- Money Morning Australia

Entrepreneurs and Entrepreneurialism


Written on 05 November 2011 by Kris Sayce

Entrepreneurs and Entrepreneurialism

Wanted: Obsessed and Passionate Investors

Entrepreneurialism can only thrive in an individualistic society. Successful entrepreneurs create products, services or processes they believe will be beneficial to society. But they don’t do it out of charity.

They do it because of the flipside of helping society… the belief they’ll make a bucket load of cash from their idea.

Fortunately, even though the Australian economy has become more collectivist, it hasn’t gone completely down the Soviet road of 100% central planning. So there is hope.

But because the government is so involved in the economy (remember, total government spending accounts for around 35-40% of the Australian economy) it’s hard for entrepreneurial companies to make it to the big time.

And when they do hit the big time the rewards are huge. It’s like a pressure cooker effect… government rules and regulations keep entrepreneurs pinned down… but eventually, so much pressure builds up, a crack appears and a handful of ideas squeeze out.

Those are the entrepreneurs, ideas, and stocks I look for.

But entrepreneurialism isn’t just about inventing new gadgets. Entrepreneurialism is just as strong in places like the resources sector. It could be a tiny mining company looking for a resource in an unusual place.

Or a seemingly ordinary natural gas company developing a way of liquefying gas at half the cost of other gas companies (such as LNG Ltd [ASX: LNG], the stock I tipped in November 2008 and sold for a 242% profit one year later).

Our July stock tip is a good example of entrepreneurialism in the resources industry. It’s searching for and hoping to produce oil in an unusual location. And our latest stock tip is taking advantage of high prices to exploit a valuable resource.

Entrepreneurs

 


But not every stock I look at is entrepreneurial. Most are. Because that’s where you get the real excitement from investing in the stock market… taking a punt on small companies with a clever idea.

That means finding some of the most creative, destructive and selfish people on the market. Those who aim to improve businesses and the lives of consumers… while at the same time earning a bundle of cash for themselves and their investors.

On this subject I’ll leave the last words to Brad Feld. Mr. Feld is the co-founder of TechStars, an entrepreneur-based reality TV show on Bloomberg TV.

Here’s what he says about the qualities you need to look for in an entrepreneur:

“Really you’re looking for amazing and credible people that are gonna be obsessed and passionate about whatever they’re going after.”

Cheers.
Kris.

P.S. Finding Aussie companies with potentially ground-breaking ideas is what I do on a daily basis. The long days of research go towards producing a monthly investment newsletter called, Australian Small-Cap Investigator. That’s where I introduce subscribers to some of the amazing companies trading on the Australian market. Companies that – if they get things right – could give investors triple-digit percentage gains. It’s a high risk investing approach, but it’s also interesting and a lot of fun! Click the following link if you’d like to find out more about my small-cap newsletter.



Already a subscriber to Money Morning... or simply, just like what you're reading? Then show your support and spread the word...
Share this post on...
Share

Kris Sayce
Kris is never one to pull punches when discussing market developments and economic events that can affect your wealth. He’ll take anyone to task — banks, governments, big business — if he thinks they’re trying to pull a fast one with your money. Kris is also the investment director for Australian Small-Cap Investigator, Diggers and Drillers and Revolutionary Tech Investor. If you’d like to more about Kris’ financial world view and investing philosophy then join him on Google+. It's where he shares investment insight, commentary and ideas that he can't always fit into his regular Money Morning essays. Read more about Publisher and Investment Director Kris Sayce.

Leave a Comment

Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.

If you would prefer to email the editor, you can do so by sending an email to moneymorning@moneymorning.com.au


2 Comments For This Post

  1. Drood Says:

    “Fortunately, even though the Australian economy has become more collectivist, it hasn’t gone completely down the Soviet road of 100% central planning. So there is hope.”

    Another ridiculous fantasy. You know what to do if you don,t like it here. Australia is currently the second best country on earth to live in. I love it here. Stop knocking it or move on

  2. Wiz Says:

    Drood, you are a legend! Love your pithy critiques. Keep them coming! I hope Kris keeps writing this stuff so we can continue to see Drood’s sharp responses.



How Money Morning Can Help You Can Become a Smarter, Better, Investor


Privacy Statement
We value your privacy. We will not sell, rent, or share your email address with any third party. Read our Privacy Policy here.

Diggers and Drillers

A 3-Point Plan to Re-Engage with the Aussie Mining Boom


This new video reveals a way for Aussie share investors like you to RE-ENGAGE with the next phase of the mining boom…while valuations are still dirt-cheap…


The plan centres round three specific stocks.


