Greatest Momentum Investors Ever: A Look At Their Best Momentum Bets

by Siddharth Singh Bhaisora

Published On Dec. 7, 2023

In this article

Momentum investing works well in bullish markets. And the markets have been really bullish this month. Nifty 50 has crossed all time highs as it nears 21,000 and Sensex is approaching 70,000. The question we get asked is whether the market can continue to rise from here or whether there are corrections that can be great buying opportunities. Very few have mastered the art of momentum investing , achieving extraordinary success by capitalizing on market trends and growth opportunities.

In today’s article we look at the top 10 momentum investors in our books, each renowned for their unique strategies and remarkable achievements. From the early pioneers who shaped the practice to contemporary masters pushing its boundaries, these investors exemplify the art of leveraging market momentum for exceptional gains. Let’s get into it.

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Greatest Momentum Investor #1: Richard Driehaus

Richard Driehaus, an American investor, is widely known as the father of momentum investing. He founded Driehaus Capital Management in Chicago, focusing on growth and momentum strategies. He started as a stockbroker in the late 1960s and established Driehaus Securities in 1979, gaining fame in the 80s and 90s for his investments in growth stocks, especially in tech and healthcare sectors. He focused on two things: investing in companies expected to grow quickly and buying stocks showing strong upward price movement. This involved buying stocks that are exhibiting strong price momentum.

He received awards like the Horatio Alger Award (2000) and the American Business Awards Lifetime Achievement Award (2009). He was a member of the Barron’s Roundtable.

Richard Driehaus Momentum Investing Plays

  • Apple (AAPL) in the 1990s: Driehaus identified Apple's strong price momentum and growth potential early on, investing heavily in the company before its major boom.

  • Home Depot (HD) in the 1980s: Driehaus recognized Home Depot's potential as a dominant home improvement retailer and invested significantly, reaping substantial profits as the company grew.

Richard Driehaus Home Depot Investment

Richard Driehaus invested in Home Depot (HD) in the 1980s. In fact, his early investment in Home Depot is considered one of his most successful trades and a testament to his momentum investing prowess.

  1. Strong Price Momentum: Home Depot experienced significant price momentum in the 1980s, with its stock price increasing rapidly. Driehaus, a pioneer of momentum investing, recognized this trend and anticipated the company's future growth.

  2. Favorable Technical Indicators: Driehaus utilized various technical analysis tools, including moving averages and relative strength indicators (RSI). These indicators signaled strong buying pressure and confirmed his belief in Home Depot's upward trajectory.

  3. Emerging Market Leader: Driehaus recognized Home Depot's potential to become the dominant home improvement retailer. He saw the growing demand for home improvement products and services and believed Home Depot was well-positioned to capitalize on this trend.

  4. Solid Management and Business Model: Driehaus was impressed by Home Depot's management team and its simple yet effective business model. He saw a company with strong fundamentals and a clear path to long-term success.

What exactly happened to Richard Driehaus’ Home Depot investment? There is limited publicly available information. It is suspected that it was partially sold between 1996 and 2000 which also aligns with Driehaus's investment philosophy of buying stocks with strong momentum and selling them once the momentum slows down. Remaining amount is assumed to have been sold during 2004 and 2008. This timeframe could be attributed to his desire to diversify his portfolio or his analysis suggesting a potential slowdown in the home improvement market.

Read this article on Momentum Investing: Risk, Reward & Everything Else

Greatest Momentum Investor #2: Ken Fisher

Ken Fisher, a prominent American investment guru and founder of Fisher Investments, is known for his unorthodox strategies and data-driven approach. Fisher began his investment journey in the 1970s, honing his skills as an analyst and portfolio manager. In 1979, he launched Fisher Investments, catering to high-net-worth individuals and institutions.

His investment philosophy is based on a contrarian approach & taking data-driven decisions. Fisher thrives on taking positions contrary to prevailing market trends. This contrarian approach allows him to capitalize on potential market corrections and identify undervalued opportunities. He also emphasizes the importance of data and analysis in making investment decisions. He believes this data-driven approach provides a more objective and informed perspective than relying solely on intuition or market sentiment.

Ken Fisher Momentum Investing Plays

  • Apple (AAPL) in the 1990s: Recognizing Apple's strong price momentum and growth potential, Fisher made significant investments in the company before its major boom.

  • Gold in the 1970s: He identified the rising gold price trend and advised investors to buy gold, leading to substantial profits as the price surged.

