A top investor’s tip of reaping rewards from your winners

THE WEEK IN REVIEW Every Sunday Starting At 8am PT / 11am ET Every week we review the rollercoaster ride that is the most dynamic stock market in history. We review, in detail, the best options and equity plays of the week. Your host, Mike Anderson, will provide a step by step breakdown of how these winning trades were first identified and how they were timed. Understanding how these trades are made will help you to identify similar trends and have confidence in executing your own successful trades. Plus: Bring your ticker and we will use Trade Algo's proprietary algorithms to help you analyze that trade you've been thinking about. [JOIN OUR LIVE TRADING SESSION @ 8am PT / 11am ET!]( [Shadow] Hello investor, Stan Druckenmiller has an investing track record that can match virtually anybody – including Warren Buffett. His hedge fund, Duquesne Capital, delivered an annual average return of 30% for almost four decades from 1986 to 2010. And he never had a down year. He was featured in David Rubenstein’s new book called How to Invest. We will highlight his number one tip on investing that can be extraordinarily beneficial to you as a retail investor. Stan Druckenmiller (Photo: Getty Images) His #1 tip on investing: Rubenstein asked him what the qualities of great investors were. Druckenmiller pointed to a lesson he learned from George Soros, whom he previously worked for. It’s not whether you are right or wrong. Rather, it is how much you make when you are right… and… how much you will lose when you’re wrong. And once you’re convinced about something, go big. He pointed to legendary investors like Warren Buffett, Carl Icahn, and George Soros as someone who go big when they’re convinced about something. Warren Buffett is known as a conservative investor, but Apple makes up nearly 41% of his portfolio. - “If you think about it, whether it’s Warren Buffett, Carl Icahn, or George Soros, almost every great investor is a big concentrator above what they would ever teach in business school. It was sizing of positions that I learned from George,” said Stan Druckenmiller. And there was another tip in that paragraph – “…above what they would ever teach in business school.” A business school teaches what’s average. But no extraordinary success can be achieved by following the average. Rather, a retail investor may be better off learning from actual players in finance who have achieved what the investor aspires to do. Bet On This Software That Is “Control Tower” For Fortune 500 Today’s Pick: ServiceNow, Inc. ([NOW]( Some CEOs are born winners. They win everywhere they go. As an investor, you want to harness these prized horses and ride all the way to the winning circle, making a bundle along the way. ServiceNow CEO Bill McDermott is one of them. - Bill has won everywhere he went. He started as a working-class kid who worked three hourly wage jobs. As a 16-year-old, he bought a small deli store and ran the shop. And the earnings paid for his college education. - Then, he was a door-to-door salesman for Xerox. He won there, as well. He ranked number one in every sales position he held and became the company's youngest-ever corporate officer. - Eventually, he became the CEO of SAP in 2010. A monster success also followed. During his tenure, SAP’s market cap nearly tripled, soaring from $39 billion to $144.7 billion in eight years. No easy feat for a company of that size. After SAP, Bill could have any job he wanted after all these phenomenal successes. And he chose ServiceNow. No surprise there. The company has a tremendous product that solves excruciating pain points for the customers. - “ServiceNow is the control tower for digital transformation for every business, in every industry, serving every persona,” said CEO Bill McDermott. As a result, 85 percent of Fortune 500 companies use ServiceNow ([NOW]( to manage their IT infrastructure. (Source: ServiceNow) This is key because Mr. McDermott pointed out that the bulk of the big tech’s equity value relied on network effects, and that is what ServiceNow is building right now. - “About 70% of global tech equity value comes from firms that rely on network effects, and we see growing platform adoption across all of our businesses,” said Mr. McDemott. The future is outstanding. When you fill the sales pipeline with an abundance of opportunities at every stage, you can develop an intuition of what the future would look like. So far, it points to a bullish future. - “Based on this new business surge, we are giving a very strong guidance for 2023. Our guidance reflects a disciplined forecast that appropriately balances our well-founded optimism for ServiceNow's business.” ServiceNow had $5.9 billion in revenue in 2021 and $6.8 billion in 2022. McDermott expects the company to hit $10 billion, nearly doubling in just three years: - “Even in a complex operating environment, ServiceNow is executing at the rule of 58.5%. We are driving net new innovation, fast growth and operating leverage. ServiceNow is the proverbial safe harbor in all weather conditions,” said McDermott. (Source: ServiceNow) Want to know what’s astonishing? ServiceNow is notable for its ability to keep and increase the annual contract value from each customer over the years. In short: Once customers join, they end up buying more. In the chart below, you will see the annual growth rate from the original contract value of each customer. - Case in point: Let’s look at 2010’s customers. A customer that joined 2010 saw its contract value increase by 191% annually over the ten-year period. And it includes any losses incurred. (Source: ServiceNow) One more amazing piece of data: ServiceNow saw a big growth in the total number of customers (with over $1M contracts) in the last two years: - Total customers grew by 47% over the two years -- from Q4-20 to the most recent quarter. That’s good, right? But here’s another thing: The average contract value also grew by 20%! ServiceNow is not only signing more customers but also the company is signing bigger contracts in each of them. (Source: ServiceNow) Bottom line: ServiceNow ([NOW]( has a phenomenal product that keeps on growing in two key areas: total customers and total contract value. With its recurring subscription mode, the stock is a slam dunk for the next five years. [JOIN OUR LIVE TRADING SESSION @ 8am PT / 11am ET!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](