Hey traders,
A couple of days ago, I talked about why big companies — like Nvidia — struggle to double once they reach a massive size. The math just isn’t on their side.
And I said that’s why, when I’m looking for real upside, I turn my attention to smaller, durable names that still have room to grow.
Today, I want to show you exactly what I mean.
Case in Point: AutoZone and O’Reilly
Take AutoZone (AZO) and O’Reilly (ORLY).
These companies aren’t flashy. They don’t get the hype of an AI stock or a biotech moonshot. They sell car parts.
But look at their charts — long-term, steady, powerful trends.
Why? Because they execute their business plans consistently.
People always need to fix cars, and these companies dominate their niche. That kind of stability shows up in the stock price year after year.
Why It Matters for Traders
When you focus on durable businesses, you don’t have to chase the “next big thing.”
You’re looking at companies with proven track records, predictable demand, and strong execution. Those are the names that give me confidence to:
- Sell puts,
- Run covered calls,
- Or even just buy and hold.
The market might whip around day to day, but durable businesses keep moving forward.
Boring Can Be Beautiful
It’s tempting to chase hype, but Wednesday’s lesson still applies: the bigger the company, the harder it is to double.
That’s why I balance my trading. I use mega-caps like Nvidia for liquidity and steady income trades… but for long-term upside, I’d rather have durable names like AutoZone and O’Reilly in my corner.
Sometimes boring is beautiful. And for traders like me, boring and beautiful often means steady income and fewer headaches.
The Takeaway
Not every trade has to be a moonshot.
Sometimes the best opportunities are right in front of you — in durable businesses with long histories of delivering results.
That’s where I’d rather put my money.
Trade well,
Jack Carter
P.S. Tech chaos around the corner? Must be September. Here’s my take on how to stay protected and manage the chaos.