  • Shorting the Japanese Yen in the 1990s: Anticipating the Yen's devaluation, Fisher implemented a successful short-selling strategy, profiting from the currency's decline.

Ken Fisher’s Apple Investment

Apple is one of Fisher Investments' largest holdings, representing a significant portion of their portfolio. According to reports, as of July 2023, Fisher Investments held approximately 52.35 million shares of Apple stock, valued at roughly $10 billion. This makes Apple Fisher's largest individual stock holding.

  1. Strong Price Momentum and Growth Potential: Apple has historically exhibited strong price momentum, with the stock price steadily increasing over the years. Fisher, known for his focus on momentum investing, likely recognized this trend and the potential for further growth.

  2. Dominant Market Position and Brand Recognition: Apple is a leading player in the technology industry, with a dominant position in the smartphone and tablet markets. It also enjoys strong brand recognition and customer loyalty, contributing to its long-term success.

  3. Consistent Innovation and Product Development: Apple is renowned for its innovative products and services, such as the iPhone, iPad, and Mac computers. Fisher, who emphasizes investing in companies with strong competitive advantages, likely perceived these innovations as key drivers of Apple's future growth.

  4. Financial Strength and Stability: Apple boasts a strong financial position with significant cash reserves and consistent profitability. This financial stability likely appealed to Fisher, who seeks to invest in companies with a solid track record and a clear path to future success.

Here’s a Complete guide to Momentum Investing & the Wright Momentum Portfolio

Greatest Momentum Investor #3: William O’Neil

William O'Neil (born 1932) is a prominent figure in the investment world, known for several achievements: O'Neil's work and strategies have significantly influenced the field of momentum investing, inspiring countless investors and traders. His principles and methodologies continue to be studied and applied by investors around the world.

  • Founded Investor's Business Daily: In 1963, O'Neil launched this daily newspaper, providing comprehensive coverage of the market and business news.

  • Developed the CAN SLIM system: This popular investment strategy combines fundamental analysis with technical indicators to identify high-growth stocks with strong momentum.

  • Bestseller "How to Make Money in Stocks": This book has been a cornerstone for investors seeking to understand and implement the CAN SLIM strategy.

  • Several other books on investing: O'Neil's publications share his insights and expertise with a wide audience of investors.

William O’Neil’s Momentum Investing Plays

O'Neil successfully identified companies like Wal-Mart and Microsoft in their early stages, highlighting his ability to spot potential before others. He advocates making investment decisions based on careful analysis and data, not solely on intuition or market sentiment.

  1. Wal-Mart (WMT) in the 1970s: Applying the CAN SLIM system, O'Neil recognized Wal-Mart's strong fundamentals and relative strength, leading to substantial profits as the company expanded.

  2. Microsoft (MSFT) in the 1980s: O'Neil saw Microsoft's innovative potential for disrupting the software industry, resulting in significant returns for investors who followed his lead.

Understand Why Momentum works .

Greatest Momentum Investor #4: Jim Slater

Jim Slater (1926-2015) was a British investor and author who pioneered the "Zulu Principle," a unique approach to momentum investing. He emphasized identifying and investing in companies exhibiting strong trends and positive momentum, aiming to capitalize on their potential for significant growth.

Slater primarily focused on high-growth companies with strong earnings potential and attractive valuations compared to future prospects. He utilized technical indicators and chart analysis to identify trends and confirm momentum, seeking to find stocks with breakout potential. While emphasizing momentum, Slater also valued strong underlying fundamentals, ensuring companies had the potential to sustain their growth. He advocated for strict risk management, including setting stop-loss orders to limit potential losses and avoiding overconcentration in any single investment. Unlike traditional diversification strategies, Slater often concentrated his portfolio in a small number of high-conviction holdings.

Jim Slater’s Momentum Investing Plays

  • British Petroleum (BP) in the 1950s: Recognizing BP's exploration potential and the growing demand for oil, Slater invested heavily, reaping substantial profits as the company expanded.

  • De Beers in the 1960s: Slater identified De Beers' dominant market position and the potential for rising diamond prices, leading to significant gains for his investors.

  • Grand Metropolitan in the 1970s: Early recognition of Grand Metropolitan's strong management and its aggressive acquisition strategy resulted in substantial returns for Slater and his followers.

