What makes you confident that a given stock has a great chance of delivering strong gains? Maybe it’s the stock’s previous performance. Perhaps it’s a huge market opportunity. The company might have a distinct competitive advantage you really like. Or you could simply have a positive gut instinct about the stock.
All of these are answers that I’d probably give when responding to the question. A good exercise at the beginning of each year is to go through the stocks that you own (or want to buy) to assess how confident you are about their prospects. That’s what I recently did. Here are my three highest-conviction growth stocks for 2021.