Michael Markowski has been involved in the capital markets for 37 years.  Upon graduating from college he joined Merrill Lynch.  During his brokerage firm career he worked for a number of firms including Oppenheimer and Donaldson Lufkin & Jenrette.  Markowski has held positions of broker, analyst, RIA and as an investment banker he specialized in underwriting the IPOs of early stage companies.  Subsequent to leaving the brokerage industry he founded GFNN, Inc., (Global Financial News Network), CrowdClassifieds.com, Inc., StockDiagnostics.com, Inc., and the OnlineFinancialSector.com web site.  After conducting a post mortem autopsy on Enron he discovered an anomaly in its Financial Statements.  He used his discovery to develop long and short algorithms that he has utilized to make well publicized and successful long and short predictions.  Markowski is a former columnist for Equities Magazine.  Fortune Magazine in its 2004 Investment Guide Fortune named him as one of its 50 Great Investors.


The “Must See” video reveals the biggest ever discovery that I have made since 1977 when I joined Merrill Lynch upon my college graduation.  This is saying a lot especially since I have made several significant discoveries over the years.  Early in my career I recommended the shares of a number of companies which appreciated by more than 10 times including Geico which is now owned by Warren Buffet’s Berkshire Hathaway.  A few years ago I found a $.20 stock that went to $18.00 and was acquired by Ameritrade. My most important prior discovery to this one was to identify OPS as the key Financial Statement metric which caused Enron’s bankruptcy and to then develop a detection system which alerts the shareholders of those companies who have Enron’s same condition.  The detection system enabled me to do the following:

 

1. Predicted the bankruptcy of the Fleming Cos., a 50 year NYSE dividend paying company with 18,000 employees shortly after  Morgan Stanley raised them $300 million.

2. Blew the whistle on Sears credit card receivables problem when all of Wall Street’s analysts had “buy” ratings on it and Sear’s management denied the problem.  

3. Predicted the catastrophe for the US’ largest five brokers including Bear Stearns, Lehman Brothers one year before it occurred.

4. Predicted that the market would crash to much lower lows which occurred in March of 2009 when the market crash began in October of 2008.

 

I also predict that my most recent discovery will not be surpassed by me in my life time.  What I have discovered is going to have a significant positive impact on the world’s economy and capital markets between now and the end of the decade.  Those who follow my lead to make investments over the next few years will have opportunities to generate enormous or dynasty wealth.   To understand why one has to go back to 1995, which is the year that Netscape developed the first commercial web browser and made it available for free.  It resulted in the population of web users exploding from 16 million in 1995 to 360 million by the end of 2000.  The advent of email and browsing online for information drove gains in productivity that resulted in a staggering increase in the global economic growth rate.  Those who were lucky enough to buy and “hold” shares in those companies who participated in the growth potentially had share price multiples ranging from Cisco’s share price increasing by 12 times or $12,000 for each $1,000 invested and AOL’s share price increasing by 3,251 times or $3,251,000 for each $1,000 invested from 1996 to 1999. 

 

Share Price Performance(Multiplier) of select public companies 1996 to 1999.

Company

Multiplier (X)

Yahoo

205X

EBay

36X

Verisign

54X

Cisco

12X

AOL

3,251X

 

The investors who purchased Ebay shares on its September 1998 IPO and held them for one year made 36 times on their investment.  However, there were few if any shareholders of Ebay or of any of the companies in the table above that made such returns. Throughout the web’s early but heady 1996 to 1999 growth phase there were many skeptics and pundits who doubted that the web would ever be ubiquitous.  Obviously, they were wrong.  However, the doubt that was casted by skeptics, pundits and analysts during the period resulted in almost all investors taking quick profits.  Millions made 50% to 100% returns.  They happily paid their taxes but left a massive amount of profits on the table.

 

I believe that Crowdfunding investments that are made over the next three years will provide a once in a life time opportunity for investors to build immediate dynasty wealth.  Its because Social Media and Crowdfunding would not have been possible without the web becoming ubiquitous.  The projections are that there will be 4.5 billion individuals representing 60% of the world population that will have smart phones by 2018.  Since the fast growing smart phone population is already over a billion its going to be very difficult for the analysts, pundits and skeptics to make an argument that there will never be a billion or more individuals in the world who are going to participate in Crowdfunding. 

 

There is an old saying that “history repeats itself”.  That will certainly happen over the next five years.  I predict that the growth for Crowdfunding between 2013 and 2018 will be at least a repeat of the growth that the web experienced between 1995 and 2000.   The good news is that in this instance history does not have to wait a generation or two to repeat itself.  Many of the current generation of investors who invested in web companies during its growth phase will be participants in those public and soon to be public companies who emerge as Crowdfunding leaders.  The other good news from known history is that we also know that there eventually will be a bust.  Those investors and analysts who closely monitor the roll out of Crowdfunding to indentify its leaders and who utilize a buy and hold strategy and manage or adjust their stop losses on the way up will be able to generate dynasty wealth.