For most of us, encouraging a helpless person to win is so much more fun than supporting the favorite. For many investors, the same thinking drives their investment decisions.
The opposite investment works for many investors, but nest egg cultivation doesn’t have to be that difficult. This is because the best stocks tend to reach new all-time highs again and again on their way to life-changing gains.
These three values are close to their historical high prices. Here’s why you shouldn’t let this stop you from adding them to a diversified portfolio as soon as possible.
1. Align technology
Alignment technology (NASDAQ: ALGN) shares have risen around 31% this year and just set a new high water mark last week. Right now, the stock is just a couple of percentage points below its recent high.
Shares of Align technology have been growing at the same time as sales of its Invisalign brand of clear aligners. Recently, the company reported $ 1 billion in a single quarter for the first time in its history.
Last year, stocks dwindled because the general shift to online medical services seemed like a death knell for a product that requires personal interaction with dentists and orthodontists. Instead of migrating to SmileDirectClubDental light surgery, however, seems like most people interested in straightening their teeth are willing to spend a little more to get help from a professional.
Align Technology’s largest operation benefits from economies of scale, but its main advantage is the large network of associate dentists who have many incentives to recommend Invisalign to their patients at the point of care. With no competition to get in the way, there is still plenty of room to scale this stock.
Facebook (NASDAQ: FB) the action has doubled in the last two years. The king of social media actions is on the brink of the all-time high for the thousandth time and it looks like it may continue to rise in the clouds.
Facebook shares have been rising again lately because it’s clear appleThe recent transparency of ad tracking initiative did not have the negative impact that investors expected. Second-quarter sales soared 56% year-over-year, and profits rose 20% more than the average estimate by Wall Street analysts.
Facebook’s investments in virtual reality haven’t resulted in a big uptake of its Oculus headphones so far, but COVID-19 is driving a shift toward more effective communication methods. If the “metaverse” that Mark Zuckerberg predicts really materializes, the company’s strong virtual reality investments today will pay off many times over.
In the first half of 2021, Facebook generated a gigantic operating profit of $ 24 billion and the company is about to record $ 25 billion more in the second half. This is more than enough to allow the company to invest in virtual reality and other future initiatives without breaking the bank.
3. Intuitive surgery
Like Facebook, Intuitive surgical‘s (NASDAQ: ISRG) the action has doubled in the last two years. The shares reached a new peak several times in August and are currently trading at an all-time high.
The actions of the pioneer of robot-assisted surgery have recently increased in anticipation of a 3 by 1 split that is likely to occur in September. According to the figures, the division of shares should make no difference in the valuation of a company, but the popular ones usually increase.
The key reason to buy Intuitive Surgical at its peak is the easily defensible position of the company in the niche it created. Medtronic i Johnson & Johnson they are giants of medical devices with their own robotics-assisted surgical systems, but there aren’t many incentives to compete for specific procedures that Intuitive Surgical has already tied. Any rival trying to compete with Intuitive Surgical for a specific procedure will need to convince hospitals to invest in recycling heaps.
Every day, thousands of the company’s da Vinci systems generate more clinical evidence that reinforces its position as a standard used to perform specific procedures, such as hernia repair. This virtuous cycle should allow the price of Intuitive Surgical shares to rise enough to require another division.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool advisory service. We are motley! Questioning an investment thesis (even one’s own) helps us reflect critically on investment and make decisions that help us be smarter, happier, and richer.