The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor

This is a one way ticket that takes you on a wonderful journey into the vast world that is the stock market through my eyes, my point of view.

Saturday, October 14, 2006

How Investing In New and Exciting Companies Can Pay Off In the Long Run

Hey ladies and gents,

Ever wonder how much your money can grow in the long run? Smart investors wanted to find out that answer out for themselves back in 1989, when many adventurous investors began buying shares of Dell Computer (DELL). To make a long story short, the investors made a killing. Lets put this in perspective. Let us say back in 1989, you decided to invest $10,000 in DELL. If you held on for 10 years, you could have made a cool $8.9 million from your measly $10k investment! As insane as it sounds, it is true (read this in One up on Wall Street by P. Lynch). The problem is, very few people can envision how something can grow, change or fluctuate so far in the future. As humans, we are very present (and past) oriented, seldom thinking or planning about the future time frame. The small percentage of people who are visionaries, are blessed with an extraordinary talent. These individuals are very open minded, imaginative and forward thinking, always working towards a future vision or goal. By focusing on the future as well as the present they are able to make gains, leaps and bounds that have a huge impact on themselves and society as a whole (think of Paul Allen of Microsoft, and investors who bought DELL and held onto it for a decade). It takes tremendous discipline to be a visionary.

I only wrote this piece to heighten your awareness. Our world is filled with many exciting products and companies that have the potential to make their shareholders a handsome return. I am not talking about the current conventional companies or even past winners (like Dell or Best Buy). I am talking about new companies that have recently emerged on the scene. I am talking about companies and stocks such as RVBD, EHTH, APKT, CVLT, etc. Many of these new issues feature novel technologies while others feature exciting new approaches to old solutions. What if one of these companies are one of the few that produce tremendous gains later down the line? Am I a dreamer? Maybe. But still, I can't help but wonder. I am aware that times have changed. Stocks are not as investor friendly as they used to be. Growth in the American economy isn't as explosive as it used to be. Maybe I am a dreamer, but even that will not stop me from wondering and pondering about the future.

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