Jim Slater’s British Petroleum Investment

In the 1950s, Jim Slater made a bold move - he invested heavily in British Petroleum, a company at the forefront of oil exploration, and reaped significant profits as the company's fortunes soared.

  1. 1950s saw a global surge in oil demand driven by economic growth and post-war reconstruction.

  2. BP was a relatively small player in the oil industry, but it possessed promising exploration rights in the Middle East and North Africa.

  3. Slater, a skilled analyst and risk-taker, recognized the potential for significant growth in the oil industry and BP's unique position within it. He identified BP as a company exhibiting strong momentum, with increasing oil reserves and growing production.

  4. He used technical analysis to identify a breakout pattern in BP's stock price, further confirming his belief in its upward trajectory. Despite some skepticism from others, Slater invested heavily in BP, putting a significant portion of his capital into the company.

  5. Slater's bet paid off handsomely as BP's oil production and profitability soared in the following years. The company's stock price multiplied several times, generating substantial returns for Slater and his investors. This successful investment cemented Slater's reputation as a shrewd investor and a pioneer of the "Zulu Principle," which emphasizes identifying and capitalizing on strong trends in the market.

Read this article to understand What is factor investing?

Greatest Momentum Investor #5: Cathie Wood

Cathie Wood, founder and CEO of ARK Invest, has become a leading figure in the world of disruptive innovation investing. Known for her bold bets on companies that are poised to revolutionize various industries, Wood's investment philosophy centers on five key themes:

  1. Disruptive Innovation: Wood focuses on identifying companies at the forefront of disruptive technologies like artificial intelligence, automation, robotics, blockchain, and genomic editing.

  2. Long-Term Growth: She takes a long-term approach, investing in companies with the potential for exponential growth, even if they are not yet profitable.

  3. Research-Driven: Wood and her team conduct extensive research to identify the companies that are likely to benefit from disruptive innovation.

  4. Active Management: ARK Invest actively manages its portfolios, making adjustments based on the changing market landscape and new technological developments.

  5. Transparency: Wood is known for her transparency, regularly sharing her research and investment thesis with the public.

Cathie Wood’s Momentum Investing Plays

Here are some of Cathie Wood's best investing bets:

  • Tesla (TSLA): Recognizing Tesla's potential for disrupting the automotive industry with electric vehicles, Wood invested heavily in the company in its early stages. This bet has paid off handsomely, with Tesla's stock price skyrocketing in recent years.

  • Zoom Video Communications (ZM): Wood recognized the potential for Zoom to revolutionize video conferencing due to its user-friendly platform and cloud-based technology. This investment yielded substantial returns as Zoom became a dominant force during the COVID-19 pandemic.

  • Roku (ROKU): Wood saw an opportunity in Roku as a leading player in the streaming television market. This bet has been successful, with Roku's stock price increasing significantly as the streaming market continues to grow.

  • Shopify (SHOP): Wood believed Shopify's e-commerce platform would empower entrepreneurs and disrupt traditional retail models. This investment has proven successful, with Shopify becoming a leading e-commerce platform.

Cathie Wood’s Tesla Investment

Cathie Wood's investment in Tesla is arguably the most defining and controversial of her career. In 2014, when Tesla was still a fledgling electric vehicle (EV) manufacturer, Wood saw the potential for the company to revolutionize the automotive industry. She made a bold investment in Tesla, allocating a significant portion of her ARK Invest funds to the company.

  1. In 2014, the EV market was still in its infancy. Tesla was a relatively unknown company facing significant challenges, including production constraints and financial difficulties. Many investors were skeptical of Tesla's long-term viability, questioning its ability to compete with established car manufacturers.

  2. Despite the skepticism, Cathie Wood saw Tesla as a company disrupting the traditional automotive industry with its innovative technology and vision for a sustainable future. Wood used a long-term approach, investing in Tesla based on its potential for exponential growth and disruptive innovation in the EV market.

  3. She focused on Tesla's technological advancements, including its battery technology, self-driving capabilities, and software platform. Wood believed Tesla could not only capture the EV market but also become a leader in autonomous driving and other emerging technologies.

  4. Wood's investment in Tesla has turned out to be incredibly successful. As the EV market has exploded and Tesla has emerged as the dominant player, its stock price has soared, generating significant returns for ARK Invest and its investors.

  5. Wood's early recognition of Tesla's potential has cemented her reputation as a visionary investor. However, her investment has not been without its critics. Some argue that Tesla's valuation is too high and that its long-term growth prospects are uncertain.

