Investors need only look at the outstanding long-term performance of Microsoft Corp to immediately understand the importance of the saying – "Let your winners run!"
Microsoft's share price has gained a phenomenal 52,000% in the past 30 years and that's excluding dividends!
While there would have been plenty of occasions over the years to 'take a profit', comprehending the long runway of growth ahead of the firm would have left you well advised to stick with your winner and let the profits run.
Hypothetical questions can be very difficult to answer, but if you were standing in 1986, do you think you would have comprehended the future growth profile of Microsoft?
Like I said it's not an easy question to answer however the business model of Microsoft – which garners massive economies of scale and positive feedback loops – made it the "type" of business with the potential to produce super-profits (in hindsight at least).
The business model of technology companies can certainly be appealing and that's why many investors are drawn to the sector.
It is of course impossible to say whether any of the following three companies could one day rival Microsoft in terms of size or stature but they all have potential and could be at least worthy of a place on your watch list…
Aconex Ltd (ASX: ACX) has a market capitalisation of $1.3 billion and provides cloud collaboration services for the global construction industry.
Technology One Limited (ASX: TNE) has a market capitalisation of $1.5 billion and provides a range of integrated enterprise business software solutions.
WiseTech Global Ltd (ASX: WTC) undertook an initial public offering (IPO) earlier this month and currently commands a market capitalisation of nearly $1.2 billion. The company is focussed on providing software solutions to the logistics industry, which facilitate the movement and storage of goods and information.
