In this article, I will discuss two growth stocks that I believe are great additions to a portfolio. Both investments are considered low-risk due to their secure valuations, and I currently own both with plans to increase my positions.
One of the stocks I recommend is Alphabet (NASDAQ:GOOG.L)(NASDAQ:GOOG), which I believe is undervalued by approximately 20%. Alphabet offers a diverse range of technology products and is a leader in the AI industry. With year-on-year revenue growth of 11.8% and a price-to-earnings ratio of 26.5, I see Alphabet as a valuable investment compared to other tech giants like Microsoft.
Another stock I recommend is Games Workshop (LSE:GAW), a niche company known for its creative tabletop games. With a loyal customer base and a commitment to long-term success, Games Workshop has shown year-on-year revenue growth of 14.5% and a price-to-earnings ratio of 23.5. I believe the market has undervalued this company, making it a strong addition to a portfolio.
While I support diversification, my portfolio is concentrated with just 10 stocks. I follow an 80/20 analysis to identify the investments that produce the best results and focus on increasing those positions over time. Both Alphabet and Games Workshop have proven to be valuable holdings in my portfolio, and I have no plans to remove them anytime soon.