Three analysts walked into a bar. They recommended stocks with "long-term growth potential." The bartender asked how long. They said they'd get back to him in five to seven years pending quarterly reassessment.
Top Wall Street analysts have identified three stocks. Which three? Doesn't matter. Could be any three. The article won't tell you why these three instead of the other four thousand publicly traded companies. Just trust the process. These analysts went to good schools. They wear ties.
The thesis is beautiful in its circularity. Ignore the noise. Focus on the long term. The noise is every piece of information that might suggest you're wrong. The long term is the period during which you'll forget you ever made this trade.
Investors with a long-term horizon should look beyond ongoing noise. Ongoing noise includes earnings reports, management changes, sector rotation, geopolitical events, interest rate movements, and the actual business performance of the company. Look beyond all of it. Squint harder. See only the growth potential shimmering in the distance like a mirage made of compounded returns.
These stocks are well-positioned. Positioned where? In your portfolio, losing money in real time while you wait for the long term to arrive. The long term is always arriving. Never here. Always coming. Like your uncle who says he'll pay you back.
The analysts back these stocks. They back them the way you back into a parking space. Slowly. Uncertainly. With several corrections. Hoping nobody's watching.
Retail traders will read this headline and think they've discovered alpha. They'll buy at the top because the top is when articles get written. The analysts recommended these names six months ago to institutional clients. You're reading the press release for the exit liquidity.
Photo by Larry Nalzaro on Unsplash
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