Great ideas do not often make for great investments

Growth investors like to talk about inventions and new ideas. The pull of growth investing is all you have to do is find a great company with a great product that will soon be big and you can just buy the stock and sit back for incredible gains. There are several problems with this thesis.

American Technology Company [[atco]] was the first stock that ever interested me. I was into high-fidelity music at the time and it was in an industry magazine that I first read about its technology to use multiple point sources of sound waves to project sound to a specific location (rather than all around).

If I had invested in ATCO 11 years ago and held until today, I would have lost over half my money.

ATCO 10Q

Graph.

Disclosure: No position in ATCO.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please complete the formula below to prove that you are human * Time limit is exhausted. Please reload CAPTCHA.

This site uses Akismet to reduce spam. Learn how your comment data is processed.