How to Find "The Next Great Thing" Every Time
If you missed out on the boom in Internet stocks, don't worry. There are always more mega-profits just around the corner - if you know where to look. Take a look at the following article:
This chart illustrates a cycle that every product and industry goes through - without exception.
It begins with the introduction phase, where time and money are spent building awareness in the marketplace. Then it goes through the growth phase, where sales take off . and finally the maturity phase, where demand for the product levels off.
Pretty basic stuff. But here's the remarkable thing: Even though the growth phase accounts for the least amount of time, it accounts for the lion's share of the profits - as much as 85% of the total!
In some industries, the bulk of the profits come in just a few years! Take the fax machine, for example. Did you know that fax machines have been around since the 1940s? It's true! Yet for four decades there was no market for them. Fax machines didn't enter their growth phase until the 1980s. And by the 1990s, they had already reached the maturity phase, with lower demand and lower profit margins.
So the trick to making money is getting in during the growth phase and getting out during the maturity phase. Fortunately, this is pretty easy to do. All you have to do is look at industry sales figures. If you see accelerating growth from year to year and from quarter to quarter, you know it's time to get in on the action. And if you see that growth is leveling off, you know it's time to get out.
Current growth figures show that the Internet is at the earliest stages of the growth phase. That means the greatest profits are still to come!
For more advice on how to make greater profits with less risk, subscribe to Stellar Stock Alert.
How Richard Schmidt Finds His Stellar Stocks
