What were you doing in 1992?
The Soviet Union had just collapsed. Bill Clinton defeated George Bush in the presidential election. Roseanne, Home Improvement, and Cheers were huge TV shows. The roaring ‘90s were just getting started. And a new technology called the “Internet” was being introduced to America.
Now imagine that around that time, you truly understood how this new technology would change the world.
Imagine you could see the major new industries that would fan off the Internet’s creation in a dozen different directions, like spokes on a wheel.
You could see how people would buy hundreds of millions of computers… and hundreds of millions of software packages to operate those computers. You could see the huge amount of infrastructure that would be needed to carry vast amounts of Internet traffic… how online retail and online media would blossom… and all the other things we take for granted in the 21st century.
If you had that knowledge in 1992, you might have invested in Cisco, the world’s leading maker of networking gear… the “plumbing” the Internet needs to function.
You could have picked up $1,000 worth of Cisco stock after its IPO. Less than ten years later, that $1,000 stake would be worth as much as $1,264,000 (a 1,264-fold return).
You might have also purchased shares in Dell Computer, which became one of the world’s top computer makers. Just $5,000 placed into Dell stock in the early ‘90s would have grown into as much as $4.5 million (a more than 90,000% gain).
You might have also picked up shares of Microsoft, which became the world’s leading computer software maker. The stock gained 9,556% during the 1990s.
An investment of just $5,000… turning into millions of dollars. It’s the kind of monster investment return that can set up you and your family for decades. It can allow you to buy vacations… cars… homes… and just about anything else you want.
Those kinds of investment gains are possible when you invest in businesses and technologies that change the world. The greater the change, the greater the gains.
Knowing all this is hugely important right now. As you read this, we sit on the verge of a transformation very similar to what we saw in the 1990s.
Right now, there are a handful of innovations in their early stages that will change our world the way the Internet did in the 1990s… the way railroads did in the 1800s… and the way the automobile did in the 1900s.
Informed investors stand to make gains similar to – possibly even larger than – those made during the Internet boom. I believe there is a small group of industries that is virtually guaranteed to grow 100-fold… 500-fold… even 1,000-fold – in the coming years… while delivering their early investors life-changing capital gains.
If you know what’s about to happen, you’ll look back at this time with a perspective few people ever attain. Instead of looking back at this time with regret and knowing you “missed out,” you’ll look back with fond memories and satisfaction. This can be the time you lay your first stone in a financial dynasty.
The investments you can make over the next few years can secure your financial freedom for the rest of your life. What’s coming is that big… and that transformational.
Over the next week or so, I’m going to send you a series of essays that form something of an “instruction manual” for taking advantage of it.
My goal in sharing this information with you and members of my Early Stage Investor research service is to provide investors with true insight on what is around the corner… what businesses and technologies will change the world… and most importantly, my job is to get you into the next Cisco… the next Microsoft… the next Amazon… the next Facebook.
Everything Is About to Change… Thanks to the Law of Accelerating Returns
Think of the extraordinary change someone born in 1900 could have seen over a long life. As a child, they would see horses in city streets… and grow up to see those streets full of cars. They would see the invention of the radio… the airplane… the fax machine… air conditioning… and the list of big changes goes on.
I believe those of us who live through the next 30 years will see a similar set of changes.
We’ll see the world change more rapidly than any other group of people in history. The way we work, play, travel, bank, receive healthcare, and entertain ourselves will look completely different than they look now. Large new industries will be created at a pace we’ve never seen before. These new industries will demolish old industries at a pace we’ve never seen before as well.
And it’s all thanks to The Law of Accelerating Returns.
If you’re on the right side of this law, you’re virtually guaranteed to make a fortune. If you’re on the wrong side of this law, you could lose your job and the value of your investment portfolio could crater.
Here’s how it works…
When most of us think of progress, we think of “linear” progress. You can think of linear progress as “step by step” progress. If you make linear progress while going for a walk, each step advances you by one more step.
But what’s coming is NOT linear progress. It is “exponential” progress.
