2 best actions of all time!

This bear market makes me think back to my 2 best trades of all time. It was when I bought Amazon (AMZN) and Booking (BKNG) in 2001 as they crashed in the middle of a bear market...but were now enjoying truly phenomenal gains. Let's discuss what these investments had in common and how it will help us find other big winners in the years to come. Read below to learn more.

shutterstock.com - StockNews

Today I want to step back in the time machine to 2001 when I bought the best two of my career from investor.

No... my intention is not to brag. Instead, I want to focus on what went well with these investments in hopes of helping us all find more big winners in the future.

And the 2 actions are...

Amazon (AMZN) for a paltry 43 cents (adjusted for allocation) leading to a total gain of +26,525%.

Priceline (now Booking Holdings (BKNG) bought at $14.62 and now up +11,274%.

It seems so obvious now. But what's so funny is that at the time, those stocks were falling. Especially Amazon (AMZN) which many experts say would NEVER make a profit given the low trading margin and competition from others. Oh how wrong they were!

Let's dig deeper to find out what each has in common.

Hope you can see the similarity to the present day. That being the case, the purchase was made about a year into a bear market as the best growth stocks tumbled, making for truly phenomenal entry points for long-term gainers. p>

Did I buy low? No

But it was damn close enough in the grand scheme of things. And that's why buying growth stocks that are currently trading at more than 50% of their all-time highs is also a wise move.

Beyond that, we also need to consider other key things that make them great stock picks.

What is most obvious is that this was the early days of the internet and these were two pioneers of e-commerce. So riding a great wave of innovation is certainly part of the winning equation.

Another similarity is that they were early leaders in their respective categories. And often, that early market share tells you who will dominate in the long run, with lesser players being left out.

This is where investment legends like Lynch, Cramer and Buffett agree. This means focusing your investments on the best players in the industry, because quality and excellence are business advantages that can stay with a company for many, many years.

AMZN and BKNG have invested heavily in R&D to keep innovating. Sometimes this led to disappointing quarterly results. But in the long run, it has allowed them to stay ahead of the competition. Amazon more than Booking in this case.

The final point that stands out is that I didn't buy them at peak valuations. I bought them after a big setback. This is where growth and value combine to find the best long-term winners.

Where to find the next big winners?

I'd like to say it's easy...but it's not.

This means that far too many investors believe the solution is simply to seek out stocks with the highest year-over-year growth rates. However, academic research clearly shows that these are some of the least profitable stocks.

Why?

Too often, high expectations are not met and actions implode.

What is needed is extensive research into these growth areas like 5G, Blockchain, Medical Cannabis, Internet of Things, Cancer Drugs, etc. And on top of that, a disciplined approach to stock selection so as not to chase overvalued stocks which are the next big losers.

If this approach sounds appealing to you, you should check out our popular POWR Trends newsletter.

This is where we combine phenomenal growth with the security that comes from using the POWR rating system. And right now, we're giving away 3 free bonus reports on the best stocks in these exciting growth areas:

Autonomous vehicles: the most disruptive technology since smartphones Genomics: Revolutionizing the Diagnosis and Treatment of Diseases Augmented Reality: Technology Ready for Massive Growth

These bonus reports are only available until Sunday, September 25 at midnight. So be sure to click the link below to get them now!