Discovering promising companies while they're still small and growing rapidly can produce amazing long-term stock returns for investors who move quickly. Since 2004, stock picks from Motley Fool Hidden Gems have outperformed the broad-based S&P 500 stock market index, allowing members to profit from companies that have the potential to go on to become leading players in their industries. Now you can get access to this income investing service at a discounted price of as little as just $53 a year. Below, we'll give you a chance at a special discount to get in on Motley Fool Hidden Gems, but first, let's take a look at why the service deserves your attention.
Why thinking small can make your portfolio big
The small-cap stocks that Motley Fool Hidden Gems focuses on are promising for several reasons. Because the companies typically have short histories, the stocks often fly under the radar of investors who are used to looking at more well-established companies. In addition, their small size gives them plenty of room to grow, offering greater return potential over the long run than companies that have already become behemoths in the corporate world.
In particular, Hidden Gems likes to look at companies that have two key traits. First, they should have high-quality businesses and management teams that understand the full potential for the companies to grow and become a more important part of the industries in which they operate. At the same time, the ideal Hidden Gems candidate is a stock that either hasn't yet captured the attention of rank-and-file investors or has lost respect among those who do follow the stock. Many such stocks are simply businesses that haven't grown large enough to enter the public consciousness. Others are better-known but have fallen out of favor temporarily due to business setbacks or poor industry conditions.
Get the Motley Fool stock picks you want -- at a discount!
When you look at the track record that Motley Fool Hidden Gems has put together, you'll see how stocks with these criteria can produce extremely high returns over the long run. One of the keys to the service's success has been choosing and sticking with great companies that have risen to prominence in the business world.
One of the best examples of this philosophy in action is Under Armour (NYSE: UAA). When Hidden Gems recommended the stock in late 2009, the athletic apparel company was a tiny player in an industry dominated by much larger rivals. Yet strong leadership and ambitious strategic plans pushed Under Armour forward, achieving a foothold in athletic apparel and then moving into footwear, further accentuating its competitive presence. Now, Under Armour is a force to be reckoned with, and it has produced returns of more than 800% for members who followed the service's recommendation more than seven years ago.
Taking advantage of trends in the business world can also open up opportunities in small-cap stocks. In 2008, TransDigm Group (NYSE: TDG) was a small but successful company supplying components and parts for the aerospace industry. As demand for new aircraft rose, so did TransDigm's fortunes. This trend lifted many large-cap airline companies and aircraft manufacturers to solid performance, but few came close to matching TransDigm's total return of more than 1,200% over that time frame.
What your Hidden Gems discount will give you
When you sign up for Motley Fool Hidden Gems with this special offer, you'll get two new small-cap stock recommendations every month. In addition, you'll get the service's Best Buys Now list to help you identify the best opportunities to put new money to work in your portfolio. The Core Stocks list also gives new members a great starting point, naming the 10 stocks that Hidden Gems sees as the bedrock of its investing philosophy.
In addition to the monthly report, you'll get updates throughout the month on what's happening with your stocks. Online exclusives will give you member-only content that others won't see. You'll also get access to Motley Fool analysts and community members to discuss stock picks, and you'll even be able to track your own success with our scorecard tool.
Don't wait to capture the returns you deserve -- from Hidden Gems!
To get the small-cap stock picks that can deliver amazing long-term performance, don't wait another minute: join the Hidden Gems community today. By becoming a Hidden Gems member, you'll line up all the resources you'll need to up your investing game and make the most of the opportunities in the stock market for income-oriented investors. Click here to get your Motley Fool Hidden Gems discount special offer and make your portfolio work as hard as it can for you.
The Motley Fool owns shares of and recommends TransDigm Group and Under Armour (A Shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.