This Investing Advantage Could Be the Secret to Massive Wealth

Daily Trade

We sit on the verge of transformation.

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Right now, there are a handful of innovations in their early stages that will change our world in a way the internet did in the 1990s … the way railroads did in the 1800s … and the way the automobile did in the 1900s.

Informed investors stand to make gains similar to — possibly even larger than — those during the internet boom.

The reason I compare the Roaring 2020s to the Soaring 1990s is simple …

It’s the convergence of multiple innovations all at once.

Back in the 1990s, it wasn’t just a computer revolution. It was computers PLUS the internet PLUS microprocessors PLUS cellular phones.

Each innovation helped drive the growth of others.

Now we have 5G, artificial intelligence, precision medicine, the Internet of Things, virtual and augmented reality, biotech, blockchain, and more. This convergence is enabling new businesses to operate with unprecedented efficiency and productivity … and allowing them to create wealth faster than ever before.

It’s all about technologies piled on top of technologies. Innovation on top of innovation. And as a result, profits on top of profits

When hypergrowth trends converged in the 1990s, top companies didn’t grow at a linear pace.

That would be 1, followed by 2, followed by 3, 4, 5 …

Instead they grew at exponential rates: 1, 2, then 4, 8, 16, 32, 64, and so on …

Exponential progress is progress that multiplies in power and scope with each step. Profits also multiply.

Here’s an old legend that helps illustrate the power of exponential growth …

Hundreds of years ago, a king invited a traveler to play a game of chess.

The king loved chess and very much wanted a challenge. He told the traveler that he could name his reward if he won the game.

In response, the traveler modestly asked for some rice. He asked the king to give him a single grain of rice on the first square of the chessboard and then give him double the amount — two grains — and place it on the next square. Then double that amount — four grains — and keep doubling for each square on the chessboard.

The king lost the game. And being a man of his word, he called for a bag of rice. The king placed one grain on one square, two grains on the next one, four grains on the next one, eight grains on the next one, and so on.

So far, so good.

But by the 16th square, the numbers were getting very large and the king very uneasy. He owed the traveler 32,868 grains of rice on that square.

Soon, the king realized that because of the exponential growth, he could not fulfill his promise. On the 21st square, he would need to put down over 1,000,000 grains of rice. By the 31st square, he would need to put down over one billion grains of rice.

And finally, on the 64th square, the king would need to put down 18,000,000,000,000,000,000 grains of rice! More rice than the kingdom could produce in over 100 years.

That is the power of exponential progress.

The way to achieve exponential profit growth is to invest early in smaller stocks that still have that kind of potential.

That’s how the biggest gains were made in legendary wealth-builders like Microsoft (NASDAQ:MSFT), up 342,183%.

Now, at a $1.6 trillion market cap, exponential growth for Microsoft is almost mathematically impossible. It will take Microsoft years to double its revenues or profits.

But back when Microsoft was valued at $1 billion … or even $100 million … it was an outstanding place to put your money.

Same with Cisco (NASDAQ:CSCO), which is up 65,850%.

Walmart (NYSE:WMT), up 683,950%.

Adobe (NASDAQ:ADBE), up 317,406%.

And on and on.

My advice is to think big. Anyone who focuses on one theme — no matter how massive it may be — is missing the boat.

Yes, 5G and biotech will both be huge. But by working together, innovation upon innovation, the gains will be truly epic.

Everyone knows Amazon (NASDAQ:AMZN). It’s a monster stock market winner — up more than 11,000% since 2000. But not everyone recognizes WHY it’s up so much. It’s the synergies of top-notch web services PLUS powerful cloud storage PLUS phenomenal logistics PLUS world-class artificial intelligence.

Knowing this difference between linear growth and exponential growth instantly sets you apart from your fellow investors and gives you a huge advantage. It can literally make you millions of dollars over the coming years.

When it comes to extreme wealth creation, few endeavors can compare to being an owner of a small company that grows large.

At this particular moment in history, there are dozens of stocks with that kind of potential all around us right now.

Why not try to find and own them?

On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now

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