SMART INVESTMENT: A Wellspring of Profit

In 1997 I started hearing radio ads for an Internet service provider start-up called MindSpring. I called my full-service broker. He had never heard of it. But after looking at the financials he said that this company was bleeding red ink and recommended that I avoid it. Well, after watching it march up to $16, I called him back and his response was the same. Meanwhile, I was reading many positive things in the local newspaper about the company and its management. A week later, with the stock at $23, I called him and placed an order for 200 shares. It was probably the best $4,600 I’ve ever spent. My investment is now worth six times as much. After that experience, I quickly created an online account and have never looked back.

--Rob, Tampa, Fla.

The Fool Responds: Many people have steered clear of new online ventures that are reporting losses, not profits. It’s true that many of these companies won’t be around long, but if you find the long-term winners, you might reap a hefty reward.