...That wasn't a bad idea if you bought Coca Cola, Kraft, Carnation, Nestles, General Foods and General Mills to name a few. My kids were watching videos all the time and what were they watching? Disney of course. Today it isn't quite that easy but it's not as difficult as it might seem. Short of owning Facebook and the soon to be public Alibaba it isn't that simple either.
Start with what you know, not with you don't know. In building a microcap portfolio you should look at your own everyday activities, for example, what are you wearing, what devices do you use, where do you shop, what's trending on social media, what companies are hiring your friends, what's the buzz within your network, think about disruptive technologies like solar, wind, new lasers, 3D printing, entertainment, homeland security and video games.
Another trick of the trade is how to use information in everyday news. We read about a big acquisition by a name brand - I mean Warren Buffet bought See's candy; who knew he was a chocolate freak, so he bought the whole company. Peltz bought companies his kids loved, like Wendy's. If smart money is buying #1 in the sector, which company is #2 or #3 in the sector? What company supplies #1 company it's technology? There is a method to the madness, we each have our own internal sphere of influence, use it!
As I age, I now pay more attention to healthcare, pharma, biotech and life sciences. Today, there are so many biotech startups. I feel cures for some of the biggest killers, like cancer, are almost here, or closer than ever before in history. I pay attention to new developments, like the curing of Ebola or discoveries to unlock new therapies.
Another important insight can be gained from your own professional career. What new software, hardware, cloud, communications, health club, have you been using daily? Stands to reason if you are using it constantly, so are your friends, family, coworkers, competitors and your customers! That spells revenues, revenues attract investors, investors want public stocks, let's go find some!
The whole point of this strategy is if the company is attracting your buying and your peers buying, the revenues will eventually reflect potential or actual profitability, and stock appreciation. Sometimes simplicity can work. You have a question for Ask Mr. WallStreet? Ask us on Twitter - @StockNewsNow #AskMrWallSt
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