The title of this article is one of my secrets to successful investing. The approach is based on finding brilliant and unique individuals who have a strong track record of creating companies and selling them to larger firms as they become successful -- enriching themselves and shareholders in the process.
Entrepreneur to the bone
Netflix was Reed's next venture. He formed the company in 1997 and launched the now omnipresent subscription movie-rental-by-mail business in 1999. Today, Netflix has more than 3 million subscribers and the company expects to generate more than $600 million in revenues this year. The company's market cap has increased three times -- to $1.2 billion -- in the three years since its May 2002 IPO, and the company has allied itself with Wal-Mart
A biotech leader
Looking for that kind of entrepreneurial spirit can also help you find winners in the always unpredictable biotech sector. Protein Design Labs
Since taking over at Protein Design Labs in 2002, McDade has turned the company from a pure R&D operation into a top-notch marketer. Going forward, this will make the company less reliant on royalties from companies such as Genentech
The market has rewarded this move, driving the stock up nearly 200%. I've recommended the company twice to Motley Fool Rule Breakers subscribers in the last year, and it's up an average of 42% for us so far -- with a lot of room to run.
Foolish final thoughts
The best innovators and entrepreneurs often build the best companies, and strong management is one criterion we look for when picking stocks for Motley Fool Rule Breakers. To date, we've found more than 20 companies that fit the bill, and those picks are beating the market by nine percentage points.
And we expect to find a lot more. We have our eye on hundreds of talented entrepreneurs in our Rule Breaker Universe, more than 500 companies strong. Join the hunt by taking a 30-day free trial. There is no obligation to subscribe. Click here to learn more.