This Approach Will Help You Find Stocks Ready To Explode | Summary and Q&A

TL;DR

This podcast episode discusses the tech revolution, including the growth of e-commerce, social networks, and cloud software. It also analyzes three current stocks that are benefiting from the tech revolution: MercadoLibre (MELI), Match.com (MTCH), and ServiceNow (NOW).

Key Insights

• ✊ The tech revolution, driven by exponential gains in processing power, is creating vast opportunities for growth companies and disrupting existing businesses.
• 🤳 The hierarchy of human needs, as defined by Maslow's theory, influences investment decisions, with a focus on industries related to physiological needs, safety, love and belonging, self-esteem, and self-actualization.
• 🥺 MercadoLibre is a leading e-commerce company in Latin America, benefiting from the booming e-commerce market in the region and its expansion into digital payments.
• 🙃 Match.com, owned by Interactive Corporation, is benefiting from the growing popularity of online dating sites, providing a superior solution to finding partners compared to traditional methods.
• 😶‍🌫️ ServiceNow is revolutionizing internal business operations through cloud software, helping companies become more efficient and agile while offering specialized solutions for various departments.

Transcript

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Questions & Answers

Q: How did Tom O'Halloran get into investing?

Tom O'Halloran transitioned from being a trial lawyer to working in venture capital before becoming hooked on growth investing. He later joined Lord Abbott, a firm with a strong growth investing culture.

Q: What mentors influenced Tom O'Halloran's investing career?

While Tom O'Halloran did not have a specific mentor, he gained inspiration from great investors like Stan Druckenmiller and William O'Neal, who combined growth investing with technical analysis.

Q: How does the tech revolution impact the stock market?

The tech revolution is expected to drive the stock market for the next two decades, with occasional bear markets. The revolution is enabling growth, lowering inflation rates, and creating numerous investment opportunities in sectors such as e-commerce, social networks, and cloud software.

Q: How does IBD's Big Picture play a role in Tom O'Halloran's investment strategy?

Tom O'Halloran incorporates IBD's Big Picture into his investment strategy by using it as a source of information on market trends, distribution days, and follow-through days. It helps him assess the overall health of the market and make informed investment decisions.

Summary & Key Takeaways

• Tom O'Halloran, a partner and portfolio manager of Lord Abbott, discusses his background in investing and how he became hooked on growth investing.

• Lord Abbott manages various funds, including micro-cap growth, small-cap growth, large-cap growth, and focused growth funds. The team focuses on fundamental analysis and investing in disruptive companies in consumer discretionary, healthcare, and technology sectors.

• The tech revolution is currently driving exponential growth in processing power, cloud software, e-commerce, social networks, and more. It is also fueling a boom in online dating sites and digital payments.