The Pareto Principle suggests that 80% of a portfolio's growth will be powered by just 20% of its holdings. In other words, a small number of investments will probably have an outsized impact on your total returns. That makes sense: Stocks can only fall 100%, but they can grow many times over in value, so any well-diversified portfolio is likely to have a few big winners.
Unfortunately, there is no surefire way to spot these monster stocks , but it helps to invest in companies with big market opportunities, strong competitive positions, and healthy top-line growth. Cloudflare (NYSE: NET) and Latch (NASDAQ: LTCH) check all three of those boxes.
Here's why both of these stocks could grow many times over in the next decade.
For further details see:
2 Smart Stocks That Could Turn $200,000 Into $1 Million by 2031