The Next Big Thing Is Actually Quite Small – Spotting an Investment Opportunity

One of the best investment strategies is to be early. ideaSpot a trend in its infancy and capitalize on what you believe will occur down the line. For example, I remember when I heard that Newark, NJ was going to get a new sports arena. I don’t how much you know about Newark, but chances are its probably bad. Riots, violence, crime, gangs, murder, Newark’s image is pretty bad and this arena was meant to revitalize the city and turn things around. 

So here you are its 2002 and you have just read in the newspaper that Newark is getting this massive state of the art arena. What do you do? What is the smart move? I met a man in 2006 who capitalized on this. As soon as he heard about the arena he bought an empty lot two blocks away and built a big beautiful bar. He was told the arena would open in 2007 and he had his place up and running the year before. He knew that the Devil’s would call that arena home and his place would be packed with hockey fans or concert goes many nights a year.  His place was so close that people could park near by and would pass his establishment on there way to the arena. He saw and opportunity and grabbed it. 

The stock market works the same way. Right now social media stocks are on fire. Two years ago you could have bought Facebook stock for 18 bucks, now its over 50. In the 90’s internet stocks exploded. Google IPO’ed for 80 dollars, look at it now. In almost every case the news came out as a trickle and then turned into a flood. If you pay attention early on you can beat the crowd.

That’s all good and fine, but where is the future. Looking back is easy, where is the next trend. I believe from what I have heard and read that the future is so small that you can’t even see it, Nano technology. Smaller than a cell Nano technology aims to fix big problems using tiny solutions. It may be possible to dramatically increase the capacity of a battery using Nano particles to improve its chemistry. Sounds complex? Let me simplify, with this technology you could improve your smart phone battery so much that you would only have to charge it once a week. What is that worth? 

Nano particles could be used to detect and treat disease, improve the strength of building materials, making cars lighter and safer, cleaning up chemical spills. We are on the cusp of a revolution. It has been identified, we are early, now we have to figure out what to do. Who are going to be the leaders of this radical new technology? The answer to that question is going to make some people very wealthy. Right now, time is on our side, we are ahead of the crowd. The best thing to do is to keep your eyes open, keep that word “Nano” in the back of your mind and when you hear it pay attention. Be ready to seize the opportunity. 

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