Finding Great Growth Stocks

This article will not recommend specific stocks to you but give you ideas about how to pick stocks with great growth potential.

Years ago I went on a tour of one of the Du Pont family mansions in Delaware. As the tour guide took us into the basement we saw all these huge switches on the wall. They were like the switches you see in the Frankenstein movies. Also in the basement were all kinds of big electrical equipment. When someone asked why that stuff was in the basement the tour guide said because when the mansion was built electricity was not readily available to everybody. Only the rich had it and that's why all that equipment was there. So the mansion could have electricity.

We proceeded from the basement into the separate garage and the tour guide showed us how the garage had been converted from a carriage house. Again the guide told us that in the early days of cars only the rich could afford them.

Seeing the electrical equipment in the basement had gotten my wheels spinning but then hearing about the cars really made me think. When electricity was first available only the rich could afford it. Same with cars. But then in a relatively short time frame both electricity and cars became affordable for most people.

What if you had invested in General Electric or Westinghouse in the time frame it took for electricity to become available to most people? You could have made a lot of money. And what if you had invested in Ford or GM in the time frame it took for cars to become affordable to the masses instead of just for the rich? Or even in a related company like Tyco (wiper blades)? You would have made a lot of money.

Moving this concept forward, how about computers? When PC's first became available you had to have some money to be able to afford one. What if you had invested in Apple or Yahoo or Microsoft at that time? You'd have made money as PC's became more affordable for the masses. Today almost everyone has a PC.

When I was kid my friend's parents had some money and they owned a very early version of a cell phone. It looked more like a walkie talkie back then and must have weighed 5 lbs. What if you had invested in Motorola back then before the cell phones became affordable for everyone? You'd have made some money.

Same with the iPod, Palm Pilot, Blackberry, mp3 player or any new gadget or new technology. In most instances the rich will first be able to afford the new gadget and then the masses. The trick is to find out what the rich are buying and using before the masses can afford it.

If you want to know where to invest today try to find out what new gadgets and technology the rich are buying and using today. As those gadgets become more affordable to the masses money will be made by any company involved in the process. If you buy stock in those companies you will probably make a lot of money.

If you don't know any rich people just read trade magazines and go to technology and people websites. Technology magazines and websites will feature new technologies and the people magazines and websites will feature rich people and talk about what they are doing. People magazine is great for that. When the rich are photographed see what new gadget they are using.

Post any ideas you have about what the rich are buying today in comment section.