In this article, we reviewed the 10 best growth stocks for the next 10 years with at least 30% revenue growth according to billionaire Ken Fisher’s stock portfolio. You can skip our detailed discussion about these companies, and go directly to the 5 Best Growth Stocks for the Next 10 Years.
Billionaire Ken Fisher, who said in a YouTube video that 2020 could be the last year of the current bull-run, has been betting big on growth stocks in 2021. Despite the fact that growth stocks underperformed as compared to value stocks since November last year, stronger revenue growth prospects hint that the downtrend is temporary. It’s also true that several companies that saw massive revenue growth last year could fail to sustain that trend in a post-pandemic situation. However, pure growth stocks that have the potential to sustain 30% or more revenue growth are highly likely to regain investors’ attention.
With $159 billion in assets under management, Fisher Asset Management held $141 billion in a 13F portfolio, with a massive exposure towards the fastest growing sectors and companies. Information technology stocks represent 26% of portfolio weighting while communications and consumer discretionary stocks weighted around 13% and 10.8% of the overall portfolio. At the end of the first quarter, Fisher Asset Management held a position in 973 stocks, with a top ten holding concentration of around 30%. Billionaire Ken Fisher doesn’t believe in putting all eggs in one basket. He likes to make a well-diversified portfolio according to market trends. His Q1 portfolio includes several big tech names including Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Alibaba Group Holding Limited (NYSE: BABA)
Fisher’s hedge fund’s stake in the financial sector, which accounted for over 30% of the portfolio in 2019, trimmed to only 19% at the end of the first quarter of 2021. Ken Fisher is one of the most intelligent investors with the ability to predict the market cycles and sector leadership rotation. His strategy of slashing exposure towards the financial sector helped in saving billions of dollars in losses during the pandemic year. The financial sector was among the worst performers in 2020.
On the other hand, his strategy of injecting billions of dollars of funds into tech stocks like Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Alibaba Group Holding Limited (NYSE: BABA) helped in generating big gains during the pandemic year. Moreover, his strategy of buying the dip in energy stocks contributed strongly to the overall performance in the past two quarters, thanks to the oil price stabilization and economic recovery. The communications sector, which represents a major chunk of growth stocks, is among Ken Fisher’s favorite areas of investments. He added significantly to stocks from the communications sector in the past couple of years.
Ken Fisher of Fisher Asset Management
While Ken Fisher’s reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let’s start digging into the 10 best growth stocks for the next 10 years. We picked these stocks from Ken Fisher’s Q1 portfolio. Each stock in this list has a revenue growth of over 30%.
Best Growth Stocks for the Next 10 Years
10. Advanced Micro Devices, Inc. (NASDAQ: AMD)
The chipmaker Advanced Micro Devices, Inc. (NASDAQ: AMD) is a member of billionaire Ken Fisher’s portfolio since the beginning of last year. Despite an 11% year-to-date share price decline, AMD stock is still up 50% in the last twelve months. However, its share price is likely to bounce back in the days ahead amid robust revenue growth trends. The company posted 92% year-over-year revenue growth in the latest quarter. The stock ranks 10th in our list of best growth stocks for the next 10 years according to billionaire Ken Fisher.
Artisan Partners Limited Partnership, a high value-added investment management firm, mentioned a few stocks including Advanced Micro Devices in the investor letter. Here is what Artisan Partners Limited Partnership stated:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
Like Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Alibaba Group Holding Limited (NYSE: BABA), Advanced Micro Devices, Inc. (NASDAQ: AMD) is one of the best stocks to buy according to billionaire Ken Fisher.
9. Facebook, Inc. (NASDAQ: FB)
The social media giant Facebook, Inc. (NASDAQ: FB) is one of the fastest-growing companies considering its 47% year-over-year revenue growth in the latest quarter, thanks to a growth in ads revenues. The company expects to extend the revenue growth momentum ahead amid economic reopening which will further fuel ads revenue. Moreover, shares of the social media giant rallied 20% since the beginning of this year amid strong revenue growth trends. The billionaire investor Ken Fisher lifted his position in Facebook, Inc. (NASDAQ: FB) by 2% to 4.75 million shares. The stock ranks 9th in our list of best growth stocks for the next 10 years according to billionaire Ken Fisher.
Distillate Capital, an investment management firm, highlighted a few stocks including Facebook, Inc. (NASDAQ: FB) in the investor letter. Here is what Distillate Capital stated:
“Facebook has come in and out of the portfolio before and did so this quarter on the back of substantial improvement in projected free cash flows such that its valuation now meets the criteria for inclusion.”
8. Freeport-McMoRan Inc. (NYSE: FCX)
The share price of Freeport-McMoRan Inc. (NYSE: FCX) saw a stunning 360% rally in the past twelve months, driven by improving commodity prices and robust revenue growth. In addition to share price growth, the strong financial backing has also been helping the company to return cash to investors in the form of dividends. In the March quarter, the company generated 74% year-over-year revenue growth.
Freeport-McMoRan Inc. (NYSE: FCX) has experienced an increase in hedge fund interest in recent months. It was in 68 hedge funds’ portfolios at the end of March compared to 61 positions in the previous quarter.
7. The Home Depot, Inc. (NYSE: HD)
Billionaire Ken Fisher raised his stake in The Home Depot, Inc. (NYSE: HD) during the first quarter by 2% to just over 7 million shares, accounting for 1.55% of the overall portfolio. The company has been experiencing robust growth in revenue and other financial ratios, supported by economic activities and higher consumer spending. The stock ranks 7th in our list of best growth stocks for the next 10 years according to billionaire Ken Fisher.
Meanwhile, investors are pouring funds into HD stock amid its financial performance and improving outlook, resulting in a share price gain of 20% since the beginning of this year. Besides share price gains, The Home Depot offers a dividend yield of around 2%. Like Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Alibaba Group Holding Limited (NYSE: BABA), The Home Depot, Inc. (NYSE: HD) is one of the best stocks to buy according to billionaire Ken Fisher.
Ensemble Capital, an investment management firm, mentioned a few stocks including The Home Depot in the investor letter. Here is what Ensemble Capital stated about returns from HD stock:
“Notable contributors to the Fund’s returns this quarter (included) Home Depot. Home Depot (8.9% weight in the Fund) continued to benefit from a red-hot housing and home improvement market, delivering record financial performance in 2020. As a high return on invested capital business, any step-up in growth results in considerable shareholder value creation. While 2021 comparable sales may not yield impressive headline results, we believe there are several secular tailwinds supporting continued housing investment, including millennials entering prime household formation/peak earnings years, relatively low-interest rates, and government policies.”
6. ASML Holding N.V. (NASDAQ: ASML)
The manufacturer and developer of advanced semiconductor equipment ASML Holding N.V. (NASDAQ: ASML) is among the growth stocks that are outshining value stocks in 2021, driven by almost 100% year-over-year revenue growth in the latest quarter. Shares of ASML Holding grew 38% so far in 2021, extending twelve-month gains to 111%. Ken Fisher first initiated a position in ASML Holdings in 2009 and raised his position by 2% to 3.96 million shares in the latest quarter. Like Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Alibaba Group Holding Limited (NYSE: BABA), ASML is one of the best stocks to buy in Ken Fisher’s portfolio. The stock ranks 6th in our list of best growth stocks for the next 10 years according to billionaire Ken Fisher.
ASML Holding N.V. has experienced an increase in hedge fund interest lately. ASML Holding N.V. was in 35 hedge funds’ portfolios at the end of the March quarter of 2021 compared to 30 positions in the prior quarter.
