5 Best Stocks From Wall Street Gurus Whose Investments Tripled in the 2010s
Dennis Lynch and Kristin Heugh are involved with successful funds and recommend these 5 stocks for this decade, according to Business Insider.
Lynch's Insight fund is the best-performing US large-cap stock fund of the past decade, with an annual return of 20.8 percent. Heugh's International Opportunity Fund has brought in a 12.9 percent annual return. They have both had an outstanding year so far.
When Lynch was asked about the FANG stocks he said, "it's likely that their upside potential is somewhat capped in relation to some of the other ideas that are now larger positions in the portfolio." Heugh stated that their portfolios are looking into "the smaller, mid-sized software companies."
They expect these 5 companies to bring in huge returns over the next decade.
Coupa provides business software and has performed well for Lynch over the past two years. Wall Street is also bullish on the stock, but Lynch believes the potential for this stock has barely been tapped. "They're currently dominant in what's called business-spend management, but there's an increasing opportunity for them to leverage that position to become a leader in B2B payments, which is bigger than the consumer markets that the Visas and Mastercards tend to benefit from," he said. "They're kind of in pole position to take advantage of that."
Meituan is the leader of food delivery in China, but it also offers restaurant and hotel reservations at other businesses that have drawn in users. "They're really becoming a dominant internet platform within China," Meugh said. "They're the No. 1 player with about 65% market share, and that is a business that when you get scale can be incredibly profitable."
Uber hasn't been the best performing stock since its IPO. Lynch and Heugh both have positions in the company, but the stock hasn't brought in gains to their winnings funds. However, both remain optimistic about Uber's future. "They're doing a very good job in terms of rationalizing their business," Heugh said. He added that its Uber Eats business has done well identifying good regions and getting out of bad ones. "They're trying to allocate their capital in a very productive way," he said.
Lynch added Shopify to Insight's portfolio in 2018 and the price is up over 600 percent. E-commerce has seen significant growth in recent years and Lynch has increased his position. "They continue to create new products for their end users," he said. "We think that that's creating a large endgame potential down the road."
Heugh believes that economic growth in India and the expanding middle class in Asia will help grow HDFC Bank. "The private banks, of which they're one, are gaining a lot of market share, and that market share could go up substantially over the next five to 10 years," he said. "There's a huge opportunity for the sector."