Why Rule Breakers Dig Stocks With Multiple Futures
Different industries, different products, same shape: a company with several genuine paths forward, not just one.
Overview
Look back at the stocks that have delivered the biggest gains over the past decade -- including Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), and Axon Enterprise (NASDAQ:AXON) -- and a pattern emerges: None of them won by nailing one single business and sticking to it forever.
Different industries, different products, same shape: a company with several genuine paths forward, not just one.
Details
That shape has a name in David Gardner's Rule Breaker investing philosophy: "multiple futures." Motley Fool Chief Investment Officer Andy Cross once summed up the difference between David's approach and Warren Buffett's this way: Warren looks for companies with "one sure future" -- simple, predictable, forever businesses like insurance or candy -- while David looks for companies standing at a fork in the road with several plausible paths forward.
Source
Originally published at www.fool.com.