Breathless bull runs–of the sort you witnessed last year–don’t come too often. Even a passive investor who had invested in the stock indices would have more than doubled his money, riding that upsurge; and an astute stock picker would have done rather better for himself. However, that money multiplying bull now looks like it’s out of breath; and given today’s relatively higher valuations and the scaled-back prospects for economic growth, the beast isn’t likely to tear away in a hurry.
But does that mean there aren’t double-your-money opportunities in this market? Not at all, but to gain entry to that investor heaven, you must get stock-specific and look beyond the frontliners. There are exciting stories among second-rung stocks the market hasn’t yet caught on to. Big idea stories that have the potential to double your investment in three years–a compounded annual return of 24 per cent–without asking you to take unusual amounts of risk.