A wise investor once told me that when trying to find a good stock to invest in, you should follow the people – meaning wherever you see the most people (customers) is a good place to start. This is a simple but effective concept. One big problem is the amount of time you as an investor has to sift through the fly by night charlatans to find companies worthy of your money. So, logically, putting all your eggs in one basket might be the best option in this case. What I’m trying to say is that it would be much easier to invest in one company who makes it their mission to perform all the leg work for you. A company like GSV Capital (GSVC), led by Michael Moe, invests in a portfolio of companies that have high growth potential and have strong fundamentals, which is the true driving force behind a company’s growth.
As I mentioned earlier, a business with the most people/customers/users in their store or database would be a good indicator of being a fundamentally strong company with inherent revenue growth, profitability, high demand products and/or services, and adaptability to new trends when they present themselves. Apparently, I’m not the only one who thinks GSV Capital is on the right path either after seeing where they have been labeled a STRONG BUY by StockInvest.us based on strong technical evidence.
A majority (54%) of GSV Capital’s portfolio is comprised of the following ten companies: Palantir, Dropbox, Spotify, Coursera, Solexel, PayNearMe, Lyft, Twitter, Declara, and Curious. As you can see, GSV Capital invests in companies that are fairly new and follow business models that are directly associated with how many users they have in their database, which is not always an easy metric to assign a value too. But, as the world has seen thanks to Facebook ‘if you build it they will come,’ and by ‘build it’ I am referring to each company’s database. Once you have a database of millions of users, you own it and can cultivate revenue streams just like planting rows of corn in a field to keep up the “Field of Dreams” theme.
If the demand for a product, service, or experience is there, the next step is customer service to ensure you maintain your database. All of the companies GSV Capital has in its portfolio can attest to the importance of this observation. Once we have a standing field of corn, we must irrigate it properly to ensure it doesn’t die, or once we have a database of millions of users, we must be steadfast in our communication with customers to ensure they don’t go on to the next store…
The technical indicators outlined in the StockInvest.us report; the core values illustrated from GSV Capital’s selection process for its portfolio; and an experienced management team with Michael Moe at the helm are the attributing factors that led to GSV Capital receiving a STRONG BUY rating. Remember, in certain cases, it is good to put all your eggs in one basket, especially when all your eggs have strong fundamentals…
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