Investing is a long-term business but sometimes it is impossible to resist the temptation to chase rapid short-term gains and turbocharge your overall returns.
While there is a slow-burning pleasure in building up a portfolio of solid, blue-chip dividend stocks, it is also nice to have a little excitement.
No investor can resist the allure of what might have been, if only they had bought the right growth stock at the right time.
This feeling was endemic during the technology boom, when investors tormented themselves with visions of buying, say, online retailer Amazon in 2001 for 35 cents, as its stock rocketed towards $175 some 20 years later.
That is an increase of 49,900 per cent, which would have turned $10,000 into more than $5 million.
We can dream, and we do. Which explains the appeal of Elon Musk’s electric car maker Tesla, the world’s fantasy stock in the latter stages of the technology boom.
New data from investment platform Saxo shows the stock is still up a stellar 1,057 per cent over the past five years. It turned $10,000 into $115,700, despite losing half its value over the past 12 months.
Yet, Tesla was not the best performer over five years. It came second to California-based solar power and battery storage specialist Enphase Energy, which soared by a staggering 4,501 per cent.
That would have turned $10,000 into $460,100, putting Tesla in the shade.
The technology sector has struggled lately, as the era of cheap money comes to an end and Silicon Valley companies lay off tens of thousands of workers, but it is still the breeding ground for big stock market winners.
Biotech manufacturer ChemoMetec is the third best-performing global stock over five years, up 1,039 per cent, while processor and graphics company Advanced Micro Devices grew 875 per cent and Singapore’s global consumer internet company Sea rose 668 per cent.
Saxo’s research shows battery storage was the best-performing investment theme in the past five years, with renewable energy in second place.
While these numbers are dazzling, they are not particularly useful for investors.
Past performance figures are dangerous as they give investors a misleading idea of how these stocks may perform in the future.
Hindsight is a wonderful thing and “we all wish we could go back in time and pick the big winners”, says Anaam Raza, of investment platform Saxo.
The sad truth is we cannot and the majority of investors will lose money trying.
Many are giving up on growth stocks, given the bloodbath of the past year, yet Martin Romo, equity portfolio manager at The Growth Fund of America, reckons the market is “throwing the baby out with the bathwater”.
“It is essential to differentiate between companies that have reached the end of their runway or are facing stiffer competition with those that are simply in a cyclical slowdown,” he says.
Many companies will accelerate when the economy improves, and Mr Romo says the pace of innovation is picking up, particularly in artificial intelligence.
“Microsoft’s $10 billion investment in ChatGPT creator OpenAI is a recent example, but the push to develop innovative uses of AI is happening all around,” Mr Romo says.
Technology company Nvidia is already using AI to speed up product development while semiconductor maker Broadcom, which helped develop AI chips for Google in 2016, has since introduced more advanced AI chips, he says.
“This feels like the early days of mobile and cloud, just before they entered an era of hyper-charged growth.”
Others remain wary. David Philpotts, head of strategy at Schroders, warns that big names such as Facebook, Apple, Netflix, Meta, Amazon and Google are cheaper after recent falls, but far from bargains.
“Without their support, the US technology sector may no longer be the leading driver of stock market returns. Disruption is the norm but investors had it too easy identifying the winners for a short period of time,” he says.
For many, investing in growth stocks through an investment fund or exchange-traded fund makes more sense than trying to unearth the next Amazon or Enphase.
There are signs that the best-known way to play disruption — think fund manager Cathie Wood’s ARK Innovation ETF — is swinging back into favour. This fund achieved cult status during the technology boom only to fall by 40 per cent last year.
It is essential to differentiate between companies that have reached the end of their runway or are facing stiffer competition with those that are simply in a cyclical slowdown
Martin Romo,
equity portfolio manager at The Growth Fund of America
So far this year, it is up 29.13 per cent as its core themes of DNA technology, the genomic revolution, automation, robotics, energy storage, FinTech innovation and AI tempt investors again.