Greatest Momentum Investor #6: John Henry

John W. Henry is not just a successful businessman and sports team owner, but also a legendary figure in the world of finance. His exceptional skills in identifying and capitalizing on market trends have earned him the title of "Master of Momentum Trading."

Henry is a firm believer in identifying and following established trends in the market. He utilizes technical analysis alongside fundamental analysis to confirm trends and determine entry and exit points. He was an early adopter of quantitative analysis and computer models, leveraging them to analyze vast datasets and identify statistically significant trading opportunities.

He also pioneered algorithmic trading strategies, utilizing computer programs to execute trades based on pre-defined rules and parameters, eliminating emotional biases and enhancing consistency. Prioritizing risk management, implementing strict stop-loss orders and position sizing strategies to protect his capital and mitigate potential losses.

John Henry’s Momentum Investing Plays

  • Black Wednesday (1987): Utilizing his trend-following approach and anticipating the market crash, Henry successfully shorted the stock market, generating substantial profits for himself and his investors.

  • Long-Term Capital Management (1998): Recognizing the excessive risk associated with LTCM, a prominent hedge fund, Henry predicted its collapse and profited from its demise, further establishing his reputation for identifying market shifts.

  • Oil Price Swings: Henry has consistently profited from volatile swings in the oil price, employing his quantitative analysis and technical expertise to identify and capitalize on both upward and downward momentum.

  • Gold Price Fluctuations: Similar to the oil market, Henry has demonstrated his ability to navigate the complexities of the gold market, profiting from significant price movements based on his momentum analysis.

John Henry’s Gold Investments

  1. 1989-1990 Gold Price Rise: Anticipating the potential for inflation and economic uncertainty, Henry invested heavily in gold during this period, profiting significantly from the subsequent rise in gold prices.

  2. 2008 Global Financial Crisis: Recognizing the potential for gold to act as a safe haven asset during times of economic turmoil, Henry increased his gold holdings significantly, further benefiting from the surge in gold prices during the crisis.

  3. Recent Price Fluctuations: Henry continues to actively manage his gold investments, adapting his strategies based on evolving economic and geopolitical factors.

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Greatest Momentum Investor #7: Paul Tudor Jones

Paul Tudor Jones, a legendary figure in the world of finance, is renowned for his exceptional trading skills and his unwavering commitment to momentum investing. He established Tudor Investment Corporation in 1980, which has grown into one of the most successful hedge funds globally, consistently generating impressive returns for his investors.

Jones emphasizes identifying and following established trends in the market, capitalizing on the momentum of assets experiencing significant upward or downward movement. He famously utilizes the 200-day moving average as a key indicator for identifying trends and determining entry and exit points. Jones deeply analyzes global economic trends, incorporating this understanding into his investment decisions. He believes that understanding the overall economic landscape provides valuable insights into potential market movements and opportunities.

While acknowledging the limitations of technical analysis, Jones utilizes various technical indicators and chart patterns to confirm his fundamental analysis and refine his trading decisions. Jones prioritizes risk management, implementing strict stop-loss orders and position sizing strategies to mitigate potential losses and protect his capital.

Paul Tudor Jones’ Momentum Investing Plays

  • Black Wednesday (1987): Anticipating a market crash, Jones shorted the stock market heavily, leading to significant profits for his investors and solidifying his reputation as a skilled trend follower.

  • Long-Term Capital Management (1998): Recognizing the excessive leverage and risk associated with LTCM, a prominent hedge fund at the time, Jones successfully predicted its collapse and profited from its demise.

  • Oil Price Swings: Jones has consistently capitalized on momentum in the oil market, profiting from both sharp drops and significant surges in prices over the years.

  • Gold Price Fluctuations: Jones has also demonstrated his adeptness at navigating the gold market, making considerable gains from its upward trends and strategically protecting his capital during downturns.

Paul Tudor Jones’ Oil Market Momentum Investments

Paul Tudor Jones' exceptional talent for identifying and capitalizing on momentum extends significantly to the oil market. Throughout his career, he has consistently demonstrated his ability to profit from both sharp declines and rapid increases in oil prices, solidifying his reputation as a master of oil momentum investing.

  1. 1990 Gulf War: Anticipating the war's impact on oil prices, Jones predicted a significant rise and heavily invested in oil futures, generating substantial profits for his investors.

