Neel Dhingra (YouTube creator) explains a simple contrarian-style heuristic for finding stocks with potential for massive returns: pick companies that provoke extreme, polarized debates between bulls and bears. He argues that widely-agreed-upon winners (e.g., Apple) are unlikely to deliver explosive returns, while contentious names (examples: Tesla, Amazon historically) can produce very large gains if the bull case materializes. He cites Zillow as a contemporary example he’s personally bullish on and suggests this approach can uncover 5x–10x+ opportunities.
So you ever wonder how to find the next stock that's going to give you a massive return? Well, today we're going to tell you exactly how to find that 1000% return stock. Stay tuned. So when you want to find the next stock that's going to give you a massive return, you have to find a stock where there's people on both sides. The more extreme the better. So you got to find people that are super bearish, that have something really negative to say about the company. And then conversely, you got to find people on the bullish side and that think that this is the best thing ever. When you get that type of debate going, that's where you zero in. So before we get started, guys, go ahead and hit that thumbs up button. This really helps my content get shown to more people and helps my channel grow. And if you haven't done so already, consider subscribing because I'm going to be putting out a lot more content just like this video today. So I've been trading stocks and options for the past decade and I've learned a few things over those years. So when you pick a stock that everybody agrees on, let's take Apple Computer for example, right? Everybody loves Apple. All the analyst recommendations are buy or strong buy. If you talk to your friends, family, coworkers, everybody agrees that Apple is a great stock to own for the long term. That's all true, right? But the thing is, when everybody agrees on a stock, you're not going to get that massive upside. It may be a great investment, but at the same time it's not going to generate huge returns. So for a long term hold, that's great. But if you want to find a stock that's actually going to explode or have huge upside, you got to find something where there's this debate going on. What I mean by that. Let's look at Tesla, for example. So with Tesla, a couple years ago, there were people that said that Tesla is going to go out of business. So you got people on this side of the argument that are shorting the stock. They're saying the company is not worth anywhere near what it's trading at. It shouldn't be worth this much. It's just a car company. If you look at it compared to other car companies, it's, it's overpriced, overhyped, they're not going to be able to deliver on the promise and they're not going to be able to meet the requirements for capital. So they're basically making a bet that this company is going to go down or even out of business. It's an extreme debate. On the other side, you have the bulls on the stock which are saying that this is much more than a car company. This is the future. Autonomous driving, battery technology, you know, semi trucks, all the stuff that they're going to be doing in the future, and that this is the future of automobiles and that they have such a market lead ahead of all the other competitors that nobody's going to be able to touch them as far as other e driving electronic vehicles. Right? So in that case, you have this debate going on here, there. Now you make a bet one way or the other, and then if you're on the right side of that debate, you get huge upside. So if you look at the chart over the last couple of years, there's been massive volatility in the stock. And if you're a bull on that stock, you get a huge return, right? You get paid for that risk. So another stock that this occurred with years ago was Amazon, for example. Amazon, they said that the margins are too low. Retail is a dime business. Amazon's losing money quarter after quarter. You know, this is not sustainable, and the stock is way too overvalued. Then that's on one side, the bear side. On the bull side, you have people saying that this is the future. It's Amazon Web services. They can turn up their margins, they're going to take over everything. And, you know, this stock is just early days. So if you look at the chart over a long period of time, you get that huge upside again because of this debate that's on both sides. So you have to pick a stock with that debate. And I know many people will say, well, Neil, these stocks don't exist anymore. Right. You know, those are previous examples. What do I buy now? Well, one stock that I'm doing this with today is Zillow, for example. Zillow. There are people that say Zillow is not going to be able to get traction in the real estate market. They are losing money, they are overpriced, and this stock is going to go down. There's a huge debate going on with the Bears and the bulls on the bull side. They're saying, I would say, and I would agree, that Zillow is going to take a fraction of the real estate market, that eventually, in years to come, people are actually going to transact homes on Zillow. It's going to be a platform where you could list your home for sale and somebody could buy it, where they could facilitate the entire transaction. They're already getting little bits of traction in certain markets with this. And I think that, you know, there's more to come there. So I'm betting on the bullish side. What happens there if they end up getting, you know, the traction that I think they will over the next three to five years, you could see a five times return, a 500% return. You could see a thousand percent return. That's how you get massive return, is you pick a stock where there's a huge debate going on. There are plenty more stocks like this. You know, we could go through examples for days, but if you look through, you will find more and more of these examples. And then you could pick a stock where you can get a really big return. And that's how to invest to get massive returns.
