10 Years Later: 5 Stocks to Feed the Bear

Core Insights - The podcast revisits a five-stock sampler from February 10, 2016, titled "Five Stocks to Feed the Bear," to evaluate performance over the past decade against the S&P 500, which returned 274.3% during that period [1][6][32] - The analysis includes lessons learned from the performance of these stocks, emphasizing the importance of long-term investing and the impact of market conditions on stock performance [3][34] Stock Performance Summary Stock 1: Carter's (Ticker: CRI) - Carter's stock price decreased from $85.04 to $38.07, resulting in a 55% decline, significantly underperforming the market [8][9] - The decline is attributed to a decreasing U.S. birth rate and challenges in the apparel retail sector, including increased costs due to tariffs and declining sales [8][9] Stock 2: IPG Photonics (Ticker: IPGP) - IPG Photonics' stock rose from $81.59 to $113.26, marking a 39% increase, but still lagging behind the market [12][13] - The company faced four consecutive years of declining revenue, which negatively impacted investor sentiment despite recent signs of recovery [12][13] Stock 3: Ellie Mae (Ticker: ELLI) - Ellie Mae was acquired for $99 per share in 2019, resulting in a 65% gain from the initial cost basis of $59.78, outperforming the market during its trading period [18][19] - The acquisition by Thoma Bravo and subsequent sale to Intercontinental Exchange highlighted the potential missed opportunities for early investors [19][20] Stock 4: Planet Fitness (Ticker: PLNT) - Planet Fitness' stock surged from $13.86 to $92.72, achieving a remarkable 569% increase, significantly outperforming the market [23][32] - The company demonstrated consistent revenue growth and resilience, even during the pandemic, which contributed to its strong performance [23][24] Stock 5: Mercado Libre - Mercado Libre's stock skyrocketed from $87.71 to $2,041.50, representing a staggering 2,227.6% increase, far exceeding the market return [26][32] - The company's growth was driven by its dominant position in the Latin American e-commerce market and the increasing shift of retail to online platforms [26][29] Overall Performance - The average return of the five stocks was 568.5%, significantly outperforming the S&P 500's 274.3% return over the same period [32] - The performance of Mercado Libre was pivotal in achieving this average, illustrating the power of a few high-performing stocks to drive overall portfolio success [31][32]