Small and micro-cap stocks can provide huge gains for investors but they come with substantial risks, says Russ Mould, investment director at AJ Bell.
“They tend to be more reliant upon one key product or service, one key executive or entrepreneur and one geographic market.”
If all goes well, the upside can be tremendous. “But if anything goes wrong, there is not much of a safety net, especially as young companies may not be profitable or generating cash, so their balance sheet may be less able to withstand any shocks,” Mr Mould says.
At worst, the fledgling company may simply fold, leaving investors with nothing.
“That’s why investors demand high returns from small caps, to compensate themselves for the higher risks involved,” he says.
Most private investors will want to spread the risk by investing in a smaller company or micro-cap fund, where a manager picks potential winners on your behalf, and spread the risk among dozens of companies.
It could be a good way to play the next stock market rally, when it finally comes.
We are not there yet, recent small-cap fund performance suggests. The Vanguard Small Cap Value ETF is down 9.8 per cent compared with 12 months ago.
Another popular smaller company ETF, BlackRock’s iShares Core S&P Small Cap, is down 8.9 per cent over one year and has edged up by only 1.41 per cent so far in 2023.
However, there are signs of life, with the Vanguard FTSE All World ex-US Small Cap ETF climbing 7.54 per cent year to date.
Smaller companies tend to struggle in a downturn, but lead the charge in a recovery.
Investors who are happy to take above-average risks in search of potentially above-average returns could allocate about 5 per cent of their equity portfolio to small caps, Mr Mould says.
“Cautious investors may allocate less,” he says.
That is a lot less exciting than going big on what you reckon is the next Enphase Energy but, ultimately, it could prove a lot more rewarding.
You will never receive a 4,500 per cent return from investing in a small-cap fund, but you should not lose the lot, either.
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
The biog
Name: Maitha Qambar
Age: 24
Emirate: Abu Dhabi
Education: Master’s Degree
Favourite hobby: Reading
She says: “Everyone has a purpose in life and everyone learns from their experiences”
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
MATCH INFO
UAE Division 1
Abu Dhabi Harlequins 12-24 Abu Dhabi Saracens
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Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
New schools in Dubai
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A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
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SPEC%20SHEET
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UAE currency: the story behind the money in your pockets
The biog
Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha
Favourite book: One Hundred Years of Solitude
Holiday destination: Sri Lanka
First car: VW Golf
Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters
Driverless cars or drones: Driverless Cars
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
UAE currency: the story behind the money in your pockets
THE%20SPECS
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Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
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The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
BEACH SOCCER WORLD CUP
Group A
Paraguay
Japan
Switzerland
USA
Group B
Uruguay
Mexico
Italy
Tahiti
Group C
Belarus
UAE
Senegal
Russia
Group D
Brazil
Oman
Portugal
Nigeria
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
The specs
Price, base / as tested Dh1,470,000 (est)
Engine 6.9-litre twin-turbo W12
Gearbox eight-speed automatic
Power 626bhp @ 6,000rpm
Torque: 900Nm @ 1,350rpm
Fuel economy, combined 14.0L / 100km
More from Rashmee Roshan Lall
Sunday:
GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses
FA%20Cup%20semi-final%20draw
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Starring: Jamie Foxx, Angela Bassett, Tina Fey
Directed by: Pete Doctor
Rating: 4 stars
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Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
1. Your pension fund has been placed inside an offshore insurance wrapper with a hefty upfront commission.
2. The money has been transferred into a structured note. These products have high upfront, recurring commission and should never be in a pension account.
3. You have also been sold investment funds with an upfront initial charge of around 5 per cent. ETFs, for example, have no upfront charges.
4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.
5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
'Panga'
Directed by Ashwiny Iyer Tiwari
Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta
Rating: 3.5/5
Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
Info
What: 11th edition of the Mubadala World Tennis Championship
When: December 27-29, 2018
Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams
Tickets: www.ticketmaster.ae, Virgin megastores or call 800 86 823
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania
Verdict: 4 Stars