My returns are impressive in part because I got lucky with the timing. I buy stocks with the intention of holding them much longer than Strategy Lab demonstrates. One other thing I'd like to mention is that five years is still a very short time span by my investing standards. Such stocks almost always seem expensive, even to most professional investors. But you must get past the fear that most classical investors have about such stocks being too expensive.Īt the risk of being called out for a tautology – you can't have a top-performing stock without it hitting new highs. And it's easiest to do this in markets that you happen to be passionate about. But I think you can predict which companies are likely to deliver innovative or disruptive surprises based on their history and executive leadership. The thing about surprises is … you can't predict what they'll be. Netflix is now, in my opinion, a total no-brainer for every household with a broadband Internet connection, even if subscribers plan to keep their existing paid TV connection. I was right about that, but I had absolutely no idea it would become a powerhouse of original content. I was a believer in this business because of the incredible global expansion opportunity it faced. is up more than 2,000 per cent in the past five years. I wasn't expecting Facebook Messenger or Facebook Groups to grow as they have to increase consumer and business stickiness within the Facebook environment.Īnd my biggest winner? Netflix Inc. I was not expecting it to keep improving its advertiser toolbox to the degree that it's now, in my opinion, a better ad platform than Google Inc.'s. because I liked what it was doing with its advertising platform, and I had first-hand experience publishing ads. I also didn't know they'd quickly move into a leadership position for self-driving cars. to the portfolio, I had no idea the company would rapidly build a global fast-charging network for electric cars, build the world's biggest battery factory and launch into the commercial and residential energy-storage business. When Strategy Lab started, I didn't imagine Apple would launch and massively succeed with iCloud services such as Apple Music. If I'm on the right track, I'll continue waking up to interesting news about products, services or other similar business moves. When I invest in a company, I'm doing so because I think it will deliver a lot of positive surprises, just as Mother Nature is doing right now. If disruption creates the opportunity to become a market leader then innovation allows a company to maintain leadership. It disrupted the cellphone market with the iPhone, and it continues to innovate around this area that it now dominates. Innovation and disruption are not the same thing. And that strategy is to invest in companies that are clear leaders in important or emerging fields and run by excellent managers who inspire innovation or disruption. Here is a list of our partners.If we had to start over again, I probably couldn't duplicate that level of success. Our partners cannot pay us to guarantee favorable reviews of their products or services. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. So how do we make money? Our partners compensate us. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward - and free. We believe everyone should be able to make financial decisions with confidence. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. They are not intended to provide investment advice. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. is an independent publisher and comparison service, not an investment advisor.
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