When you make an investment, no matter how big or small, there is always the chance that this investment could be the investment of your lifetime.
Whether it is likely or not is irrelevant. Because none of us has a crystal ball.
What’s important is that it very well could be.
Here’s a great example of what I’m talking about…
One of the best investors in the world is a firm called Baillie Gifford. Baillie Gifford primarily invests in founder-led, disruptive companies that come to market as well as those that have been around for years.
In the early 2000’s, right after the dot.com bubble, Baillie Gifford invested in eBay (NASDAQ: EBAY) and Amazon (NASDAQ: AMZN). At the time of their investment, they had more confidence in eBay than Amazon.
Over the next 20 years, of course, Amazon would turn out to be the far superior investment – up over 17,000% since 2002, while eBay is up a little over 400%.
In 2002 I was a market maker working on a trading desk. I don’t recall one person there who felt Amazon would be the better investment over time. Not one.
As investors, we become owners. You may not look at it that way, but we are owners when we buy shares in a company. Our goal is to find the best investment opportunities we can.
We try to find first movers in an industry that is evolving, and take a partial ownership stake.
When we buy, our timeframe is long. Ten, twenty, thirty years or longer.
If you can do this, truly great companies will reward you handsomely over time.
Here is a list of quality companies that became the greatest investment of a lifetime for some people:
1. Home Depot (NYSE: HD) disrupted hardware stores by having everything under one roof, as well as low prices.
2. Walmart (NYSE: WMT) disrupted brick and mortar retail by offering the lowest prices.
3. Southwest Airlines (NYSE: LUV) disrupted air travel by offering the lowest prices and great customer service.
4. Costco (NASDAQ: COST) created a new business model in which you pay for the privilege to shop in their store.
5. Monster Beverage (NASDAQ: MNST) became the lead dog in the energy drink space.
None of these are companies that anybody thought would turn out to be investments of a lifetime.
Just find a business you like and get invested today.
Click the image of the book at left to be taken to its Amazon page. (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)