If you park your money in the same place for 20 years, you can do well. But a lot of times you’ll just keep up with inflation. And sometimes, the only gains you make come from steadily pouring money into your parking spot over many years; it’s just a savings plan. Not an investment plan.
Great returns come from catching the waves. Good waves can last anywhere from 2 to 5 years. You hop on, ride high, and then hop off and look for the next one.
The dot com bubble was a nice wave. And over the last few years property has been a good wave. The real question though, is … where’s the next big wave?
The answer has 2 parts. First, the sectors or industries should be experiencing strong growth. And second, where individual companies are concerned, they should have strong growth potential.
And by strong growth potential I’m not asking myself “are they cool” or “are they in the hot industry of the moment”. The question I’m asking is “can they sell it”?
Big Wave Candidates
Here’s a list of strong sectors to keep your eye on and maybe get involved with. In each of them there are a whole host of companies.
I won’t list specific companies because you should do your own research. And no matter how hot an industry is, some companies will bring stellar performance and others will completely bomb.