If you have a grand to spare, you should consider the following. But remember it won't be easy.
With stocks like Apple rising from $7 a share early on to $400, there's a lot of "shoulda, coulda, woulda" in the market. Start by doing your homework. The key is spotting the cash cows early. Here's how to walk out rich.
SCALE
The business has to have the potential to grow, grow, and then grow some more, says Andy Obermueller, a portfolio strategist for StreetAuthority. When you find a company with a market that seems endless and a product that is innovative, you likely have found a winner. Consider Green Mountain Coffee. It jumped on the Keurig cup idea early and captured much of the market.
OWNERSHIP OF A DEMOGRAPHIC
Look for a company that's targeting a particular market. If it's well positioned to dominate, the odds of success are good. If a company has potential access to an underserved market, it also has access to untapped wealth. Take Urban Outfitters. It created a blueprint of expensive sweatshirts and denim that tapped a valuable market of affluent youth. That's right Affluent youth have great buying power. They use their parents money. And they are more interested in keeping up with their friends than anything else. This a Great Investors market for those who want to be safe with their investment dollars.
DISRUPTIVE TECHNOLOGY.
Look for patents—a company's ownership of intellectual property gives it pricing power. The archetype for disruptive technology is a drug company with no revenue and no product but a strong drug in development. When that drug is granted FDA approval, the company can become a billion-dollar business. This happened with Genentech in the early 1980s. Or consider Technology Trends in 2011
Allow me to introduce you to the CASH FLOW Quadrant. For those of us who understand this and do something extra about jumping from the left side (Employee and Self Employed) to the RIGHT side (Business owner, Investor) will be able to make a huge difference in your life and your family's life. Many do not understand this. It is why 95% of us in the work force are still dependent on having someone else fill in our paychecks.... only those who understand how cash flows, always to the Rights, top to bottom get rich.... at the very least more secure. Sounds different?
Yes, to become Rich you have to get to the bottom Right where all the Investors reside and thrive. You can start working on a plan while you are still employed... just as long as you invest your hard earned money wisely you will be successful. Lets face it, would you rather be having a conversation with the next generation about how you made you first Million dollars while working 9 to 5, instead of how you wish had taken some risks that could have improved your life. Start planning now and do some research on how.
Here are 10 things not to do with your money.
- Don't buy what the media is selling: Fear
- Don't finance your child's education with retirement savings
- Never give money to an acquaintance who just 'got into the business'
- Don't try to catch up by raising the risk level
- Never invest blindly without a true plan
- Don't loan money to friends and probably not to family
- Don't save an inheritance for your kids
- Be smart with your inheritance
- Don't buy the old market story of 'buy and hold,' which has become 'hold and pray'
- Don't get on the ride before you know how wild it can be.
I remember the old EF Hutton commercials and think its time to start listing to the right investment advise. Like Bill Cosby for EF Hutton...... "because it's my MONEY"
