Ask a Fool: How Can I Find the Next Facebook or Amazon.com?

No stock that has the potential of producing that type of growth is without a significant amount of risk, so it's important to never buy speculative investments with money that you can't afford to lose.

Having said that, it's fine to chase the "next big thing" with a small portion of your portfolio. When I look for high-potential stocks, I look for innovative companies that solve a problem, and have the capability to scale their business far beyond its current size.

For example, Square (NYSE: SQ) is a company that I believe has the potential to grow to many times its current size. It has been highly successful at solving a problem: Many small businesses don't have a practical way of accepting card payments.

Continue reading


Source: Fool.com