Saddle up with these ‘Magnificent Seven’ stocks and gallop your way into wealth! If you’re like most people and think of the stock market like the Wild West, it’s time to assemble the best group of stocks that will lead you to wealth.
The industry coined the term “Magnificent Seven Stocks” for seven tech stocks, driving most of the growth for the stock market. These stocks include names you’re most likely familiar with:
· Apple (APPL)
· Tesla (TSLA)
· Nvidia (NVDA)
· Amazon (AMZN)
· Meta Platforms/Facebook (META)
· Microsoft (MSFT)
· Alphabet/Google (GOOGL)
Last year, in 2023, the NASDAQ 100 had an astonishing year with 55.1% growth—driven mainly by none other than these seven stocks. In fact, their market value is so big that they account for more than 40% market value of the entire stock market!
We all know the 2016 film Magnificent Seven, starring Denzel Washington. And with all the swagger and charisma those fearless cowboys had in the movie, these stocks are doing the same in the financial market.
We already spend our paychecks on their products. Now, it’s time to see why investing in them can build long-term wealth.
Get to Know the Magnificent Seven Stocks
Here’s an important piece of financial advice to always remember - only invest in what you know. So, when it comes to the Magnificent Seven Stocks, you’re probably using their products to read this article (I’m talking to you iPhone scrollers); you probably just checked the tracking on your Amazon package arriving today; and you just spent an hour this morning binge-scrolling their apps (yes, Facebook and Instagram are both owned by Meta).
Like the movie characters, they each play a role in why they’ve dominated their markets and reached such massive gains.
1. Apple (APPL) - The Leader
Every successful group needs a leader, and Apple (APPL) is the rightful owner of the title. Denzel Washington’s swagger and confidence as Sam Chisolm creating crafty, yet genius plans is the exact reason why having the latest iPhone causes such a frenzy in the marketplace. It’s who the tech industry turns to for the latest trends, attracts all the media headline attention for the next iPhone announcement, and makes us feel a sense of status compared to people with other brands.
If you’re part of the exclusive “blue bubble” group, you know exactly why Apple is one of the best-performing stocks in the market. Its return was 50% in 2023.
2. Tesla (TSLA) - The Charmer
Tesla is undoubtedly the most attractive of the Magnificent Seven Stocks. The futuristic-looking cars make everybody’s head turn—and it’s doing the same for investors in the stock market. Can you believe it has more than doubled in price in one year? If you invested at the beginning of 2023, you would have twice as much money by the end of the year.
With a CEO like Elon Musk, who spends his time sending people to Mars, and funny Twitter antics, how can you not fall in love with a stock doing so well?
3. Nvidia (NVDA) - The Sharpshooter
If you’re looking for a stock company with a singular focus on success, that’s Nvidia. It’s taken aim at the emerging Artificial Intelligence (AI) technology industry and hit the bullseye time after time.
Want to know the power of getting in on an industry in the early stages? Well, this stock grew 239% in just one year (2023)! If you invested just $100 in Nvidia (NVDA) at the start of 2023, it would be worth $339 in just 12 months!
We’re still in the early stages of AI, but Nvidia is leading the way for the industry. If you’re aiming for wealth, Nvidia shoots right for the top.
4. Amazon (AMZN) - The Tracker
Your package has been delivered! We’re all too familiar with notifications like this. But when you consider all the logistics required by Amazon to get the latest Stanley Cup Quencher from halfway across the country to our front door on the same day, you’ll see why they’re such a valuable member of the Magnificent Seven Stocks.
The Magnificent Seven has a designated ‘tracker’ to help understand the landscape and determine the best strategy for approaching it. Amazon plays this role perfectly by tracking consumer behavior and determining the best strategy for dominating the marketplace. Their tracking efforts led them right into a nearly 80% increase for the stock price in 2023.
5. Meta Platforms (META) - The Assassin
Even though Facebook evolved from the trendiest place to be into a place full of irrelevant post tag notifications and unreasonably affectionate comments from our aunts, it’s been secretly controlling everything we do on social media. If you use Facebook, Instagram, WhatsApp, or Threads, you’re the reason why the stock price surged more than 190% in 2023. It’s because they own them all!
Facebook changed its name to Meta Platforms (META), but rest assured that the Zuck still has significant influence over everything digital. Own the META stock, and he technically works for you.
6. Microsoft (MSFT) - The Outlaw
Having someone who’s “been there, done that” on the team can be a solid foundation for propelling new ideas and avoiding mistakes in the market. Microsoft has been around for almost half a century with nearly 40 years publicly traded on the stock market. It’s seen all the market cycles and navigated its way through our recent recessions. And the surprising thing, it’s still one of the best performing stocks of last year with 57% percent gains.
Microsoft truly lives life as the outlaw of the group that continues to hang toe-to-toe with the best of them.
7. Alphabet (GOOGL) - The Warrior
The Warrior is a trusted ally to the Magnificent Seven. This role is for one native to the current environment with a deep understanding of how it naturally works. Sound familiar? Google is the home of all information, and we couldn’t navigate online without it.
More than 80% of all internet searches are still on Google. And did you know they also own Youtube—with more than three billion searches every month it ranks as the second-largest search engine. These search engine powerhouses helped the parent company, Alphabet (GOOGL), achieve 58% stock growth in 2023.
Magnificent Seven Stock Performance in 2024
Keep in mind that past success doesn’t define future growth in the stock market. So, should you still invest in the Magnificent Seven Stocks or related Funds in 2024?
The short answer is yes. How these companies influence how we spend our paychecks and time is a good indication that they’re a good investment for your investment portfolio.
Here’s the current 2024 performance of the Magnificent Seven Stocks (January 2, 2024 - March 8, 2024):
The stock market is a long-term wealth-building strategy. There will be times when you’re up and times when you’re down. Past performance is no guarantee of future results. However historically, the overall trend is growth in the market, especially for tech stocks. Each of these Magnificent Seven stocks has become significantly more valuable over the last decade. Make sure you’re invested to take advantage of their future growth.
How to Invest in the Magnificent Seven Stocks and Funds
Ready to get started with adding the Magnificent Seven Stocks or related funds to your stock portfolio? Here are a few investment options to see what’s right for you.
1. Purchase shares of each individual stock. Look them up by their ticker symbols in your investment platform—Apple (APPL), Tesla (TSLA), Nvidia (NVDA), Amazon (AMZN), Meta Platforms/Facebook (META), Microsoft (MSFT), and Alphabet/Google (GOOGL)—and then purchase the amount of shares that is right for your risk tolerance.
2. Invest in index funds like the NASDAQ and S&P 500, which track the overall market growth, including the Magnificent Seven stocks. There are many other funds that have these seven stocks as part of its holdings.
Need help deciding on the best way to invest in the Magnificent Seven stocks or related funds? Click here to book a FREE consultation with a Paycheck to Wealth investment advisor.
Comments