Last week, we finally saw some volatility rattle the markets for the first time since early June. And it looks like today will be a bumpy ride as well.
Now, I like trading stocks and options for fast profits in the short-term as much as the next guy…
But the long-term investor in me also likes to embrace the volatility by loading up on some of my favorite long-term companies as well.
Similar to the way Warren Buffett invests, I place big bets on a few companies that I think are going to be thriving for the next 10, 20, 30+ years.
On any pullback, I’m confident buying more shares on sale because my level of conviction in these companies is extremely high. And I know that over the long run, my dollar cost averaging strategy will compound the returns for me.
The best part is, I won’t be paying any capital gains taxes along the way since I really don’t ever plan on selling…
Buy This Tech Stock Hand Over Fist
NVIDIA Corp (NASDAQ: NVDA) is one of my all-time top performing stocks.
Over the last five years, the company has surged 2,850%.
Now, since I’ve been dollar cost averaging over the years, I haven’t reaped that kind of profit on my entire position.
But I have been making boatload of money every time the stock has pulled back.
In total, I’m up about 900% – which isn’t bad for just five years… And I’m certainly excited for what the future may bring.
You Can Also Follow the This Simple NVDA Strategy
Last week, NVIDIA hit another all-time high of $590 per share.
And just three trading days later, the stock is down 20%, below $470.
While this swift move to the downside is clearly scaring most investors (hence the selling), it’s doing the opposite for me – I couldn’t be more excited.
You see, I actually root for some of my favorite stocks to go down from time to time… That way I can buy more shares at a discount.
All I do is set an alert on my computer to tell me when my stocks are down 10%, 20%, 30% etc. from their all-time highs.
I don’t buy all of them on drops like this, but in the case of NVDA – it’s an absolute no-brainer.
Lead by CEO and founder Jensen Huang, NVIDIA is the leading designer of graphics processing units that enhance the experience on computing platforms.
The firm's chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems.
In recent years, NVIDIA has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.
Basically, the entire modern world operates on the products NVIDIA builds and sells.
The company’s earnings reports speak for themselves…
Since 1999, Huang and his team have beat consensus analyst estimates nearly 90% of the time. In other words, the stock pops 9 out of every 10 earnings reports.
Also, every time the stock has pulled back 15-20% or more in the last five years, it has come roaring back an average of 63%.