Last night at Border’s I passed by a shiny green book entitled “Finding the Next Starbucks“. Pretty catchy title.
Smart dude wrote it from Think Equity Partners. Here’s my major problem…
Starbucks is currently the next Starbucks. The book is a long fancy way to do what you could do 3 minutes a day without reading a book. The best way to find the next Starbucks is religiously comb the all-time high lists. You don’t need books. New Starbucks show up on the all-time high lists each and every day. Over at Wallstrip and in the right sidebar below, I offer up the daily all-time highs wth the help of Trade-ideas.com.
That is the book – in widget form. I offered $1 for the cool title and offered the gal at Borders the chance to buy my sleeker 2 page version. No dice. Her loss.
Once you glance at the all-time highs it is important to look and research for stocks in groups so as to narrow down your search and for those stocks that have fast growing businesses – even choosing businesses you may better understand.
NOW comes the tough part. Forget finding the next Starbucks, how do you stay with it to make the most possible money off your vision and work.
MONEY MANAGEMENT – the part of the story that these books leave you to your own wits.
If I could preach one method of investing, it would be to scan the all-time high lists and narrow your selection down to the names with the most unique growth opportunities and than focus on systems that allow you to ride the stocks as long as possible. The system will likely mean lot’s of smaller losses, but you will have the big gains. Finding is not NEARLY AS DIFFICULT as riding them.
Lot’s more needs to be discussed on this subject.
My freind’s at Blackstar discuss trend following for stocks – in their whitepaper – in the right sidebar (blogroll). read it, print it, read it again. It is not that hard.