graphs presented.
Anyway Picked 3 names even though there is plenty of other Hyper growth or Mega caps etc.
This is not bull bear case, just 2 hypothetic scenarios , then it is up to you to deicide which one of them is realistic or maybe you have your own hypothesis.
So lets start with Alphabetical order.
Lets say it grows 35% for next 5 years period.
It would produce 14% Annual rate of return, or 126% Return to you investment on 31.12.2026. Not bad eh?
Let’s go to scenario where it grows “just” 20% annually. (Take into account that PE used depends on Annual growth, so in case 20% it will be PE 20, aka return to mean)
In this scenario, returns don’t look so promising. -19% returns in total on 31.12.2026…
So let’s go to our 2nd candidate.
1st scenario let’s say BABA grows 35%…
If indeed BABA would grow at such pace, investor would earn whooping 587% on his investment at 31.3.2027, or 37% annually. Doesn’t seem to shabby?
Now it is question, does one think it is realistic for BABA to grow at such pace?
Ok, so 2nd scenario for BABA, 20% growth.
If the growth is kept at 20%, still BABA would return lovely 145% on your base investment by 31.03.2027. Still doesn’t seem so bad, rite?
Now to the final candidate.
The infamous TSLA.
Lets give TSLA a bit bump, so lets presume Musk Inc. grows 65% annually.
So in scenario where TSLA is ultra dominant market force, grows 65%, you invest at today bargain price, you get 126% on your investment by 31.12.2026, not bad?
Now that is if you believe TSLA will grow at such pace, maybe you think it will grow even faster?
2nd Scenario, a “bearish” TSLA outlook, grows “just” 25%.
Now on this scenario, investor doesn’t have fun, you get -62% on your investment by 2027… Ouch…
Let’s go crazy with TSLA, fan favorite stock. 3rd Scenario, TSLATOPIA.
So TSLA grows 100% YoY for 5.
Then investor at today price would get smashing monster market beating 529% return to his investment by 2027…
Seems like obvious choice, doesn’t it?
So what is your pick?!