How to invest when you don't know what to invest in PART 2
PART 2 illustrates what I was looking for and how I found it. Have a read of my investment track record and go from there.
How to invest when you don't know how to invest PART 2
OK to recap I'm forgoing traditional advice and diving in head first.
My first pick was Marvel Studios, as a fan of the X-men and comics this was a no brainer. I loved the X movies, I had all of them on DVD and a ton of comics from the 80s and 90s. So why was this a sound pick? At the time it probably didn't seem that way. The stock was stagnant, the last movie didn't do as well as the first two and what they had coming down the pipe were The Incredible Hulk and Ironman, both characters I didn't really like reading about. What did catch my attention was the number of non-comic book people who enjoyed the movies. These were individuals who didn't like comics growing up who were becoming fans. That got my attention.
The second pick was IMAX, a canadian company that builds immersive theatres. Typically these are reserved for educational films and museum experiences. The technology was way ahead of it's time but in 2003 they developed technology to transfer regular 45mm film to the gigantic 70mm IMAX film reel. This was the most breath taking cinematic experience of my life, the first time I saw The Matrix Revolutions in IMAX. I knew right away this was going to be special. But it wasn't until Christopher Nolan's Batman hit the screen that IMAX really took off. When The Dark Knight was released in 2005 it made something like 10% of its revenue from IMAX screens which was only 2% of total screens. People were waiting and willing to pay a premium to see this movie on IMAX. That got my attention.
Lastly, LVS or the Las Vegas Sands Corp. Sheldon Adelson gambled big time on a place called Macau. This is an Special Administration Region set up by China similar to Hong Kong. It's the Las Vegas of Asia and now surpasses Vegas in terms of revenue. LVS leveraged a lot of their holdings in order to secure Macau but in the maelstrom of the economic collapse everything went in the toilet. The stock went from $150 to almost a $1.50 in the span of a year. The company couldn't afford to keep pace with all the buildings in Macau and elected to finish one project in Singapore called the Marina Bay Sands Casino. This was an architectural marvel, it was going to be a tourist mecca and having studied architecture I know when an iconic building is built and I know what that means in the tourism trade. I also knew what Macau meant and how much people in that region like to gamble. Those two things are what got my attention.
PART 3 WHAT DID I LEARN FROM INVESTING FROM THE GUT?