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A 4-Bagger Among the Investing Fear

June 10, 2008

By Georges Yared, Editor, GameChangers

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By nature, GameChanger companies break the mold. That means they can also make you rich when it comes to investing money. But to truly profit from these cutting-edge companies and invest in the best stocks, you have to think a little bit differently than the so-called experts on TV or in the newspapers. They're usually just regurgitating what they're hearing from Wall Street researchers and analysts, and I can tell you from up close and personal that Wall Street research will not make you wealthy.

I have worked directly with over 150 analysts in my time, and yes, a select few were world-class. However, they were the exception rather than the rule. One big problem is that Wall Street is full of FUD: fear, uncertainty and doubt. It's what makes the Street function–the fuel that so-called experts and pundits feed investors on a daily basis.

Hearing all of this FUD plays a mean game on our psyche, especially in tough times like we're in right now. "This economy terrifies me! Growth will never be what it was! These companies cannot possibly meet their revenue and earnings expectations! We are losing our global dominance! Democrats will raise taxes and kill our economic system! People are not spending money! The dollar is dead!"

How many times a week–or even a day–do you hear these kinds of statements? A lot. Face it, bad news sells more newspapers (or clicks in the Internet age) than good news.

Why FUD Doesn't Work

To put it bluntly, FUD is a bad philosophy for investing money. I've been at this a long time, and I can categorically state that the purveyors of FUD I have met and worked with consistently underperformed.They missed the entire decade of magnificent growth from companies you've heard of like Starbucks and Microsoft, as well as companies you haven't heard of like Medtronic (MDT) and Cienna (CIEN) that were also GameChangers.

Why? Because they were afraid that these companies couldn't sustain their success. The FUD prevents them from...