Categories

Investing Observation & Opinion

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    Investing In The American Energy Renaissance
    A 3D-printing Business That Will Sell You A Hyperrealistic 6-inch Statuette Of Yourself Is Actually Doing Well
    Stocks Inch Lower Ahead Of Yellen’s Jackson Hole Speech
    Bitcoin ATM Opens In Manhattan In West Village
    Keurig Green Mountain Shares Rally As Company Inks Deal With Kraft
    Jordan Helps Foot Locker Score A Slam Dunk
    American Airlines To Charge A New Fee For Unaccompanied Minors
    Twitter Tops All In Culture And Values, Employees Say
    LinkedIn Products Head Announces Departure
    Home Depot CEO Stepping Down; US Retail Head Gets Top Job
    13 Tech ‘Old-Timers’ Spank Whippersnappers
    Gold Bonds’ Glittering Future
    14 Stocks That Hold Up Best At Market Highs
    Gold & Bond Yields Slide As Stocks Continue Hawkish Surge
    New York Fed: ‘Could The Dollar Lose Its Reserve Status?’


    What I Learned From A Stock That’s Up 1,300 Percent

    Years ago, my dad and I were driving across his farm in his vintage Land Rover, which looks almost exactly like the one John Wayne used in the movie “Hatari.”

    The heavy-duty off-road tires were having a hard slog through the mud. Dad had cut across a recently plowed field rather than taking the long way back to the road. The tires made slow and steady progress — Dad’s old Rover is a tank — and after a few minutes and probably five gallons of gasoline, the nose of the vehicle bounced up and the tires bit into the country lane that circles the property.

    Dad, clearly pleased with himself for conquering the field, didn’t take his foot off the gas. We were soon going nearly 70 miles per hour down a country road with grass in the middle of it. He looked over to me and grinned.

    "That’s what happens, son," he said, "when the rubber meets the road!"

    It became a sort of catchphrase between us. Whenever something really took off, one of us would say, "Well, looks like the rubber met the road," and we’d both remember the roar of the Rover as we shot down the road by the farm all those years ago.

    I bring up this story because it is in my mind a lot these days.

    Most of you know me as the chief strategist of Game-Changing Stocks. The entire focus of my advisory — and my investment philosophy — is to find those situations where the "rubber meets the road." I’m talking about those profitable instances where a company, technology or trend is really about to soar.

    And while the goal sounds noble, my earnest intentions mean nothing if I don’t have a method to fit my aims. Of course, I do have a method. And the best news is that its main tenets aren’t difficult to put to work in your own portfolio.

    First, research is the only way you’ll successfully find the next big thing. Most game changers are ignored by media outlets until they’re bigger trends. By then, the opportunity for the biggest profits has passed.

    And believe me, I know whereof I speak. I was a business writer and editor for years at some of the Nation’s largest papers. By the time you read a story in The Wall Street Journal or Forbes or Barron’s, the smart money is already in and scoring profits.

    Now, I have a pretty big advantage over most investors. Much to the benefit of my readers, it’s my job to research these ideas. Most people simply don’t have the time.

    My office is filled with clippings, newspapers, Securities and Exchange Commission reports and magazines lying just about everywhere. (I read just about anything I can get my hands on.)

    But research is only one part of the process. To profit the most from game-changing ideas, you also have to be an investor.

    Now, we all consider ourselves investors — after all, we buy stocks, right? That’s not quite what I’m talking about.

    When you hear about game changers, I’ll bet you think of stocks that rise dramatically nearly overnight. You buy in, hold for a few weeks or days and then sell after a quick run-up. But in my experience, real game changers see strong returns for months and years.

    Look at shares of Apple (AAPL). It was just eight years ago when shares traded at $27. Now they’re at about $450. That’s a gain of better than 1,300 percent.

    Despite a recent drop in the stock, shares of Apple have soared since 2005.

    And if you look at the biggest winners in the market’s history, then it’s the exact same story.

    Wal-Mart (WMT) didn’t grow to a national presence overnight. Its shares didn’t soar for just a few weeks either. Microsoft (MSFT) may have grown quickly, but even those with the foresight to buy shares in the 1980s wish like hell they had hung on to them.

    Action to Take —> As long as the trend behind an investment is still moving positively, I want to be profiting from it. And I have no problem seeing profits build year after year after year.

    P.S. — The abundance of natural gas in the United States could lead to a third industrial revolution. One analyst is predicting a stock could rise $1,566 percent. Another stock has already jumped more than 1,000 percent and is expected to keep going. To learn more about investing in the natural gas boom, click here.

    Andy Obermueller

    This article was originally published on Feb. 1, 2013, at StreetAuthority.com.

    Andy Obermueller is the Chief Investment Strategist for Game-Changing Stocks. He spent ten years as a financial journalist, working for some of the nation's largest newspapers. At the business desk of The Star-Ledger, his market acumen helped guide the financial news read by more than a million people each day. After watching business from the outside for ten years, Obermueller got an inside look as a commercial lender with Wells Fargo's Business Banking Group, where he worked prior to joining StreetAuthority.

    | All posts from Andy Obermueller

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    China Push For Gold Pricing Power Continues, Grant 3 New Import Licences
    The Secret Reserve Currency Life Of The Renminbi
    Free Money For Germany Is Bad News For Euro
    Target’s Troubles Go Deeper Than Data
    The Investor’s Definition Of Insanity
    DLTR, SHLD Top Thursday’s Hot Stocks To Watch
    The Apple-IBM Deal Has One Clear Winner: You
    U.S. Jobless Claims Fall, Bolster Labor Market Outlook
    Family Dollar Rejects Dollar General Offer On Antitrust Worries
    After Russia Targets McDonald’s, Businesses Wonder Who’s Next
    Fed’s George Says U.S. Economy Is Ready For A Rate Hike
    Futures Edge Higher Ahead Of Jackson Hole Meeting, Data
    Sears Posts Loss For 9th Straight Qtr As Sales Fall Again
    Euro Steadies At 11-month Low As Dollar Reigns
    Business Growth Slows In China And Europe, Russia Sanctions Still To Bite
    China Taps South Korea For Ideas In Qualcomm Antitrust Case
    China Economy Fears Deepen As August HSBC Flash PMI At 3-Month Low
    Icahn Reveals Stake In Hertz, Plans To Push Management
    Growing Up Poor Affects Adults’ Sense Of Control, Impulsiveness When Faced With Economic Uncertainty
    China Becoming Global Gold Hub And Gold Price Discovery Center
    China Bond Default Risk Reignites, Despite “Never Anticipating Any Risks”
    Gold’s Sudden Ignorance Of Geopolitical Risk
    Why So Much Anger In Ferguson? 10 Facts About The Massive Economic Gap Between White & Black America
    Jack Lew’s Worst Nightmare: China’s Currency Should Be 20 Percent ‘Weaker’
    Fed Fueled M&A Destroys Capital
    Market Snapshot: U.S. Stocks: S&P, Dow Edge Lower Pre-Fed Minutes; Target Drops
    Americans Pay Too Much For Bad Data Plans
    U.S. Mortgage Applications Rise In Latest Week
    Staples Says Weakness In Core Office Supplies Hurting Sales
    Home Improvement Chain Lowe’s Cos Cuts Sales Forecast
    Read more from Investing...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.