GOOD READING: I'm not sure where I found this but I can see many parallels with GRCU. It also put my mind at ease about the current state of things. Not that I'm worried cause I know it takes time to build a company right. I'm not saying GRCU will ever be as big as these examples, but I'm also not saying it can't. Even so, I thought it was good enough to share. Again: not my words, just something I found.
RULES FOR HUNTING REVOLUTIONARY STOCKS
Rule #1 when hunting for revolutionary stocks is to ignore valuation. Wall Street likes to count things, and price/earnings ratios are one of their favorite measurements. But investors who focused on PE ratios missed the greatest growth years of Amazon, Google, Microsoft and Qualcomm.
Rule #2 is to use your imagination. This is difficult for most investors. It’s much easier to look back than look ahead. But ahead is where the big profits are. In the case of Amazon, having the imagination to see that the little company might actually put Borders out of business was key.
Rule #3 is to pay attention to management. It’s my contention that the best revolutionary stocks are those of companies led by visionaries. In fact, just off the top of my head, I made a list of the revolutionary stocks of my lifetime. Most—perhaps all—were led by exceptional managers: Apple, Blockbuster, eBay, Google, Green Mountain Coffee Roasters, Home Depot, IBM, McDonalds, Microsoft, Netflix, Oracle, Research in Motion, Starbucks, Tesla Motors, Teva Pharmaceuticals, Walmart, Whole Foods, Yahoo! and Xerox.
Rule #4 is to invest only when there’s potential for a major increase in perception. If you invested in Amazon (AMZN) when Jeff Bezos was on the cover of Time, you lost money. Similarly, if you bought Apple (AAPL) when it made headlines as being the most valuable company in the world, you lost money. To make big money, you’ve got to invest when skepticism is high!
RULES FOR HUNTING REVOLUTIONARY STOCKS
Rule #1 when hunting for revolutionary stocks is to ignore valuation. Wall Street likes to count things, and price/earnings ratios are one of their favorite measurements. But investors who focused on PE ratios missed the greatest growth years of Amazon, Google, Microsoft and Qualcomm.
Rule #2 is to use your imagination. This is difficult for most investors. It’s much easier to look back than look ahead. But ahead is where the big profits are. In the case of Amazon, having the imagination to see that the little company might actually put Borders out of business was key.
Rule #3 is to pay attention to management. It’s my contention that the best revolutionary stocks are those of companies led by visionaries. In fact, just off the top of my head, I made a list of the revolutionary stocks of my lifetime. Most—perhaps all—were led by exceptional managers: Apple, Blockbuster, eBay, Google, Green Mountain Coffee Roasters, Home Depot, IBM, McDonalds, Microsoft, Netflix, Oracle, Research in Motion, Starbucks, Tesla Motors, Teva Pharmaceuticals, Walmart, Whole Foods, Yahoo! and Xerox.
Rule #4 is to invest only when there’s potential for a major increase in perception. If you invested in Amazon (AMZN) when Jeff Bezos was on the cover of Time, you lost money. Similarly, if you bought Apple (AAPL) when it made headlines as being the most valuable company in the world, you lost money. To make big money, you’ve got to invest when skepticism is high!