  2. 1998 Asian Financial Crisis: Recognizing the potential for reduced demand and price drops as a result of the crisis, Jones effectively shorted oil futures, protecting his capital and profiting from the downturn.

  3. 2008 Global Financial Crisis: With his keen understanding of the economic implications of the crisis, Jones correctly anticipated a crash in oil prices and capitalized on it through short positions, further bolstering his reputation.

  4. 2014 Oil Price Collapse: Jones astutely predicted the 2014 oil price collapse due to factors like increased production and slowing global demand. He adeptly shorted oil futures and profited tremendously from the significant decline.

  5. Recent Price Swings: In recent years, Jones has continued to demonstrate his exceptional ability to navigate the volatile oil market. He actively adjusts his positions based on evolving dynamics, capitalizing on both upward and downward momentum.

Read this article to understand Why Momentum has worked historically .

Greatest Momentum Investor #8: Stanley Druckenmiller

Stanley Druckenmiller, a legendary figure in the financial world, stands among the most successful hedge fund managers of all time. His exceptional ability to identify and capitalize on momentum, coupled with his meticulous risk management approach, have earned him immense respect and recognition.

Stanley Druckenmiller prioritizes analyzing global economic trends, including interest rates, inflation, and currency fluctuations, to identify potential market shifts and opportunities. He takes a top-down approach to investing, first forming a macro view of the market and then identifying specific asset classes and sectors poised to benefit from anticipated trends.

Druckenmiller excels in identifying strong momentum across various asset classes, be it currencies, equities, or commodities. He leverages technical analysis alongside fundamental analysis to confirm momentum and gauge the potential for further gains. Despite his aggressive approach, Druckenmiller emphasizes risk management. He utilizes position sizing strategies and strict stop-loss orders to mitigate potential losses and protect his capital.

Stanley Druckenmiller’ Momentum Investing Plays

  • Black Wednesday (1987): Partnering with George Soros, Druckenmiller accurately predicted the market crash and successfully shorted the stock market, generating substantial profits.

  • Long-Term Capital Management (1998): Recognizing the excessive risk associated with LTCM, Druckenmiller profited from its collapse, further solidifying his reputation as a skilled risk-taker.

  • Currency Trading: Druckenmiller has made significant profits through his remarkable ability to predict currency movements, particularly his successful bets on the Japanese yen in the 1990s.

  • Technology Boom and Bust (1990s): Druckenmiller capitalized on the momentum of the technology sector in the late 1990s but exited strategically before the dot-com bubble burst, protecting his investors from significant losses.

Stanley Druckenmiller’ Currency Market Momentum Investments

  1. 1992 British Pound Short: Druckenmiller partnered with George Soros in a historic bet against the British pound. They anticipated the European Exchange Rate Mechanism's failure and shorted the pound, generating substantial profits when the mechanism collapsed.

  2. 1998 Japanese Yen Long: Druckenmiller recognized the potential for the Japanese yen to strengthen due to Japan's strong economy and trade surplus. He successfully profited from this long position as the yen appreciated significantly.

  3. 2011 Swiss Franc Short: Druckenmiller accurately predicted the Swiss National Bank's intervention to weaken the franc. He shorted the franc before the intervention, generating substantial profits for his investors.

  4. 2023 US Dollar Short: Currently, Druckenmiller is shorting the US dollar, anticipating interest rate cuts and a rise in non-dollar trade agreements.

Here’s a Complete guide to Momentum Investing & the Wright Momentum Portfolio

Greatest Momentum Investor #9: Michael Marcus

Michael Marcus, a legend in the world of trading, earned his reputation through his exceptional skill in the volatile commodity markets of the 1970s and 1980s. Often referred to as one of the greatest traders of all time, his legacy continues to inspire and guide aspiring and seasoned investors alike.

Marcus' primary focus was identifying and capitalizing on established trends in the market. He believed in "riding the wave" of momentum, entering trades when a trend was confirmed and exiting when it showed signs of reversal. He extensively employed technical indicators and chart patterns to identify trend direction, confirm entry and exit points, and gauge potential price movements.

While prioritizing technical analysis, Marcus recognized the importance of understanding underlying fundamentals. He considered factors like supply and demand, economic conditions, and geopolitical events to assess the sustainability of trends. Marcus emphasized strict risk management, utilizing stop-loss orders and position sizing strategies to limit potential losses. He prioritized capital preservation, believing that a single large loss could negate years of profits.

