Hi Jack, In Mr. Phelps' book on page 177 he talks about the 7 most common "hunting grounds" for potential 100:1 stocks. This list is based upon 40 years of his personal experience in the market.......
"1) Inventions which enable us to do things we have always wanted to do but could never do before. Past examples: The automobile, the airplane and televisions.
2) New methods or new equipment for doing things we long have had to do but doing them easier, faster, or at less cost than before. Past examples: Computers and earth-moving equipment.
3) Processes or equipment to improve or maintain the quality of a service while reducing or eliminating the labor required to provide it. Past examples: disposable syringes and sheets in hospitals, frozen foods, and document copiers (Zerox).
4) New and cheaper sources of energy such as kerosene replacing whale oil, fuel oil replacing coal, etc.
5) new methods of doing essential old jobs with less or no ecological damage. Past example: The use of sterilized insects to wipe out a pest rather than employing chemicals harmful to many desirable forms of life.
6) Improved methods or equipment for recycling the materials, including water, required by civilized man.
7) New methods or equipment for delivering the morning newspaper to the home without carriers or waste." (remember, he wrote this in 1972! I read the Milwaukee Journal each morning, but on the computer!)
There's some food for thought here. It points to the concepts that we have to think very long term.
As a last quote, "Most people try to make a few points quickly on their stock market speculations, but not one in a thousand seriously plans and acts as one must to make a fortune." - Thomas W. Phelps
Best regards, Tom |
