- 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.



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

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

Openx pos2

  • ^NDX4061.022-6.252 - -0.15%
  • ^FTSE6780.90-11.34 - -0.17%
  • ^AORD5411.400-34.800 - -0.64%
  • ^AXJO5407.300-38.100 - -0.70%
  • AUDUSD=X0.9028
  • USDJPY=X107.575

Openx pos3

Diggers and Drillers

After three years in the doldrums…

Aussie resource stocks
are now a raging BUY
 
The last time resource stocks traded this low we saw a two and a half year rally that saw them gain 124%...
 
Now they’re getting ready to do it again. Read on to discover why…and three tiny Aussie miners that could explode up many times higher than that in 2014…click here.

Openx pos4

Openx pos5

Openx pos6

Openx pos7

Openx pos8

More Recommended Reading Below...

The Pursuit of Happiness & The Daily Reckoning

  • The Pursuit of Happiness
  • The Daily Reckoning Australia

The NSA has set up a facility in Auckland to use the XKeyscore program to harvest all kinds of mass [Read More...]

The Aussie dollar has refused to bend to the government's will. While this week it fell a few c [Read More...]

The biggest fallout — from the industry’s point of view — is the instant depreciation to your car. A [Read More...]

By demanding bonds of long duration at such low rates, smart investors are signalling that they can [Read More...]

We currently live in a time in which technology creates huge opportunity for smart investors. More s [Read More...]

Last week saw the China Gold Congress take place in Beijing. It was a three day event and China’s la [Read More...]

We came up with our Simplified Trading System a long time ago. We weren't completely serious ab [Read More...]

Mr Market gets up to mischief from time to time. Our guess is that Mr Market aims to make fools of a [Read More...]

If ever there was a Pavlovian response by markets, it came with a 4% surge in the iron ore price ove [Read More...]

Emerging markets are usually most vulnerable to a strengthening US dollar. But that vulnerability on [Read More...]