Can This Portfolio Crush the Market Over the Next 5 Years?
Individual investors can either go the passive route, in which case they're likely to match the performance of the S&P 500 or Nasdaq Compositive Index, or they can choose to actively pick stocks. The latter choice is more difficult to successfully execute, but for someone who thinks he or she possesses the necessary skills, it might make sense.
For investors looking to beat the market over the next five years, I think it can be a simple course of action. By investing in the following three positions in equal weights, this goal might be achievable. To be clear, concentrating into just three assets isn't for the faint of heart, especially if you lack conviction. But because of outsize pessimism rattling markets right now, tech-minded investors can focus on buying only the best assets out there at steep discounts.
First on this list is Amazon (NASDAQ: AMZN). According to Statista, Amazon commands 38% of total e-commerce spending in the U.S. With $80.1 billion of 2022 sales, Amazon Web Services (AWS) is the leading cloud-computing business in the world. In addition, Amazon posted 23% year-over-year growth in ad revenue in the fourth quarter, another promising segment. Amazon's focus on being the most customer-centric company has resulted in its dominating other tech subsectors.
Source Fool.com
