It’s amazing what you can learn from spending the day with a fellow investor – especially when that someone is Louis Navellier, who’s been called “an icon among growth investors” by none other than The New York Times.
From the moment Louis shared how he got into this business, the synergy was palpable.
It started with an assignment almost 40 years ago during his days as a student at Cal State Hayward. The assignment: create a model portfolio that would mimic the performance of the S&P 500 index.
He didn’t do well on the assignment because he built one that could beat the benchmark – over and over again.
Louis got unprecedented access to Wells Fargo’s expensive and powerful mainframe computers to continue to build his stock selection models; hundreds of hours of research later, he isolated the key qualities that these super-performing stocks shared and developed a system for tracking them.
It was the foundation of the sophisticated algorithm he’s been using to deliver big-profit stock picks ever since.
When Andy and I first set out on our own path, an assignment during our stint at TD Ameritrade led to the epiphany-level discovery that inspired LikeFolio. Though I’ll admit, ours was a bit less traditional.
We weren’t creating a model of the S&P 500. We were uncovering an alternative yet incredibly powerful data source – social media – that, when aggregated in just the right way, could forecast company sales… and predict the market’s next big winners.
Where Louis leverages fundamentals and institutional buying pressure, we leverage “alt-data” and social buying pressure.
Parallel paths indeed, with a common thread: The “iron law” of the stock market.
Earnings and the “Iron Law”
The “iron law” says that stock price trends can diverge from earnings trends for a while, but over the long-term, if a company grows and grows the amount of cash it takes in, its share price is sure to head higher.
Louis uses that “iron law” to spot stocks with massive upside potential by focusing on the companies with massive revenue and earnings growth.
We use our consumer insights to trade the “iron law” of the stock market by spotting which companies are gaining (or losing) momentum on Main Street.
Louis is a true growth investor (and an icon at that), whereas my calling is in fast-cash trading.
Yet understanding that the major drivers of a stock’s prices are earnings (or the anticipation of them), and developing advanced algorithms that help us spot the opportunities earnings create, is our shared secret to unlocking profits in the market.
And, as it turns out, we share some big winners, too…
Winning Synergy, Put to Work
You know how the LikeFolio data engine turns hundreds of millions of social data points into proprietary demand and sentiment metrics to tell us when a stock could be ready for liftoff?
Louis’ system takes into account dozens of individual metrics on any given stock and distills it all into a simple composite grade – just like you’d get in school:
- A stock with the highest growth and business quality ratings gets an “A.”
- A stock with miserable ratings gets an “F.”
It didn’t take long for us to realize just how many winners we had in common.
Now, I can’t give away everything from our conversation because in truth, it was much more than a casual chat.
See, Louis and I put our winning synergy to work for a special event that goes live a week from today: The AI Earnings Predictor Summit, January 9, 2024, at 8:00 p.m. ET.
It’s free to attend, and we just opened sign-ups, so go here now to claim your seat.
Earnings season is just around the corner – the 10-week profit bonanza when publicly traded companies report their quarterly (and full-year) numbers, and stocks make some of the biggest moves we’ll see all year.
Join us on January 9 to find out how YOU can take full advantage.
➡️ RSVP here now to secure your spot. ⬅️
And stay tuned to this space – we’ll have much more earnings action to come…
Cheers,
Landon Swan
Founder, LikeFolio