To find out what they are, click here.

Australian Small-Cap Investigator

The Australian wildcatter
exploring oil's 'final frontier'


The US Geological Survey says this area contains up to 71 billion barrels of oil.

Only a few explorers have secured licences to drill.

One of them is a daring little Aussie firm that begins drilling 'in early 2014'.

According to small-cap analysts Tim Dohrmann it's impossible to speculate just how high this one could go. Find out why here.

World War D

Couldn’t make it to our
‘War Summit’?


Don’t sweat it. Click here for the next best thing…


World War D was the most important meeting of minds of the decade so far. What came out of it will almost certainly force you to reshape your investment plan for the rest of the decade. There's no way to go back in time and get inside the Savoy Ballroom of the Grand Hyatt.

But you can do the next best thing…
to find out what it is, click here.

  • ^NDX3487.853+13.22 - +0.38%
  • ^FTSE6541.61-42.15 - -0.64%
  • ^AORD5396.800+16.500 - +0.31%
  • ^AXJO5404.400+16.200 - +0.30%
  • AUDUSD=X0.9336
  • USDJPY=X102.055

Graphic Ad 1 – Blue Chip Stocks Report


Revolutionary Tech Investor

This report is about TECH MOON-SHOTS


Four of them, to be precise.


It's an early-days project. But one biotech aiming for the cancer moon-shot is already up - get this - 497.14% since tipped.


For four more tech moon-shots, click here.

Gowdie Family Wealth

WARNING:
The worst mistake you can make when handing wealth on to your kids


This brand new investor briefing shows you what your family’s in for if you don’t take care to leave your wealth to them in exactly the right way.


And it shows you precisely how to prevent infighting, recklessness and misunderstanding over money.


Read it here.

The Money For Life Letter

Holden. Toyota. Qantas. BUST


Do you really expect the share market to boom in times like these? That's why Nick Hubble says the best thing you can do right now is invest for safety and income.


This brand new video shows you how you can get predictable, reliable and rock solid cash flow no matter what happens in the wider economy.


You could lock in up to $20,000 a year - and that's just the start. See how here.



Sound Money. Sound Investments. [bullish prediction]

Greg Canavan's first bullish prediction in four years


Greg Canavan
doesn't make forecasts like this often.


When he does, it's because he’s found something that could make you money for years to come.


Read more here.

Is the Australian Housing Boom Really Back?

The Denning Report

2014 Predicted


Dan Denning accurately forecast 2013's flight from
bonds to stocks, the commodities crash and the
Aussie dollar top…to the exact week


In this brand new forecast report, he shares his
three critical predictions for 2014…

More Recommended Reading Below...

The Pursuit of Happiness & The Daily Reckoning

  • The Pursuit of Happiness
  • The Daily Reckoning Australia

Done properly, a retirement business can not only help fill a retiree’s time and replace their work [Read More...]

Free speech is no longer really a right at all. Governments, vested interests, and lobby groups are [Read More...]

Australian house prices are going to remain high. Perhaps finally, when the last baby boomer retires [Read More...]

Make sure that the changes you make to your financial plan are from a credible source. Otherwise the [Read More...]

It was day two of the World War D conference, and the final session was starting. We were closing th [Read More...]

In business, as in other things, we are being roughened up… and toughened up. We promised a grim acc [Read More...]

The worry is that the Russian and Ukrainian economies are suffering badly while politicians enjoy th [Read More...]

During good times, convertible notes behave like debt financing. But if there’s a bank crisis, the b [Read More...]

Pensions are going to balloon sooner or later as the baby boomer bulge retires. Raising the pension [Read More...]

Using the corporate policies of Porsche and the knowhow of the US Federal Reserve, the Australian Go [Read More...]

TESTIMONIALS

"I think you're fantastic! I love to read what you write...you're so interesting and amusing and I've learned so much" -
Money Morning reader, Chris Gadd

"You guys are brilliant. I feel more relaxed about the future than ever simply because I know what is going on rather than floundering around with smoke screens and mirrors from the government and mainstream" -
Money Morning reader, Helen Carter

"Wow what can I say? I was an economically confused moron until I read your newsletter and even though I've been a subscriber for a short period I can now see how easy it is to understand, if you use common sense and can have the spin translated into everyday language. Thanks for an entertaining read." -
Money Morning reader, John

"Keep up the good independent and well thought out articles offering a view that often debunks mainstream myths." -
Money Morning reader, Craig

"I do admire your straight talking and simple analysis of the situation, I think of you as the Jeremy Clarkson of finance." -
Money Morning reader, Jeffery