- 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 will collect and handle your personal information in accordance with our Privacy Policy.
You can cancel your subscription at any time

New Frontier Investor

The last investment megatrend birthed stock gains of 11,095%, 20,621% and 50,760% over 20 to 40 years.

If Kris Sayce is right, gains from this next megatrend won’t just reach those heights...

They’ll SURPASS them...

To see why, click here.

Iron ore leadgen

  • ^NDX3961.623+27.487 - +0.70%
  • ^FTSE6795.34+66.90 - +0.99%
  • ^AORD5553.600+19.600 - +0.35%
  • ^AXJO5563.100+19.800 - +0.36%
  • AUDUSD=X0.9387
  • USDJPY=X101.525

The Denning Report

‘The era when the US was a
superpower has ended. We need
to protect ourselves’

Japanese Politician Takaya Muto


A quiet war in the Pacific has begun. The key combatants are the US, China and Japan. And WE are trapped in the crossfire.


In this brand new special report Dan Denning details three reasons why Australia is losing control of its future...and a three-part investment strategy you can use to protect your wealth and PROFIT


LEARN MORE HERE

interest rates leadgen

Australian Small-Cap Investigator

Why Holden’s future lies
beneath the soil in
Tasmania…

 
And not just the future of Holden…but Toyota,
Hyundai and Mazda too


CLICK HERE FOR THE FULL STORY

investing success leadgen

Phil Anderson Cycles, Trends and Forecasts

‘This man can see the future…’

In 2003, when America was at war and CNN was warning of a ‘double-dip recession’, he was buying small cap stocks right at the bottom...

Also in 2003, Australian newspapers were full of headlines warning of a looming property crash, he said nonsense, and that Australian property would boom for years to come...

In 2011, when everyone thought the euro was history, he said ‘the euro is not going to collapse... Greece will NEVER be permitted to default...’

Simply: this man can see things others can’t.

To find out who he is, and what he’s forecasting right now, click here.

Resource Sector leadgen

Gowdie Family Wealth

Which type of family are you?


  1. The kind that ends up in court
    battling over inheritance money…

  2. Or the kind that knows how to
    protect, pass on and grow wealth forever.

Click here if you want the kind of family
that grows its wealth for generations.

Diggers and Drillers [BANNER]

The Money For Life Letter

A giant wrecking ball is about to smash Australia’s retirement system to smithereens...
 
And unless you take the evasive action outlined in this Special Issue, everything you’ve saved and invested over your whole working life could soon be GROUND to DUST.
 
Click here to read.

Gold Stock leadgen

Revolutionary Tech Investor

IMAGINE THIS SCENARIO....


You decide to buy a share on the stock market.

The company, on face value, is run by lunatics.

Their business plan is madness.


It's only 48 cents. What the hell?


You whack ten grand into it.


Ten years later that $10k is worth just shy of
TWELVE MILLION DOLLARS.


Welcome to the Moon-Shot Club!

Graphic Ad 1 – Blue Chip Stocks Report


More Recommended Reading Below...

The Pursuit of Happiness & The Daily Reckoning

  • The Pursuit of Happiness
  • The Daily Reckoning Australia

New Zealand may not be an emerging market, but it’s highly leveraged to growth in emerging markets. [Read More...]

Clearly, illegal immigrants are a headache for the government. But rather than store them on Christm [Read More...]

Don’t fear the swan. But don’t be complacent either. Acknowledge and respect that black swan events [Read More...]

Education was one of the most pressing concerns at the World Future Conference. Our education system [Read More...]

As our personas become ever more digital, our social capital online will be equally important. We ar [Read More...]

Russia and its supporters have nothing to gain from attacking civilians. Russia and Putin were winni [Read More...]

This morning the Australian dollar is trading for 93.9 US cents. It hasn't managed to regain pa [Read More...]

While Australian investors continue to hold most of their share investments in local stocks, they ar [Read More...]

Investors can't consistently choose good investments; because they don't know the future. [Read More...]

Stock markets around the world keep going up. Australia's stock market keeps going sideways. Th [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