ILNK: The Importance of Disruptive Technology and Lower Prices(2)
by: Glotech (49/M) 4/24/00 5:48 am
Msg: 26972 of 27072
But that's exactly what happened. And it's happening today, too. How many mutual funds got in on the Internet boom? Not a single one! Not Janus or Fidelity or Vangaurd! And the hedge funds missed it too. Soros lost billions in Russia while the technology and Internet companies all took off.
On the other hand, if you had known the simple secret of wealth that I am going to share with you, you wouldn't have missed the opportunity. Just look at what this simple principal has done for other investors recently:
1. It led Gary Winnick, an investment banker with mixed track record, to turn $15 million into $4.5 billion in just 18 months.
2. The same principals led Pierre Omidyar-a man without financial background-to create a $6.7 billion business in just three years. He's now worth over $10 billion, making the Forbes 400 with three years work.
3. What about Henry Nicholas and Henry Samueli? These two friends from grad school learned how to cash in on their high tech knowledge with this principle for windfall gains. They've made over $2.7 billion each in less than five years.
4. The investors in I-Link discovered the same thing when they bought in for $3 per share in January of this year and three months later stock was trading at $18 per share-a 500% gain.
Those aren't misprints. Were talking about making billions in just a few years. Consider this: it took John D Rockefeller an entire lifetime to build his fortune-$15 billion by 1913. Meanwhile, in today's economy, Winnick could make that much in just five years.
So why does Wall Street consistently miss these opportunities? Is it because they are too preoccupied with outdated company statistics, like debt-to-equity ratios? Professional investors continually use old paradigms-models that worked 30 years ago-to judge future opportunities. But that's like driving your car by looking in the rearview mirror. It just doesn't work.
Instead, investors need an accurate way to measure a new business's potential-not its past. And that's what this secret to wealth does. Once you know this secret principle, you don't have to worry about a company's debt or PE level any more.
Craig McCaw certainly doesn't worry about debt. He took a tiny Washington cable company on the verge of bankruptcy and used expensive debt (from Michael Milken's junk bonds) to create the largest cellular phone network in the U.S. Then he sold it to AT&T for over $14 billion, making him one of the country's richest man. And today he is doing it again?
Wouldn't you like to know how to buy companies like that? Don't think for a minute that these guys have some special talent that you and I don't. These great investor's advantage is simple: they know something that most Americans-including Wall Street's economists-don't. Once you know this secret to wealth, investment profits are much easier to come by.
Business schools don't teach you: "The Importance of Lower Prices and Disruptive Technology."
I've shared with you several real life examples, but you're probably not convinced that all those men made all of that money using exactly the same investment strategy. But They Really Did.
It's fascinating that this secret isn't well known, or widely recognized because it's the most important principle of capitalism. It's the reason why fee markets are superior to planned economies?
But the most interesting thing is that this secret to wealth is so simple. Here it is: "The Best Investments Cause Massive Reductions in Consumer Prices." That's it. That's all there is to it, but of course, delivering massive reductions in price isn't easy. However, when you find the entrepreneurs who are doing it, then you know you've got a winner.
continued.......
Glotech |
