I haven’t been a very active “trader” in the past few years; I’ve started to focus more on low cost investing (if you’re looking to save money on trading costs and get a $100 bonus to boot, OptionsHouse is the way to go-use link for promo code), the occasional market inefficiency trade (pairs trades, hedging gas prices, etc) rather than trying to beat the market with picking stocks since the reality is even the best and brightest in the world (while being paid millions per year) cannot do so over a prolonged period. As such, I’m the first to admit I’m a mere mortal and don’t focus much effort on individual equities like I did in my earlier days. However, occasionally, I pick up on a secular trend I see. This would be something larger than a typical “hot stock” or “tip”, but rather an emerging trend in society, a company with a lock on a truly innovative product or something along those lines. Examples include the 200%-500% gains I’ve made over the past few years in stocks like Apple (I sensed the iPhone would change the world, and it did), Netflix (back when they were the only game in town and before Reed Hastings drove them into the ground with dumb pricing and strategic decisions), Chipotle (when they were opening up stores on every corner) and BIDU (the Google of China). That’s not to say I haven’t had my fair share of losses to balance them out, but you get the point. If you pick some real game-changers, or even just one, it may well be worth hanging on to.
The Future is 3-D Printing
Starting this summer, I’ve been routinely tweeting about 3-D printing and how it’s a real gamechanger. I’m not going to rehash what I’ve written, tweeted previously and it’s all laid out much more eloquently here – Makers: The New Industrial Revolution. But I view this as a revolutionary technology that’s finally ready for the masses (“Rapid Prototyping” and 3D printers have been used in industrial settings for decades now but they used to cost 6 figures; now home hackers and high school science clubs are buying them for a few hundred bucks). All the time, I think of something that I’d love to have but isn’t widely demanded enough by the masses for someone else to have put it into mass production. Now, you can copy your kids’ friends toys, create your own tools, design your own jewelry, fix your own stuff rather than buying new again and they’re even making guns which is kind of scary (not just because they’re guns, but they probably don’t function very well for the owner just yet either). The bottom line is that the future is now for 3-D printing and this stock is up 285% in the past year.
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How to Invest in 3D Printing