This month marks the 20th anniversary of a turning point in the history of technology investing.
Mary Meeker and Chris DePuy were analysts at Morgan Stanley in the fall of 1995 when they issued their landmark Internet Report.In it, they showed how the Web would transform the entire economy while making fortunes for savvy investors.
Because Morgan Stanley was the firm behind the wildly successful Netscape Communications initial public offering, investors clamored for a copy.
Demand was so intense that in December 1995 the Internet Report was officially released in book form and quickly became a best seller.
The Report turned out to be prescient, indeed. It not just foresaw the way the Web would become a high-tech and economic force, but also foreshadowed the Mobile Revolution we’re living through today.
However, one thing Meeker and DePuy didn’t see coming was the rise of what I call theNew Internet “Dream Team”- a quintet of firms that dominate key segments of a market sector worth a combined $2.6 trillion.
Instead of fighting the hordes over Thanksgiving weekend – either online or at the mall – I found myself new car shopping.
While I figured my “ski mobile,” a 2005 Acura MDX SUV, could last another two years or so, there I was, steering into a dealership about half an hour from the Robinson household.
And there I saw a brand-new 2016 MDX on the showroom floor.
What can I say? It called to me.
But what does this have to do with tech investing – what I assume you’re here for?
As the salesman showed me such features as integrated Bluetooth, voice-activated navigation and touch-screen “infotainment,” I realized I was shopping for technology as much as I was shopping for a new car.
My inner “gadget geek” kicked in – and I had to take the MDX out for a spin.
And after cruising around and checking out some of the Super Handling advanced driver assistance systems (ADAS), I was hooked – and picked it up.
I’m far from alone. Millions of consumers cite advanced auto technologies as a key reason they’re buying or leasing now.
Today, I’m going to show you how to profit from this massive trend.
No, I’m not recommending Acura (or any other carmaker).
But I’ve found a small, little-known firm whose technology is already in 25 million vehicles on the road today.
We often turn to my five rules for tech investing success to see which stocks to buy.
But those same rules will also help you figure out which “turkeys” to avoid.
That’s a critical part of the game. Because in investing, “job one” is to make sure you live to trade another day. So a huge part of your long-term success comes down to not losing money in the first place.
I wanted to talk with you about this today because I’m picking up a ton of online chatter claiming that a certain pharmaceutical stock has become a screaming bargain.
And sure, it sounds like a bottom-feeder’s dream come true. Since its Aug. 5 high, the stock has dropped more than 65%. If it regained just 69% of its previous high, it would double.
But don’t believe the hype.
I ran this stock through the five rules in Your Tech Wealth Blueprint, and what I saw was a deeply troubled company you should stay well away from.