Turn $100 Into $100,000 by Active Investing Like a Pro
- “Passive investors” — who buy index funds that track the overall market — make up about half of all investors today. But “active investing” can be far more lucrative, leading to double-, triple- and even quadruple-digit gains.
- Here’s how to be an active investor, plus an investment tool that will let you beat the market 2-to-1 or more.
“All I knew is that I never wanted to be average.”
That quote from basketball superstar Michael Jordan is a philosophy that should inspire investors.
Jordan played basketball the way we want to invest here at Bold Profits… above average.
Unfortunately, half of all investors just want to be average — based on the way they are investing.
I’m talking about “passive investing” — buying index funds that track the overall market.
By contrast, active investing is what is commonly referred to as “stock picking.” Active investors are the ones who drive the market, while passive investors are just along for the ride.
And now, for the first time, money going into passive investment vehicles has exceeded money flowing into active funds. Which means investors have largely given up on trying to beat the market.
Now, it’s true that historically, most stock pickers have underperformed the S&P 500 Index. But that’s not the best strategy. The challenge is to identify the companies early that will appeal to other active investors — and get in before they do.
In other words: Follow Michael Jordan’s advice.
Buy Into Companies “Disruptifying” Traditional Industries
At Bold Profits, our strategy is to do exactly that — by keying in on companies that are “disruptifying” traditional industries.
Like Amazon did. And Google. And Facebook. And Netflix.
These are the new-world companies that are replacing the old-world blue chips of yesterday.
If you don’t believe we’re experiencing a historic remaking of the market, just look at the companies that were the superstars of the original Dow Jones Industrial Average index, founded in 1896.
U.S. Leather Co.: gone.
National Lead Co.: barely alive — it no longer trades on any major index.
General Electric Co. is the only member of the original Dow Jones Index that is still a major company. And the company’s struggles are well documented — it is no longer considered important enough to be in a major index.
The point is that times are changing, and new companies are replacing the old guard. We call that “disruptification,” and it’s happening at hyperspeed these days.
In fact, our Bold Profits “Disruptification Index” of such companies is beating the S&P 500 2-to-1. Take a look:
So while the majority of investors are now buying S&P Index Funds, we at Bold Profits are beating the market with the new-world companies that will be the blue chips of tomorrow. Our current gains are just the tip of the iceberg.
Some of the disruptive companies that will be behemoths of the S&P 500 in a decade or two are trading on the New York Stock Exchange and Nasdaq Composite Index right now. Others are private and backed by venture capital money, planning their grand entry into the market — through initial public offerings (IPOs) — in the next year or two.
Amazon was once one of those companies, and look at where it is today.
If you had invested just $100 in Amazon’s IPO, it would be worth more than $100,000 now.
People laughed at Jeff Bezos’ vision then, just like there are people laughing at some of these disruptors now. You only need one of those in a lifetime to be above average.
If you want to own the next Netflix instead of sitting in Blockbuster, you have to become an active investor, you have to look into active investing.
One way to do that is by subscribing to IPO Speculator. There’s no better opportunity to get in at the ground floor than by investing in tomorrow’s blue chips at IPO prices.
To review our full strategy on picking IPOs set to become the next Amazon, click here. Keep following Bold Profits as we guide you to the mega trends of tomorrow and the companies driving them.
And like Michael Jordan, don’t settle for average.
Until next time,
Editor, IPO Speculator