Write about something I think is quite valuable.
Last week, I did something, and a friend said that if another company like Nvidia is born in the next ten years, it will most likely be in the S&P 500.
How can we find it in the S&P 500?
I think, referring to Nvidia, it should at least meet these two criteria.
1. Long-term ultra-high gross profit margin, at least 50%+ per year.
2. Long-term ultra-high revenue growth rate, with total revenue at least tripling in 5 years, and maintaining high growth year after year.
Based on these two criteria, we can filter out the vast majority of companies in the S&P 500,
but good companies are never cheap. Unless Trump continues to create negative factors.
Based on the idea that "good companies are not cheap," we add a third filtering condition considering future growth potential.
3. Long-term rapid stock price growth,
while having a market capitalization between 50 billion and 300 billion.
Based on these three criteria, I found a company I particularly like, CRWD.
Then, coincidentally, during those days, a similarly named company, CRWV, was on the rise, and after watching CRWV's gross profit margin and performance growth rate, I bought it at over 70 and found it quite satisfying when it reached 100 a few days later.
But that was just a coincidence.
If in the next ten years another company as great and impressive as Nvidia can emerge, it will very likely meet these three criteria and be among the S&P 500.