Your Best Business Model For 2014

Imagine you own a business with no physical inventory. You have no supply chain, delivery or warehouse costs.
Your business can fit a nearly infinite amount of product in the palm of your hand — and it can sell this product with almost no diminishing return on each additional unit sold. In fact, with each unit sold your profit margin goes up.
AND imagine further that the richest businesses in the world need your product — AND that you and you alone are the sole provider of this product.
This business exists, and you can invest in it today…
I’m talking about an oil data services business that owns details on 90% of the world’s oil wells. That might sound a little boring leading into the holidays when many are focused on consumer-goods companies. But make no mistake — the immense value of this company’s product means it’s on the “must buy” list for oil companies throughout the world. The company is also one of my top selections for steady growth in 2014.
Part of the reason is the business model. I firmly believe that subscription businesses have one of the most attractive models in the world.  Thousands of regular subscribers mean very reliable cash flows from a wide customer base.
Consider this simple theoretical oil-and-gas-related example to illustrate exactly why.
Exxon Mobil (NYSE:XOM) is considering buying rights to two exploration blocks in Romania in an area where it doesn’t have any prior work experience. Before doing so, it must assess the political risk, government royalty and tax structure, access to labor and shipping rates and routes. It also wants to know prior seismic and well drilling data to make sure it’s getting good property.
Gathering this information piecemeal isn’t efficient; what Exxon needs is an information database through which managers can quickly gather, analyze and share all the relevant information. Then they can reach an investment decision.
Only one company in the world has this data. And right now I’m recommending this very specialized subscription-based consulting company to Top Stock Insights subscribers.
It is a very different kind of business model than that to which most investors are exposed. It owns production information on more than 90% of the world’s oil and gas wells. It maintains datasets – including past, present and future seismic, drilling and development activities — throughout the world.
If you’re a company that wants to drill for oil, like their client Exxon, you’re more than likely relying on at least some information from this company.
Its ability to imbed application software in client workflows means that these clients have access to all of this intertwined data at their fingertips. It’s a very difficult, if not impossible, set of data for any competitor to copy.
In short, this company has a near monopoly, low costs and high margins. That’s exactly the kind of investment I want to own for the long haul.