By Matt McCallNov 20, 2019
We talk a lot here about getting into unstoppable and explosive trends early, while stock prices are still cheap and consumer sentiment is just beginning to stir.
This strategy is called “Hypergrowth Investing,” and it’s not something you’re going to see covered by your typical money manager.
That’s a shame, because it’s absolutely the best way to turn small amounts of money into life-changing wealth. Hypergrowth investing is how you make five, 10, even 50 times your money on a single stock.
Once you study stock market history, you see that those kinds of life-changing returns are actually quite common in businesses and industries that change the way we work and live.
Let me explain and share a few examples, including one hypergrowth trend I’m following very closely…
It’s the approach that gets you into massive stock market winners like Amazon (AMZN), which returned early investors a mind-blowing 86,000% from its IPO in 1997 to mid-2019.
From 2011 to 2019, electric vehicle sales in the U.S. soared 20-fold. Shareholders of top electric vehicle maker Tesla (TSLA) rode this boom to 1,200% gains.
From 2007 to 2016, the number of people using Netflix’s (NLFX) streaming service soared more than 10-fold. This growth allowed early Netflix investors to make a stunning 6,400%.
Incredible industry growth rates and incredible wealth creation like the kind I just described are behind the rise of a new class of ultra-successful, ultra-wealthy Americans.
The driver of this wealth are investments in industries and businesses in “hypergrowth” phase… industries growing 10-fold… 20-fold… and more than 100-fold larger.
The good news is, knowledge and access to industries in hypergrowth mode isn’t limited to the Silicon Valley elite.
In fact, I’m going to show you another one right now, and it’s one I discuss at more length in Investment Opportunities and Early Stage Investor.
The hypergrowth trend I have in mind for you today is genetic editing.
On Tuesday, one of my recommendations in the sector, CRISPR Therapeutics (CRSP) was up 17% thanks to fresh results from the first two patients treated with its gene-editing therapy, CTX001, for people suffering from severe hemoglobinopathies, or blood disorders. (Since my most recent recommended buy price, investors are up nearly 94% on the stock. Another of my gene editing recommendations was soaring this week as well.)
One patient with severe sickle cell disease – an extremely painful malady that cuts many peoples’ lives short – suffered seven vasco-occlusive crises per year before enrolling in the trial. After four months following an infusion of CTX001, the patient was free of these crises.
Another patient suffering from transfusion-dependent beta-thalassemia required the patient to undergo over 16 transfusions per year before the trial. At nine months after an infusion of CTX001, the patient has not required another transfusion.
This is still an early stage study – Phase 1/2 – and we’ll have to see how it progresses. But in my view, these early results are truly extraordinary.
They represent the potential of a game-changing medical technology to transform the way we look at and treat diseases going forward. There will be a before and an after here – life will never be the same.
The mapping of the human genome has led to amazing medical breakthroughs with the most important being the ability to actually change existing genes. In 2012, the technology known as CRISPR/Cas9 started to make headlines.
A few years later in 2015, Science Magazine referred to CRISPR as the “Breakthrough of the Year.” This was also around the time when companies in this sector, like CRSPR Therapeutics, began to raise big money and prepare for their upcoming IPOs.
According to the World Health Organization, there are 10,000 monogenic diseases. A monogenic disease is caused by a mutation in just one gene. Other monogenic diseases include cystic fibrosis, hemophilia, Huntington’s disease, and many others. Muscular dystrophy has also garnered a lot of attention when it comes to CRISPR because researchers have already been able to cure mice with the disease.
Through gene editing, the removal or repair of that one gene can essentially cure thousands of diseases. Today, about 95% of the 10,000 monogenic diseases go untreated, and yet one in every 100 newborns has some type of monogenic disease from birth. CRISPR technology could one day make it possible to cure newborns of any of the thousands of monogenic diseases.
Outside of the fact that gene editing is on track to save lives, there is also an exciting investment angle to the technology. Not only are you supporting the companies by investing in them, you are setting yourself up for what could be some of the biggest winners of your lifetime.
To show you what I mean, take a look at this chart showing the total addressable market of monogenic diseases in the United States and abroad.
The $75 billion number on the left is based on new diagnoses each year. What is even more astounding is the $2 trillion market of one-time addressable opportunities in people who are currently living with diagnosed diseases.
As you can see, the potential here is enormous, and based on my hypergrowth investing strategy, we’re just beginning to see what’s possible.
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt talks about cannabis stocks, which have been hit hard recently and are hitting new two-year lows. Is this a time to buy at a deep discount or have they all gone up in smoke? He also talks about a recent Chinese IPO in the U.S. that is rallying after reporting strong earnings. And finally, the show wraps up with Matt discussing three stocks in hot sectors that must be on your watchlist.
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