Earn money swimming with the tide
Catch of the day: âTo swim a 100-meter fast, it’s better to swim with the tide than to work on your swim. – Warren Buffett
Her father was a snake oil salesman and womanizer who wasn’t home much.
So, he was brought up in a single parent home by his mother. And to help his mother make ends meet, this young man raised turkeys and sold potatoes. He also did his share of the housework to help around the house.
When he finally entered the workforce, he started at the bottom of the ladderâ¦ as a clerk at a Cleveland shipping company.
A few decades later, John D. Rockefeller would become the richest American of all time and the richest person in modern history.
In today’s dollars, he has amassed nearly half a trillion dollars. At the peak of his wealth, his fortune was worth nearly 2% of the national economy.
In the business world, Rockefeller is considered one of the greatest of all time.
As the founder of the Standard Oil Company, he drastically reduced the cost of oil production. At its peak, the company controlled 90% of all oil in the United States
Rockefeller succeeded in revolutionizing the oil industry because he saw what few others did: Global demand for oil would skyrocket as the world entered the industrial age.
In other words, he took advantage of an industry with a huge tailwind behind it. And it’s a very consistent way to make a profit …
The approach behind the greatest of all time
Jeff Bezos is currently the richest person in the world, with a net worth of over $ 200 billion. Even investment legend Warren Buffett has called Bezos “the most remarkable businessman of our time.”
Like Rockefeller, Bezos is one of the all-time greats in the business world. Despite having made their fortunes more than a century apart, they used the same approach to get there …
They created businesses that were in industries with huge tailwinds.
Bezos did this with the Internet instead of oil. He saw a statistic that web usage was increasing by 2,300% per year. Based on this incredible growth, Bezos was looking for a product to ride that tailwind.
So he started selling books. And that’s how Amazon got its start, before taking advantage of favorable winds in the internet industry to dominate online retailing. And Bezos has also dominated another industry, cloud computing.
Both men saw how choosing the right industry can have a huge impact on generational wealth creation. Finding the right industry with a strong tailwind can make all the difference.
And when it comes to investing, the best shortcut I can give you is to invest in companies that are in sectors with strong tailwinds …
The first thing to look for when investing
Having a strong tailwind is the key to making exceptional gains in the stock market.
That’s why, throughout my nearly 40 years of investing experience on Wall Street, the first thing I look at when looking for a company is the industry in which it is located.
Because I don’t want to own the best-run newspaper business. The same goes for DVD and video game rentals and the retail sale of bricks and mortar.
It doesn’t matter how good the CEO is or how hard he triesâ¦ in the long run, these are companies that are in industries that keep getting smaller and smaller. They swim upstream and struggle against headwinds that are almost impossible to overcome.
That’s why I spend my time trying to understand the factors that drive the business and, above all, what can destroy it. I wonder: does the company have a strong tailwind to move it forward?
Because, just as Rockefeller and Bezos saw firsthand, it’s a lot easier to grow a business that has a strong tailwind.
I’m looking for industries that have growing demographic and secular trendsâ¦ such as healthcare, 5G technology, and cloud computing.
|Health care||The huge baby boomer population will increasingly need health care services as they age.|
|5G technology||5G is the next step in keeping all of our many devices connected and functioning properly.|
|Cloud Computing and Networks||Data generation is increasing by leaps and bounds every year, making managing data through the cloud more important than ever.|
These industries have everything in their favor. That’s why, to take advantage of it, I’ve recommended companies such as HCA Healthcare (NYSE: HCA), Marvell Technology (Nasdaq: MRVL), and Arista Networks (NYSE: ANET) to my Alpha Investor readers.
HCA is the largest non-governmental operator of hospitals in the United States. Marvell manufactures the semiconductor chips needed in many 5G devices. And Arista is the leader in cloud networking hardware and software.
Today, all three stocks have climbed well above my recommended buy prices. They are recording gains of about 118% in eleven months, 195% in two and a half years and 128% in one and a half years, respectively.
Now these are big wins for Alpha investors. If you have taken advantage of these ventures, congratulations!
But I found a way to turbocharge those returns to make faster and higher gains.
And over the next week I want to show you how. I see one industry in particular with huge tailwinds pushing it higher over the next few years.
I’ll share it with you, so be sure to keep an eye on your inbox for my next deep dive.
Founder, Alpha Investor