Studying past top-performing stocks can increase odds of success for investors.

From Nasdaq: 2024-07-08 15:00:00

Legendary speculator Jesse Livermore once said, “Whatever happens in the stock market today has happened before and will happen again.” Investors can increase their odds of success by studying past stock market winners. The top performing stocks of the past 20 years share common attributes like stellar fundamentals, price action, and sector innovation.

Tech stocks like Nvidia, Apple, and Amazon dominate the list of top performers. These winning stocks often come from strong industry groups, like semiconductors. Companies that disrupt industries, innovate, and build a strong moat like Apple tend to become true market leaders with triple-digit earnings growth.

Investors should focus on stocks with strong earnings growth and positive momentum. The Zacks Rank is a useful tool for identifying potential winning stocks, along with watching for institutional backing. Understanding the common traits of successful stocks can lead investors to future market leaders.



Read more at Nasdaq: Investing Lessons: The 10 Best Stocks of the Past 20 Years