What I See As the Next Dot-Com Boom
Starting to Invest Long Term
I recently started to invest in a long-term retirement account. I’m talking about a Roth IRA. To put it simple, a Roth IRA is a retirement account where you can invest your money after the government takes its taxes out. What this means for you, is that if you decide to invest in a Roth IRA, all the money you take out down the road is TAX FREE!
This is good for you because you’ve already paid taxes on the money, so when you’re ready to take it out, whatever is in there is all yours. You won’t have to pay a dime when you take it out after you hit the retirement age. So, all the gains, dividends, and market upticks are all yours for the taking.
It’s All About Data Storage Companies
Here’s the scoop on how I’m looking at it. From everything I am seeing in the market, I believe that the next wave of long term promise (in terms of growth and security) is going to lay within the data market. Everything we do is data driven.
You are reading this post from some electronic device…boom data.
You might be reading it on your phone…boom data.
You might even share it on Facebook (please and thank you)…boom data.
Everything we do has data tied to it, and thinking about the big wigs out there, data is going to drive growth in our world.
Let’s look at some current things happening that will help showcase my point.
Tesla/Uber/Google: These companies are racing to create the first driver-less vehicle. Yeah that’s a great concept and hopefully it takes on, but people don’t usually think of the bigger picture. Yes, these three companies are great to invest in, however everyone is jumping on that bandwagon. The most important thing to see when examining these driver-less cars, is how they work. They are able to drive themselves through the data they take in. They need to analyze their surroundings, learn from their history, project what’s coming, and a multitude of other things. These are all data based performances.
So where do you think all of this data is getting stored? Hmmm…. That right. Investment opportunities.
I decided to invest in the new dot-com boom. I invested in data storage companies. Those that create data storage and those that handle/secure data for other companies. These are the guys that are the ones to consider. Not many people are thinking about the guy behind the curtains when they decide to invest.
Everyone was looking to invest in Apple when they came out with the iPhone and that was a great investment, however, the smarter investors looked deeper into the opportunity. They might have invested in Apple for the smart phone introduction, but they probably focused more on the components of the phone. Maybe they invested in the company that had a contract with Apple that creates the glass for the touch screens, or maybe they invested in the companies that made the Bluetooth components within them. Maybe they invested in the processors that allow the phone to run so smoothly. The iPhone doesn't just have Apple tied to them. They have multiple other companies that make up such a strong device.
These are the companies to look into, because when the bandwagon has everyone jumping on Apple to invest (which isn’t right or wrong), the well-rounded investors know that the companies that ‘make up’ the iPhone are the ones to get into. Not only will they be making the parts for the iPhone, but when competitor phones come out on the market like they did, these companies may be the same ones contributing to the makeup of those phones. Think about that. Where Apple is one phone product you can invest in, the supplier of the Bluetooth will have hundreds of phones that they'll be a part of.
More Reason’s for Data Companies
There are millions of reasons why I think data companies are the way to go in terms of investing, but the biggest reason why I believe this to be the best bet for investing is because of all the tech companies, food companies, marketing companies, television companies, basically every company, is going to use data as the next big thing to understand all of their consumers. They are going to analyze all the numbers to know exactly what you want and when you want it. It’s already happening and you probably haven’t realized it and that’s exactly what they want.
Have you every searched for something online to buy like a shirt or some electronic? Have you then seen either a Google ad or a Facebook suggested post of that same product or something similar?
The companies are using your search history and habits to target you now. It’s a thing. If you don’t believe me, try it out. Search for something to buy online, then go to a few websites and see if it pops up on the side for you to buy.
If you want a quicker example, go onto Amazon and find something to buy there. Once you are looking at it, scroll down the page and see what is ‘suggested to buy’ with your current product.
How did they know what is suggested to buy? Data. They looked at all the data that everyone else supplied when they bought that product and then bought another product. Amazon knows the likelihood of you ‘needing’ to buy that additional product. Tricky huh?
I’m Up On My Stocks
So, there’s some insight on why I invested in a couple data storage companies. It seems promising in my eyes and so far, I’m up. Only time will tell if this was the right move from me, but from everything I’m seeing, I have little doubt.
** Investor Disclosure: getting2zero can have ownership in some or all of the companies mentioned in the above article. Opinions/bias can present themselves through the articles written. Please conduct research prior to investing in any companies listed on this website as the information provided in the above article can written in a manner of favor from the writer.
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