Wired Investing

Wired just had a story in their magazine called “The Wired.40”, which was about the masters of innovation, technology and strategic vision as they put it. The “40 companies driving the global economy.” What better place to look for the future investment? Actually, it would be better if nobody else knew about this list but that’s not going to happen. These are all highly covered companies, that will not suddenly jumb up in price because some analysts find out about them. Still, if they are really about the future, then this is a good place to look. So here comes my analysis of this list. Read more.

1\. Google

Ok, we’ll have to wait for the IPO and above that it will likely be priced high upon the public offering, which is good for the company, so all fine by me. On top of that, most revenue comes from Adwords and a big part of that from AdSense and a problem I still see with that is that it could be hacked to pieces. I think they have some cool things up their sleves and I still love using their stuff, but I am not sure if it is a good investment.

2\. Amazon

Huge, big, profitable, amazing business model, amazing pull through. But too late for me to invest now, especially as niche players might take some of their market as it becomes easier on the net to switch around and word of mouth grows. But, I do believe their API strategy, to allow anyone to integrate their store system is a very good one. Their P/E is too high in relation to their tiny margin I’d say.

3\. Apple Computer

Very good company, very focussed. I like it. But I just don’t have a good feeling in my stomach. I don’t see the amazing road ahead. A good one, but not amazing.

4\. Genentech

I actually looked at that company when I was still active at Motley Fool, but then I figured that I didn’t understand the drug market good enough to invest there. I opted for investing in Sal. Oppenheim’s Pharma wHealth fund, which investing in the space and is run by Sal. Oppenheim together with several pharma consulting companies. I am starting to get more and more of an idea that Genentech really has found a very good model for research and development. Also, with a of below 100 and margins of almost 20%, they might be interesting. To be looked at.

5\. eBay

Should have invested there ages ago. I still don’t think they can grow tremendously. There is a great article in FastCompany this time about a consultant team working with them currently to find out what they are about. They have to find something new now to focus their employees and continue to grow. Simply being an auction platform isn’t enough. They are opening their API now too though so that others can use their system. Now this excites me! To be looked at.

6\. Samsung Electronics

That’s a giant. They have a great marketing planning system based on a very good article in Harvard Business Review, but other than that they are a giant and I have no clue whatsoever where the profits come from in reality. So this is a nogo.

7\. Yahoo!

Big. Overture is nice but has some problems to get into the contextual advertising market. Not sure here on what their future brings. Sure, the advertising market will rebound, but that’s about it.

8\. Electronic Arts

Very nice. But gaming is too volatile for me, especially as it moves more into the movie direction, making it even more volatile.

9\. Pixar

Great stuff, but with spitting of of Disney, there is too much stuff unsure now for me. I love their movies and I’d love to go to a movie knowing parts of the money I spent come back to me, but this didn’t work well with my McDonalds investment… so. Nope, thanks.

10\. Cisco Systems

A giant, again. And a giant with lots of product lines and so on. They seem to be very good but I’m sticking with F5 Networks for banking on traffic to be needed to be managed more effectively in the future, as more and more people get online. No thanks.

11\. Infosys Technologies

Didn’t know that one yet. They are an outsources of IT, including development, to far away countries with lower salaries. Needs to be investigated.

12\. Dell Computer

Amazing company that one, period. Too big for me to invest in at this time as I don’t really see them going anywhere really soon. Maybe this is just a feeling because they have problems getting into Germany. We have an established system of very cheap PCs that even Dell can’t compete with.

13\. IBM

Already invested there and thinking about some more. I mean this is a powerhouse! XBox has PowerPCs. Cell stuff with Sony for the next Playstation. Apple for their wonderful laptops. Big servers. Small servers. Consulting. Outsourcing. The works. I have no clue how they make money but they just can’t not do it. This is like a safe investment that will still be there in 40 years.

14\. SAP

With the horror stories of SAP integration. No way.

15\. Nokia

Already in there and I would be thinking about more if I wouldn’t already have a lot in there. They have a bit of problems now, but that will change.

16\. Netflix

Too much competition going into the space. Nope.

17\. Monsanto

I remember a friend saying that without gene modified soja, we wouldn’t have the chicken volume we are eating in this world. And he knows, he is responsible for selling this stuff in Europe. So these things are interesting. Probably worth a look.

18\. Toyota Motors

While I do love Toyota from a focus perspective, it’s just nothing I’d invest in. It’s an automative company. That’s dull. ;)

19\. Vodafone Group

Already in there. I truely believe in the wireless future, and while I believe T-Mobile is kicking their butt in Germany, you can neither invest in T-Mobile directly at this time, nor are they as big world wide. Possibly adding a bit

20\. Flextronics

I thought about them time and time again and maybe it’s time to closer look at the numbers. Here it would be important to think about who will build their stuff themselves, and who won’t. Who might be their customer. Will they have more. To be looked at.

21\. Interactivecorp

Ok, they are buying up property left and right. Internet property that is. I have to at least understand that. To be looked at.

22\. NVidia

This is a space I don’t get. Sorry. Enlighten me why they would be someone to invest in. Why this space would be something to invest in.

23\. WPP Group

Too much uncertainty here. Too much that would be needed to be found out.

24\. Intel

Too big already.

25\. EMC

Nope. While I do believe in storage management, this just isn’t something I want to invest in. There are too many different ways to manage storage and if the distributed PCs ala Google will take off in the future, then why do I need a big storage system?

26\. Fedex

Hey, I am in the country of the German Post. I can’t possibly invest in something foreign can I? Ok, joking, but still. I don’t think I want to go there.

27\. Microsoft

Too big. Still a potentially amazing company to work for.

28\. Pfizer

Too big.

29\. Costco Wholesale

Don’t know them over here in Germany. So it’s hard to invest in something you do not know at all.

30\. Comcast

Not sure. I do believe in VoIP but there must be a better investment there than somebody owning the lines.

31\. Taiwan Semiconductor

I don’t want to go in the semiconductur area at this time.

32\. Ameritrade

Nope.

33\. Gen-Probe

Didn’t know that one at all. To be looked at.

34\. Ryanair

Nope. I looked at low cost carriers for the MBA once. Hell of an industry.

35\. L-3

No military stuff.

36\. Citigroup

Too big a bank. It’s more like an institution. :)

37\. Level 3

They might have their network glow if VoIP takes off. Hmmm… Interesting. To be looked at.

38\. Inditex

Oh, that’s Zara. I like their value chain and their amazing speed at getting stuff into the stores but other than that. Nope.

39\. JDS Uniphase

Nope

40\. BP

Nope.

So this gives me some companies to look at. More to follow as soon as I find the time to look at one. :)