The Best Ideas Paired with the Best Leaders Create the Biggest Profits
A great idea alone won’t make money. It takes execution from brilliant leaders to turn a concept into a moneymaking machine.
In 1999, Yahoo acquired GeoCities, a search engine that was the third-most visited website in the world during that time.
However, Yahoo was forced to shut it down by 2010.
But while GeoCities sits in the graveyard, another search engine is now worth $702 billion. Google, now Alphabet Inc. (Nasdaq: GOOGL), was launched in 1998 by Larry Page and Sergey Brin.
Page and Brin succeeded where GeoCities failed, because they realized content should rank according to its popularity. Instead of searching through a jungle of information, Google’s advanced algorithms allowed searchers to find answers to their question fast and easily.
And just like Page and Brin, Bezos is a juggernaut at improving and executing on ideas…
Back in 1999, Louis Borders – founder of Borders bookstores – launched an IPO for Webvan. Through Webvan, customers could order groceries online and have them delivered to their home.
Bezos and Borders were booksellers trying to figure out how to capitalize on the revolutionary potential of e-commerce.
One company went bankrupt in 2001, and the other is now one of the biggest companies on the planet.
To add insult to injury, Bezos has now shown that, under the right leadership, the online grocery model works.
Bezos launched AmazonFresh in 2007 and just acquired Whole Foods in 2017 to help fuel Amazon’s grocery delivery business.
The difference between Webvan and Amazon is Bezos put solving consumers’ problems ahead of rapid expansion.
According to a 2013 Forbes report, former Webvan board member Mike Mortiz said the company tried to expand into too many new territories before proving it was successful in its first market.
And there’s an important lesson here for cryptocurrency investors.
The tech bubble popped in 2000 because people poured money into companies like GeoCities and Webvan, thinking that because they were Internet companies, they would soar thanks to the revolutionary new technology.
But investors who knew which companies had real potential and could actually use this technology to win customers ended up insanely rich.
There will be cryptocurrencies out there that may sound good, but they aren’t backed by the forward-thinking leadership needed for the project to work.
There will also be teams behind cryptocurrencies that will spend more time on hyping up the coin than working on technology to make it succeed.
The Webvans of the crypto world won’t last, but investors who back the Amazons of the crypto world could unlock once-in-a-lifetime profit potential.
*This has been a guest post by Money Morning*