According to money manager Louis Navellier, America has two types of money.
One is dying. Losing value every single year, while the other is growing every day. This is our chance to get into the second group before it's too late with “Ownership Stocks.”
The Teaser
You've probably heard the term “K-shaped economy” before.
Louis has been managing money and penning investment newsletters for the past 47 years.
We have covered some of his most more recent newsletter teasers, including his Stage 2 AI Stocks and “Trump Shock” Stocks, among others.
The term “k-shaped economy” rose from the ashes of the 2020 pandemic to illustrate how different segments of the population experience drastically different economic outcomes.
In other words, the rich keep getting richer, while the poor keep getting poorer.
However, Louis isn't just pointing out the obvious. He's showing why it's happening and how we can cross from one side to the other.
The so-called “K-Shaped Economy” isn't some mysterious economic phenomenon. It's kind of like two currencies diverging. One that compounds and one that dies.
As you may be able to guess, the one withering away is fiat dollars and anyone trading time for dollars.
Meanwhile, the one that is growing and compounding over time is assets, with anyone owning them being a direct beneficiary.
So, is this some sort of economic glitch or by design?
R > G
The book Capital in the Twenty-First Century by a French economist named Thomas Piketty answers this question with a single formula:
To put it simply, returns on capital outpacing economic growth is not a bug in the system. It's the system working exactly as it was designed.
There's plenty of proof of this and knowing what to own makes all the difference.
The Pitch
The answer to this question is only revealed in a research report called The Ownership Economy: 7 Stocks in America's New Dynasty Class.
To get it, a subscription to Louis' research service, Growth Investor, is required.
Normally, the cost is $499 for a full year. But for a limited time, the first year would only set us back $49 and we get several bonuses and a 90-day money-back guarantee thrown in.
The Rules of the Game
The math is clear.
Every year we hold dollars instead of equity, we fall further behind.
For example, over the past 20 years, wages in America have grown just 12%. The stock market? Up more than 380% over the same period.
This is why the average S&P 500 CEO receives 71% of their compensation in stock, with other top executives also receiving the majority of their pay in stock options.
Ownership is also the lubricant that makes the biggest deals possible.
Thirty years ago, almost no major acquisitions were paid for entirely in stock. Less than 2%. Now, a full third of all major deals include stock as payment.
Like when Disney bought out 21st Century Fox for $71 billion dollars, they paid for half in stock and half in cash.
Some mega deals don't even include a cash component at all, such as AMD acquiring Xilinx for $35 billion in AMD stock.
Ownership, shares, a stake in businesses that grow. This is the most valuable form of money in the world today.
However, Louis says even among those who do figure it out and understand that ownership is the real currency, most end up buying the wrong stocks.
According to Louis:
At any given moment, only about 8% of the stock market is worth owning
Up until this last point, I wholeheartedly agreed with Louis' presentation.
Ownership, whether it's real estate, businesses, hard assets, is what you want to own rather than money under a mattress.
However, there is money to be made in stocks off the beaten path, so I'm not buying that only 8% of the market is worth owning. Nevertheless, let's see what top decile stocks Louis is recommending.
Louis Navellier's Ownership Stocks
Perhaps this teaser should have been called “The Only Stocks Worth Owning“, as that is what Louis is saying.
The first recommendation makes what Louis describes as “digital labor.”
- Everything a $100,000-a-year employee does, this company's AI does faster, cheaper, and without breaks.
- Seven of the ten largest companies in America use this company's digital workers.
Based on the last clue, UiPath Inc. (NYSE: PATH) is the pick here.
- UiPath makes artificial intelligence-based agentic automation software.
- The company serves 60% of the Global Fortune 500, including 8 of the top 10.
When it comes to the other six companies Louis believes represent the best ownership positions in the market right now, no additional information was offered up.
However, we can look at the system that helps Louis identify which stocks to own as well as some of his current holdings.
The Next Era of Wealth Compounders?
A good business can be a terrible stock.
Louis says it happens all the time.
The missing piece according to him is who else is buying into it?
This is why he tracks fundamentals and institutional money flow. When both signals align and a great business is attracting serious capital, it could be worth holding.
This is the grading system that has helped him identify split-adjusted Oracle at $0.51 cents, Dell, EMC, and Microsoft in the early 1990s, and Amazon at $2.
Louis' firm, Navellier & Associates, holds nearly 400 stocks, so around 8% of all U.S. publicly-traded stocks, with its top five holdings making up 22% of the entire portfolio:
- Nvidia (12% of entire portfolio)
- Eli Lilly
- Emcor Group
- Quanta Services Inc.
- Comfort Systems USA
Of these, Emcor Group, a global construction contractor, including for critical energy infrastructure, provides the best value proposition. It sports a valuation of 28x current earnings, a small dividend, and plenty of upside.
When it comes to the sole “ownership stock” that we were able to reveal, UiPath, it's a solid pick.
A growth business with a forward P/E of 11x, an ROE of 14%, and one of the cleanest balance sheets you will see for a high-tech enterprise, with more than $1.4 billion in cash against only $81 million of total debt.
The company also announced a new $500 million stock repurchase authorization in it's recent full year report, so there's a lot to like.
I can see it helping build wealth for long-term holders.
Quick Recap & Conclusion
- Money manager Louis Navellier is teasing a type of money that is growing every day and this is our chance to get it before it's too late with “Ownership Stocks.”
- Louis is talking about owning assets, and stocks in particular, instead of holding fiat dollars and trading our time for dollars.
- The names of what we should own are only revealed in a research report called The Ownership Economy: 7 Stocks in America's New Dynasty Class. To get it, a subscription to Louis' research service, Growth Investor, is required. It costs $49 for the first year for a limited time (normally $499).
- Louis has learned to keep his cards close to his chest and only provided clues on a single “ownership stock.” We revealed it for free as UiPath Inc. (NYSE: PATH).
- UiPath is a solid pick. A growth business with a relatively low P/E and a clean balance sheet.
What is your favorite asset to own long-term? Tell us in the comments below.