Today the future is in sunrise industries like wireless enabled devices, broadband internet, alternative energy, and biotechnology. In the not-too-distant future, the hot industries might be nanotechnology, robotics, space travel, and interactive virtual reality games.
We typically find that the best investment opportunities are stocks of companies within emerging and growing industries, where the sun is rising. These companies are characterized by rapid sales growth, high levels of innovation, motivated entrepreneurial leadership, and a willingness to enter and dominate smaller niche markets. For the long-term investor, this is a good neighborhood in which to go shopping.
There is much more to finding a great investment than just finding companies with products that seem like they'll be popular in the future. There are hundreds of public companies with interesting new ideas that will unfortunately never succeed.
|You need an
analyst who can do the homework, scour the financials, evaluate the
products or services, assess the management talent,
and properly appraise what a company is worth. At Bon Investments,
we use publicly available and proprietary valuation tools to find
quality companies that we believe are undervalued and worthy of your
Our search for quality companies that are undervalued sometimes leads us to names in the micro-cap space. Micro-caps are smaller companies (usually less than $500 million in market capitalization) that often get ignored by the larger investment managers. Micro-cap stocks are more apt to be mis-priced than are the larger company stocks, in part due to a lack of research coverage, and micro-caps can sometimes sell at deep discounts to their true intrinsic or private market value. This is why we are big believers in adding some high-quality micro-cap stocks from sunrise industries to the mix in our managed portfolios.