Michael Marcus’ Momentum Trading Plays

  • Mid-1980s U.S. Dollar/Japanese Yen Trade: Marcus' most celebrated trade involved predicting the rise of the U.S. dollar against the Japanese yen. His highly leveraged bet generated a substantial profit of over $80 million, showcasing his exceptional ability to identify and capitalize on major market shifts.

  • Soybean Market: Marcus consistently profited from his deep understanding of the soybean market, accurately predicting price fluctuations based on factors like weather conditions and global demand.

  • Multiple Commodity Markets: Marcus' expertise extended beyond specific commodities. He successfully navigated various markets, including gold, silver, and oil, demonstrating his versatility and adaptability as a trader.

Michael Marcus’ Soybean Market Momentum Investments

  1. 1970s Soybean Bull Market: Marcus accurately predicted and profited from the significant surge in soybean prices during the 1970s. This period witnessed a global rise in demand for soybeans, driven by population growth and increased consumption of meat and poultry.

  2. 1980s Soybean Price Volatility: Marcus successfully navigated the volatile price swings in the soybean market during the 1980s, adapting his strategies to changing supply and demand dynamics and profiting from both upward and downward momentum.

  3. Early 1990s Soybean Price Correction: Marcus anticipated the correction in soybean prices in the early 1990s due to factors like increased production and a slowdown in global demand. He strategically exited his long positions before the price decline, protecting his profits and avoiding significant losses.

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Greatest Momentum Investor #10: Nicolas Darvas

Nicolas Darvas, a dancer-turned-investor, rose to fame through his unique approach to momentum investing and the creation of the popular "Darvas Box" trading strategy. His remarkable journey and successful bets continue to inspire investors and traders worldwide.

  • Breakout Trading: Darvas focused on identifying and buying stocks experiencing strong breakouts to new highs, indicating potential for significant upward momentum.

  • Volume Confirmation: He emphasized the importance of high trading volume alongside breakouts, believing it signified strong investor interest and conviction in the stock's future performance.

  • Stop-Loss Discipline: Darvas prioritized risk management by employing strict stop-loss orders to limit potential losses and protect his capital.

  • Patient Observation: He emphasized the importance of patience and waiting for confirmation of a breakout before entering a trade.

The Darvas Box

Darvas developed the "Darvas Box" as a visual tool to identify potential breakout opportunities. This chart-based method involves drawing horizontal lines around a stock's trading range, with the upper line representing resistance and the lower line representing support. A breakout above the resistance line signifies potential for significant upward momentum, while a breakdown below the support line indicates potential for a downtrend.

Nicolas Darvas’ Momentum Trading Plays

  • Xerox: Darvas' most famous investment involved identifying and capitalizing on the early growth of Xerox in the 1950s. He recognized the potential of the company's copier technology and profited immensely from its subsequent rise to prominence.

  • General Motors: Darvas also successfully captured the momentum of General Motors' stock during its post-war expansion, further solidifying his reputation as a skilled momentum investor.

  • Multiple Stock Market Runs: Darvas consistently applied his strategy across various sectors and successfully rode numerous market uptrends, demonstrating its adaptability and effectiveness.

Nicolas Darvas’ Xerox Investment

  1. In the 1950s, Xerox was a relatively unknown company struggling to gain traction with its revolutionary copier technology. Most investors were skeptical of the company's long-term prospects, questioning the feasibility and market potential of its copiers. Darvas, however, saw beyond the initial challenges and recognized the potential of Xerox's technology to revolutionize the business world.

  2. Utilizing his "Darvas Box" strategy, Darvas identified Xerox's stock price breaking out of its trading range, signaling a potential for significant upward momentum. He observed increasing trading volume alongside the breakout, confirming strong investor interest and further solidifying his belief in Xerox's future.

  3. Implementing his risk management principles, Darvas employed stop-loss orders to limit potential losses while allowing substantial profits to accrue. He remained patient throughout the initial volatility and held onto his position as Xerox's stock price continued its ascent.

  4. Darvas' bet on Xerox proved incredibly successful. As the company's copier technology gained widespread adoption, its stock price soared significantly. Darvas' investment generated substantial profits, solidifying his reputation as a visionary investor with an uncanny ability to identify early-stage opportunities.

  5. His investment in Xerox serves as a classic example of momentum investing, highlighting the potential rewards of identifying and capitalizing on technological trends.

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