“As technology continues to evolve, the financial markets will continue to transform. Investors who embrace these advancements and use them to their advantage will be able to reap the benefits of the new investment landscape. In the future, the financial markets will be unrecognizable from the ones we know today, and technology will be the driving force behind the changes. The potential of these advancements in the financial markets is immense, and it is likely to continue to disrupt and transform the investment landscape in the years to come.”
How Technology Is Transforming the Investment Landscape, Forbes, Feb 14, 2023
All of that change notwithstanding, there is one constant that will always be present in future searches for profitable investments. That constant metric is that when companies consistently grow their revenues, their stock market prices will increase.
That metric is the cornerstone of our investment strategy at UV Metrics.
That investment strategy has produced the following investment performances of our EGS (Extraordinary Growth Stocks) Model Portfolio, a portfolio almost entirely focused on stocks that are either enabling or benefiting from The Digital Transformation.
Here’s how the EGS model portfolio has performed thus far in 2023:
And here’s how this model portfolio has performed since its launch:
Let’s use the following chart to illustrate.
Clearly, the most growth occurs in the Growth phase. However, that also typically represents the greatest risk for most investors.
To reduce that risk – and to enable Members to acquire a stock early in a company’s growth cycle – we have developed a proprietary method for tracking a company’s revenue growth. That tracking process is updated every quarter during which stocks remain in our model portfolio.
Most importantly, this tracking process also enables us to discover mature companies that experience a Life cycle extension in their revenue growth. This renaissance might be precipitated by new products, new markets, new industry trends or simply new management. In the exciting era of Digital Transformation, extraordinary revenue growth can occur to any company, large or small – at any time.
It also serves the dual purpose of alerting us to remove a stock if revenues inexplicably decline . . . or to maintain our position in a stock into the Life cycle extension period for as long as significant revenue growth continues.
There is more to our due diligence than simply tracking quarterly revenue growth. Among other metrics, here are some of our areas of interest:
Total Addressable Market – This forecast provides assurance that future revenue growth can be sustained.
Unique Competitive Advantage: We want to determine if the company has a moat that will protect it from competition.
Management competencies: It’s important that a company’s management team has proven success in growing companies. The “been there, done that” factor provides reassurance.
So, why should you consider subscribing to my service?
There are three reasons why you might want to consider subscribing to my service by becoming a Member:
First, a learning experience: Over the past five-years I’ve searched the Internet for credible sources of information relating to the Digital Transformation. Many of those sources offer email updates which I’ve subscribed to. I receive hundreds of those updates daily, and those which are significant and relevant – and many are neither – are shared with Members via emails.
Second, a time-saver for you. As mentioned above, you will not have to search the Internet for credible sources of information, nor will you have to sift through hundreds of daily emails to determine which are significant and relevant.
Third, a money-saver for you. I spend hundreds of dollars every month for subscriptions to proven and frequently profitable sources of investment research.
When any of those ideas qualify for my Quarterly Revenue Growth metrics and become Picks, my explanation for those Picks is shared immediately via emails with Members.
As you look at the performance charts above, keep in mind that most professional investment management firms – including hedge funds and mutual funds – strive to match or beat the performance of the S&P 500 . . . and, according to a September 9, 2023 article in The Wall Street Journal, 90% fail to do so.
These charts are updated at the end of each month.