If you've ever read Mary Shelley's Frankenstein, you know that the mad doctor, Victor Frankenstein, created his creature through human parts born of others. Shelley never really says so, but I'd like to believe that the bad doctor intended to stitch together the very best parts he could find to create the ideal human being.
Of course, Victor's experiment went horribly wrong, costing him and those he loved their lives. That's way it goes with us flesh-and-blood humans.
Not so with stocks. With them, all you can lose is your portfolio. But that, too, can be a messy and haunting experience, especially when tech stocks are involved. That's why today, in an effort to fight the fright for tech investors everywhere, I propose to cut and paste together four certificates to create the ideal tech stock, one capable of quite literally crushing the market for years to come.
Some of the best investing advice I ever received was from Motley Fool Rule Breakers captain David Gardner. He said that I should be so confident in the CEOs of the stocks I own that I'd be willing to walk away for 10 years and let my positions be as they are.
Sound crazy? It is, to a degree. "Buy and forget" as an investing strategy is about as vulnerable as a teenager in a morgue at midnight approaching a barely cracked door. And it's not like ignoring his gruesome creation helped Victor. Instead, it led to the death of his nephew, whom Frankenstein murdered for revenge.
But the point remains: superior management with a talent for vision and creativity often precedes superior returns. That's certainly been true with Apple (Nasdaq: AAPL ) under CEO Steve Jobs, which has been a 14-bagger since his return in 1997.
Frankenstein's monster had to endure in the wilderness when Victor shunned him. He had nothing; observation and perseverance were his only friends. And the locals hunted him for his terrifying appearance. Yet the lonely, angry, and poorly outfitted monster outlasted them all in Shelley's classic work.
Remind you of anyone? How about Larry Ellison, CEO of Oracle (Nasdaq: ORCL ) ? Some consider him a monster, such as Motley Fool CAPS player KahunaCFA, who wrote (in his bearish response to my bullish selection of the stock):
I have met, and greatly dislike, "Leisure Suit Larry."
He's hardly alone. Former PeopleSoft CEO Craig Conway warred with Ellison over his buyout bid for the company. But Ellison ultimately prevailed, despite objections from the Justice Department.
Perhaps most famously, Frankenstein's monster featured enormous size and superhuman strength. Movies have made hay of this legend for decades. That's why the late, great Fred Gwynne had to wear elevator shoes to play Frankenstein monster knock-off Herman Munster in the TV series The Munsters.
For our ideal tech stock, size and strength equals a durable competitive advantage. There's none better than Microsoft's (Nasdaq: MSFT ) Windows operating system, which runs 90% of the world computers. 'Nuff said.
Finally, we should credit Frankenstein's monster for a resourcefulness that took him as far as the Arctic Circle in Shelley's book. It also nourished him. The monster survives early on by secretly performing a series of favors for a nearby family. They leave him food and other offerings in return because they believe they've been blessed by a guardian angel of sorts. (Until they find out differently, of course.)
Here, such cunning equals excellence in research and development. And none is better at that than IBM (NYSE: IBM ) , which has earned more patents than any other American firm in each of the last 13 years, and which has become so good at R&D that it seeks to outsource it to earn extra moola.
So, there you have it. Four stocks, stitched together. Quite a beauty, don't you think? Now all we need is a stormy night and a bolt of electricity to bring your portfolio to life!
Or not. This ultimate growth stock doesn't exist, but one like it could someday. That's what David and his team at Rule Breakers are looking for; the small-cap son of our stock market Frankenstein. So far, that journey has been fruitful, with three three-baggers in the portfolio within two years. Want to learn more? Click here to get 30 days of free access.
And, of course, Happy Halloween!
Microsoft is anInside Valueselection.
Fool contributor Tim FrankenBeyers, ranked 1,330 out of 11,654 inMotley Fool CAPS, actually plans to dress as a Fool for Halloween. Tim owns shares of Oracle. Get the skinny on all of the stocks in Tim's portfolio by checking his Foolprofile.
The Motley Ghoul's Tricks or Treats represents the opinions of each Fool only and should in no way be taken as the opinion of either The Motley Fool, Inc. or any company in question, or as representative of anyone or anything other than that specific Fool's thoughts. So do your homework, and review The Motley Fool's disclosure policy.