Imagine Having Foresight in Investing

In the investing world it has always been the million dollar, now the billion dollar question, what are the hot stocks?  What stocks and shares to buy that will grow and increase in value, either for a quick cash grab, or for the long-term?


The answer to this is indeed an investor’s dream!


If you ask those investors who are and have been successful they give a few reasons owing to their success:


*  Timing


*  Research


*  Luck


Many may add to this such as “take the long-view”, know your risk aversion, never invest more than you can afford to lose, the list can go on and on.


The fact is timing and luck are a factor in investment success.


And jumping on band wagons, is not always a part of success in investing.


The Dot-Com Craze


The dot-com craze, or dot-com bubble as it was also known, was based on many new Internet companies around the time of the mid 1990’s until 2000.


There was a lot of speculation about the growth of the Internet, Internet trade, and online sales, and many companies, start-ups, were over valued, and eventually crashed and burned; stock and financially speaking.


Only the strong survive, and two (2) of those survivors were eBay and Amazon.


Which leads to the question of foresight, who invested in either of these two companies, now Internet Giants ( source back in the day?


Who had the foresight, luck, and timing, or did their research and played the long-game, to make that investment work?


Investing in The Giants of The Internet


If we look at some of the companies that have made money and been profitable and are strictly Internet and ecommerce based, such as eBay, Amazon, Facebook, Twitter, and others, there has been a lot of money to be made by investing in them, but timing was important.


Both eBay and Amazon took huge losses after the bubble of the dot-com period burst, however both did rebound.  Talk about taking a long view.


Amazon now is making over $6K in 10 seconds as profit, eBay is earning almost $3K in 10 seconds, and Facebook earns $3.23K in the same 10 seconds.


While Apple may be the number 1 earner at $1.45K in profits per second, none of the others are too shabby.


Where does the foresight in investing come into play here, the magic of the Internet.  Seeing and knowing, and then betting by investing, that these Giants would grow and rise to the stature they now have.


Netflix, who is amongst the Giants of the Internet, did not start out as a strictly Internet streaming service. They began by renting DVD’s by mail, as VHS tapes were too costly to post, so they were cost prohibitive, and also a bit antiquated.


Without the Internet, there would not even be the Giants such as Facebook and Twitter.


Then look at Apple and even Microsoft, while they were originally PC or personal computer based companies, they have seen the light of the Internet, and had the foresight to make the changes required to grow and become, and stay successful!


The Internet changed how we use our mobile phones, as we use them more for Facebook and to Tweet, and search for stuff to buy, than we do for phone calls.  All because now we can access the Internet using our mobiles, thanks in part to the companies that had the foresight to see this coming, or the foresight to cause that change.


So foresight in investing, is it real, or is luck a larger role?


Then the next question is, who are the next “Giants of (insert industry here)”?  


Is it mobile applications?  Are they to continue to grow and explode in the investing scene even more than they have?


No crystal balls here, but keep your eyes open, do some research, and time your purchases….oh, and a little luck.



Disclaimer: This content does not necessarily represent the views of IWB.


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.