This Is 1 Fight You’ll Almost Always Lose in the Market
- Blockbuster was a place of cherished memories for lots of people.
- But then, Netflix came along and disrupted the movie rental space.
- Here’s why fighting the headwinds is no good for businesses — or your profits.
As a kid, there was nothing I loved to do more on a Friday night than go to Blockbuster with my dad.
We’d walk up and down the aisles, looking at the many VHS tapes on every shelf. My dad would point out his favorites, and I would demand to carry them around the store.
Each trip would end with narrowing the stack down to one or two movies and picking out a candy for our family movie night.
Fast-forward to today, and Blockbuster is nothing more than a cherished memory.
Once Netflix started to gain popularity, the video rental store faced a major problem. After all, who would go back and forth to a Blockbuster when they could easily rent online with Netflix?
In the end, the pressure proved to be too much for the once-loved rental store. It filed for bankruptcy in 2010 and folded soon after.
Unfortunate as it may be, it’s a classic example of why you should invest in a business riding a tail wind — not one fighting a headwind…
Ride Tail Winds Instead of Fighting Headwinds
One of the keys to finding success in the stock market is to look for a business in an industry with a major trend propelling it forward.
And after spending 37 years in the market as a former floor trader, hedge fund manager and money manager, no one knows this better than Charles Mizrahi.
As he puts it: “A rowboat with hurricane-force winds at its back will go faster than the Queen Mary facing gale-force winds.”
Now, Charles calls this key the “Alpha Industry.”
And finding an Alpha Industry is so important that he won’t even touch a business that isn’t part of one — like Blockbuster in the early 2000s.
That’s why he looks for businesses that’ll profit from riding the tail winds of mega trends instead … industries like the technology sector today.
And Charles often shares one way to profit off this Alpha Industry. He likes the Vanguard Information Technology ETF (NYSE: VGT).
This exchange-traded fund (ETF) has some of the biggest tech names in its top holdings, including Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT) and Nvidia Corp. (Nasdaq: NVDA).
Now, this ETF will give you broad exposure to the tech sector. But Charles pinpoints some of the best tech stocks out there in his Alpha Investor portfolio … ones that could hand you huge gains.
And if you want access to his entire portfolio — packed with businesses in Alpha Industries — just click here to subscribe and become an Alpha Investor today.