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Hi Partner 👋
I hope you are doing well.
Today it’s time to talk about growth investing.
In today’s interview you’ll learn how Kris was able to generate a +8,720% (!) return on Nvidia and a +2,668% return on Shopify.
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Do you want to know what the best growth stocks are now?
Discover Kris’ favorite growth stocks right now here:
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Who is Kris Heyndrikx?
Kris Heyndrikx is one of my best friends.
We talk about business, life and investing every single day.
Kris is best known for his Twitter Account From Growth To Value (120.000 followers) and his investment newsletter Potential Multibaggers.
His newsletter is focused on growth investing.
Kris bought:
Shopify ($SHOP) for $5.6 (current stock price: $155)
Cloudflare ($NET) for $39 (current stock price: $310)
Crowdstrike ($CWRD) for $24.53 (current stock price: $225)
On top of that he also identified Nvidia ($NVDA) early.
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Let’s now dive into this two-part interview!
How would you define your investment strategy?
Kris: I look for high-quality disruptive businesses that have the potential to go 10x or more over the next 10 years. Of course, these are not so easy to find. But when I find them, I do the hardest thing in investing: I hold them as long as they execute.
By the way, I’m pretty happy with a 5x return too. A 5x means you generate an average return of 17% per year for 10 years. A 10x means you generate a return of 26% per year for 10 years. This math shows you don’t have to gamble or trade to get fantastic results. You need to find a truly great company early and then give it the time to keep growing. Sometimes, you are surprised to the upside. I wouldn’t have expected Shopify to go more than 20x in the 9 years since I bought it.
Your Twitter handle is ‘From Growth To Value’. Could you elaborate on this?
Kris: My Twitter/X name is basically my entire philosophy in four words. I try to buy growth stocks and hold them so long that they become value stocks. When I started writing about stocks, in February 2016, Amazon ($AMZN) and Netflix ($NFLX) were still seen as high-growth stocks and way too expensive. Today, they are considered growth at a reasonable price. The next step is a value stock, like Google ($GOOG) was when everyone thought AI would kill it. Because I follow AI closely, I bought a position in Google at that point in time.
That journey, from growth to value, is where you can find life-changing returns. If you can hold a great stock for 30 years, the returns can become almost absurd. I know someone who invested about $1,500 in Netflix when he got out of college. He was thrilled when he could sell at a 40% profit the next year. That’s what most investors are happy with. But had he simply held his Netflix shares, that small position would be worth around $1.5 million today, and that’s with Netflix down almost 50% from its top right now. That’s the difference between OK returns and life-changing returns. That’s why I want to buy growth stocks and hold them as long as the fundamentals stay intact.