Right then. Let’s talk about acquiring a bit of future. Not the sort you can bottle, mind you, but the kind that arrives in the form of rapidly multiplying numbers on a screen. Everyone desires a portfolio that doesn’t just exist but actively grows. It’s a basic principle of… well, everything, really. We’ll be examining a few promising ventures, comparing their performance to the rather pedestrian growth of the Standard & Poor’s Index – which, let’s be honest, is mostly just counting beans.1
| Equity | 5-Year Avg. Annual Return | 10-Year Avg. Annual Return | 15-Year Avg. Annual Return |
|---|---|---|---|
| Nvidia (NVDA 2.21%) | 67.87% | 76.81% | 47.10% |
| Palantir Technologies (PLTR +1.77%) | 30.22% | N/A | N/A |
| MercadoLibre (MELI 0.93%) | 1.62% | 37.26% | 25.35% |
| Vanguard Information Technology ETF (VGT +0.16%) | 15.70% | 24.24% | 18.72% |
| Vanguard S&P 500 ETF (VOO +0.06%) | 13.82% | 16.09% | 13.77% |
1. Nvidia
One does not simply avoid mentioning Nvidia when discussing exponential growth. It’s rather like trying to ignore a particularly loud dragon. The company is currently riding the crest of the Artificial Intelligence wave, churning out the silicon brains that power these new digital entities. Billions are being invested in AI infrastructure, and Nvidia is, shall we say, well-positioned to benefit. The future, it seems, will be powered by their chips, and possibly a worrying amount of electricity.2
Their latest creation, the Rubin chip, is designed to facilitate AI inference – essentially, allowing these digital minds to think (or at least, convincingly simulate it). And the Blackwell chip, already a success, is being superseded. They are, commendably, striving to stay ahead of the curve, which is more than can be said for most of us. What’s more, Nvidia’s stock appears, dare I say it, reasonably priced. A forward price-to-earnings ratio of 24.3 is positively modest, especially when compared to its five-year average of 37.4. Wall Street agrees, with most analysts predicting a substantial upside.
2. Palantir Technologies
Palantir specializes in the art of extracting meaning from chaos – or, as they call it, AI-based data mining and analytics. They are, notably, a major supplier to the U.S. government, which suggests they are quite good at finding things out. Recent revenue growth is impressive – up 70% year-over-year – and their customer base is expanding at a rate of 34%. A healthy sign, unless one suspects they are selling information to both sides.3
Some investors swear by the “Rule of 40,” which adds a company’s revenue growth to its adjusted operating margin. Anything above 40 is considered favorable. Palantir recently clocked in at a staggering 127%. This suggests they are squeezing a remarkable amount of profit from every dollar of sales. However, they are facing challenges in expanding internationally, apparently lacking the manpower to capitalize on opportunities. Their CEO, Alex Karp, has a rather unique approach to talent acquisition – he prefers a “dense culture,” meaning they don’t do acquisitions. A refreshing stance, if somewhat impractical.
Palantir’s shares have historically traded at exorbitant levels, but they’ve recently experienced a correction, making them slightly more accessible. However, with a price-to-sales ratio of 80, they remain priced for perfection – a dangerous position to be in.
3. MercadoLibre
MercadoLibre is a dominant force in Latin American e-commerce and fintech. They boast 115 million unique buyers and 72 million active fintech users. Net revenue is up 39% year-over-year, with a net profit margin of 5.7%. Remarkably, they’ve achieved revenue growth above 30% for 27 consecutive quarters. A testament to their ability to navigate the complexities of the region.
The stock hasn’t risen much this year, partly due to competition from Sea Limited’s Shopee marketplace in Brazil. However, Latin America is a rapidly growing e-commerce market, expected to grow 1.5 times faster than the global average. There’s room for multiple players, provided they can adapt to the local conditions. MercadoLibre appears well-positioned to benefit, with an attractively priced stock – a forward P/E of 31, well below its five-year average of 64.
4. Vanguard Information Technology ETF
Lastly, we have an exchange-traded fund – a convenient way to diversify one’s holdings. This particular ETF includes many of the “Magnificent Seven” stocks, such as Microsoft, Apple, and, of course, Nvidia. It offers exposure to a broad range of growth stocks with a single investment.
With all of these ventures, it’s important to remember that markets are fickle. Fast-growing stocks can experience sharp pullbacks when the market corrects. Be prepared for volatility and adopt a long-term perspective. Patience, after all, is a virtue… and occasionally, a necessity.
1
The Standard & Poor’s Index. A perfectly respectable collection of companies, but lacking in imagination.
2
One suspects Nvidia’s electricity bill is quite substantial. Perhaps they should invest in renewable energy… or a dragon.
3
One hopes Palantir is not selling information to both sides. The sheer unfairness of it all!
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2026-02-16 05:43