Exponential progress is progress that snowballs… that builds on itself… and ensures that each new step is larger than the one that comes before it.
Here’s an old legend that helps illustrate the power of exponential growth…
Many hundreds of years ago, a king invited a traveler to play a game of chess. The king loved chess, and very much wanted a challenge. The king told the traveler that he could name his reward if he won the game.
In response, the traveler modestly asked for some rice. He asked the king to give him a single grain of rice on the first square of the chessboard and then give him double the amount – two grains – and place it on the next square and give him double that amount – four grains – and keep doubling the amounts for each square on the chessboard.
The king lost the game. Being a man of his word, he called for a bag of rice. The king placed one grain on one square, two grains on the next one, four grains on the next one, eight grains on the next one, and so on. By the 16th square, the king felt the numbers were getting very large. He owed the traveler 32,868 gains of rice on that square.
Soon, the king realized that because of exponential growth, he could not fulfill his promise, for on the 21st square, he would need to put down over 1,000,000 grains of rice.
By the 31st square, he would need to put down over one billion grains of rice. And finally, on the 64th square, the king would need to put down 18,000,000,000,000,000,000 grains of rice, which was more rice than the kingdom could produce in over 100 years.
That is the power of exponential growth.
By the time you get to the second half of the chessboard, each stage of growth produces massive change relative to the early stages.
Knowing the difference between linear growth and exponential growth will instantly set you apart from your fellow investors and give you a huge advantage over them. It can quite literally make you millions of dollars over the coming years.
When a small number grows at an exponential rate, the first stages of growth aren’t incredible. The growth shown on a chart does not soar upward during the early stages.
The extraordinary growth happens at an “inflection point” in time… where the exponential growth begins to snowball and makes things change at stunning rates. This is the “lift off” point you see on the chart below:
Over the last four decades, advancements in computing power, data storage, telecommunications gear, and other technologies have followed a trajectory like you see on the left side of the chart. This is because they started at very low levels. But after many years of advancing at exponential rates, the technologies I just listed are entering the “lift off” phase.
This is why many technologists say that when it comes to computing power, we are crossing over to “the second half of the chessboard.”
Computing power is advancing – and accelerating – at incredible rates. At the same time the cost of computing power is plummeting.
A great example of this is the story of “ASCI Red.”
In 1996, the ASCI Red Supercomputer was the world’s first computer to reach the speed of 1 Teraflop. It cost $55 million to build. It occupied a footprint about the size of a tennis court.
In 2014, Sony released its PlayStation 4 video game console. The PlayStation 4 had almost twice the computational power as ASCI Red. It could fit in a backpack. And its price tag was less than one thousandth of ASCI Red’s.
This simple story shows you how computers are getting much more powerful, much faster, much smaller, and much cheaper.
This has huge implications for our world. Although computers and telecommunications gear have changed our world over the past 30 years, they are set to change it a lot more.
Remember, our “new economy” – our software, our smart phones, our apps, our websites, our email – rests on a foundation of computing power. Computing power makes all these things possible:
- “Face Time” video calls with loved ones
- Managing the hi-tech factories that make our cars
- Smartphones that can take pictures
- Electronic medical implants
- Electric cars
- YouTube videos
- Systems that keep our power grid up and running
- Useful spreadsheets at work
- Advanced record keeping
- Making travel plans with Uber and Airbnb
- And thousands of other things…
After years of relatively modest advancement, computing power is now entering the “lift off” stage. This key ingredient of our modern world is exploding in power and speed. This will change the world at ever increasing rates.
It can be both exciting and scary, I know. But our key takeaway here is this: We can put The Law of Accelerating Returns to work for us… harness its power to change the world… and make huge capital gains over the coming decade.
In tomorrow’s essay, I’ll detail what I believe is the ultimate way to profit from the coming wave of investment opportunities. It’s a unique investment strategy you’ve probably never considered, but a small group of secretive investors are using it right now to make 10,000%+ returns on their investments.