"I was asked how you find out which companies GE is investing in for alternative energy. This is an excellent question since GE is the #1 Venture Capital company for alternative energy at this time.
You can go to Press Releases and News on the GE websites, stay tuned to any news related item for GE and simply monitor small alternative energy firms themselves for partnerships. There is no magic bullet to finding this stuff, just some good detective work. There isn’t a list anywhere. This is part of the research a good investor does and enjoys doing.
But I also want to remind you that long term investing is a PROCESS. I am writing a book called:
“If You are a Long Term Investor, Why do You Buy Stocks Like a DayTrader?”
Too often I find that investors rush out to buy stocks without thoroughly understanding what they are buying and why they are buying. Self-made wealthy people do not rush their investment decisions; they take time to evaluate every single decision.
We are entering a stage where many stocks will retrace or correct providing new better risk entries for long term. But just because GE invests in a firm doesn’t mean it is a sure thing. Venture Capital figures that if they get 1 out of 10 start-ups to be a big winner, they are doing well.
Take your time evaluating your long term selections. Realize that you may be watching a stock for several years before you actually buy it. Getting to know the little firm intimately is important because you can learn to recognize the winners from the losers.
Little firms are plagued by many problems:
1. Not enough capital to do R&D
2. Arguments among owners and partners
3. Disagreements with inventors or scientists
4. Road blocks in technological setbacks
The single biggest reason a small company fails to grow falls on management. There may be too many original owners. Often inventors or scientists are buddies and decide to go into business only to find they can’t agree on anything.
Or they just don’t get marketing. You can have the best product or service in the world and not achieve dominance in the market. Marketing, promotions, and merchandising are essential.
Or the small firm under prices itself to compete and ends up not making any money. For those of you who have always been employees and consumers, freebies and discounts and no interest payments etc seem so fantastic but ultimately they can destroy a company.
Companies need to make very high profit margins to succeed because there are so many unseen costs.
Service is huge and can wipe out a company if there is a low margin. Consumers always complain about service from firms but are upset when a company charges sufficiently to pay for good service.
Right now what will be the big difference between those companies that succeed and those who go under next year is profit margins..." Martha Stokes, C.M.T.
Member of Market Technicians Association
Senior Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
Martha Stokes, C.M.T. (c) copyright 2009 all rights reserved.
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