By: Bill and Cindi Porter, AILERON INVESTMENT ADVISORS
Q: What kind of new companies might be good investment opportunities?
A: Several types of companies. We may have all wished we had been fortunate enough to have invested into Microsoft, Apple, or other successful tech companies when they were new. Tesla and other battery related companies are somewhat recent examples which have rewarded visionary investors in the energy sector.
Yet everyday products which are innovative and used by numerous consumers also offer the potential for investment gains. If you see a new product which you really like and think that it would appeal to your friends and neighbors, after proper research you might consider buying some of the company stock if it is available for purchase.
A few examples are useful. In 1917, S. Duncan BLACK and Alonzo DECKER, patented a handheld, portable, pistol gripped drill for single hand use (inspired by a Colt 45 automatic pistol). In 1924, a small group of Chicago hardware store owners banded together and formed ACE Hardware. In 1933, Henry Phillips formed the Phillips Screw Company and soon the unique screw was used to assemble Cadillacs – and now many other things.1
None of the examples above involved hugely transformational technology such as today’s tech giants or a completely new power system for automobiles like Tesla, but they did all fill a profitable niche which rewarded the investors who saw the market potential. Today we see many new companies such as Door Dash, Favor, Uber, Lyft, and UberEATS just to name a few. Like Black and Decker and ACE Hardware perhaps some of these and other new companies may (or may not) become long-term staples in the American marketplace, and thus may offer potential investment opportunity. Including potentially up and coming companies in your portfolio is a good topic of conversation for you and your trusted advisor.
This is for education only. Before using this information in any way discuss it with a financial professional. There are many risks associated with stock trading. You may lose some or all of your financial investment. Securities offered through Dempsey Lord Smith, LLC Member FINRA/SIPC. Securities offered through Integrated Financial Planning Member FINRA/SIPC. Advisory services offered through Dempsey Lord Smith, LLC. All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.
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All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.