How to Find the Next Apple… Ahead of Time

Ten years ago, people would have laughed at you for saying we would soon be walking around with mini-computers tethered to us.

Now millions of people won't step out the door without their beloved BlackBerry or iPhone.

If you had put $10,000 into Research in Motion (Nasdaq: RIMM)
(Blackberry's maker) at its IPO, you would have been sitting on close to
$800,000 in less than eight years. Apple (Nasdaq: AAPL) stock was $7.77
(split-adjusted) the day the iPod was launched. Today, thanks also to
the iPhone, Apple is above $340. That's almost a 50-fold gain. $10,000
turned into more than $440,000.

Think of what Netflix (Nasdaq: NLFX) did to Blockbuster. Just a few
months ago Blockbuster declared bankruptcy; Netflix simply
revolutionized the video-rental business. Blockbuster will be wallowing
in bankruptcy court while Netflix investors are deciding where to moor
their yachts. At press time, Netflix was trading at $189 per share. It
traded at $21 less than two years ago. That's an 800% gain.

I have a pet name for companies like Apple ,Research in Motion , and Netflix. I call them "game-changers."

Game-changers are those companies sitting on a truly revolutionary
product, concept, or business model. They can (and do) come from any
industry, or any sector. They can be enormous companies, but I've found
they're usually smaller businesses that few have heard about… and in
which even fewer invest.

But there's one thing they all share in common — enormous potential that
can translate to profits worth thousands, hundreds of thousands, even
millions of dollars.

There is a problem, though. The ordinary media doesn't cover this beat.
They'll tell you all about a discovery once it comes to light — but they
don't look ahead to see where the next one is coming from.

That's why I wanted to provide you with some of the strategies I use to
invest in game-changers. As the Chief Strategist for StreetAuthority's
Game-Changing Stocks newsletter, it's my job to find those revolutionary
ideas that could be the next big thing… and bring my results to
readers.

Game-changing tip #1 – Be a research fanatic
Whether you have 60 minutes or 60 hours to devote a week, research is
the only way you'll successfully find game-changers. Remember: Most
game-changers are ignored by media outlets until they're bigger trends.
By then the opportunity for the biggest profits has passed.

I do have a confession to make. I have an advantage over most when it
comes to research — it's my full-time job. If you could see into my
office, you'd see clippings, newspapers, SEC reports, and magazines just
about everywhere. (I read just about anything I can get my hands on.)
Those piles don't include the amount of research I do on the computer —
online medical journals, dozens of blogs, and updates on legislation. It
actually comes as second nature; in a previous life, I was a business
editor for some of the nation's biggest papers.

For those with more limited time, I recommend focusing on a market
you're already familiar with and researching as much as you can in that
area. For example, if you were a former sales rep for a pharmaceutical
company, focusing on new game-changing medical breakthroughs is a
natural fit.

Game-changing tip #2 – Consider the potential market
I have a quick reality check I give to any game-changing idea. I call it
my "Segway" test. You might remember the buzz that accompanied the
Segway, the two-wheeled "human transporter" first launched in 2001. The
company boasted that it would revolutionize how we get around. Dean
Kamen, Segway's inventor, even bragged the Segway "will be to the car
what the car was to horse and buggy."

But with a price tag in the thousands and few advantages over walking or
riding a bike, the potential market has been limited to only specialty
uses. The broad appeal the company expected never materialized.

It's an important lesson. A product can be revolutionary. It can present
a bold new way of fixing a problem. But when you get to brass tacks, if
there isn't a potential market, then it's worthless.

Game-changing tip #3 – Make bold predictions and invest accordingly
I mentioned the quote above by the Segway's inventor, but it's hard to
fault him for being bold. To identify a groundbreaking idea, you have to
be forward thinking… and you have to go out on a limb.

If you want to get in on the ground floor of an opportunity — where the
most money is made — you've got to be willing to take a bold stand that
makes other investors look at you funny.

That's why I like to come up with a list of predictions regularly, and
use those to help guide my portfolio. Will all of them come true? I
doubt it, but I do know that the profits from the predictions that do
come to fruition should amply cover the rest.

[If you're interested in reading about my current crop of predictions,
you can visit this link. I've put together an entire videocast -- 6
Financial Surprises That Will Create Huge Opportunities in 2011 -- based
on my latest and boldest predictions.]

Game-changing tip #4 – Profits can come overnight, but hold for the long term
Companies behind game-changing ideas can see their shares "pop"
seemingly overnight. Whether it's regulatory approval, a major contract
with a new customer, or simply the launch of a new product, I've seen
some stocks rise 50% or more in just a day or two on good news.

But that's not the sort of gain I'm looking for (although I wouldn't
turn it down!). Real game-changers see strong returns for months and
years — look at Apple. It's tempting to take a solid gain and book
profits, but the most successful investors will continue to profit as
more people discover and buy the shares of formerly unknown
game-changers.


–Andy Obermueller

P.S. — I mentioned above about my brand-new videocast. From tiny nuclear
power plants that can be buried in your lawn, to revolutionary pain
killers made from cobra venom, I'm convinced these game-changing ideas
could take off in the coming year. To get briefed on these
opportunities, and several others that I think could return many times
your money, please watch this video.

Disclosure: Neither Andy Obermueller nor StreetAuthority, LLC hold positions in any securities mentioned in this article.