Dangers of chasing the next Amazon or Tesla

Summary: Every Amazon or Tesla has countless forgotten failures that looked just as promising at the start. We show why survivorship bias can distort investment decisions and why a disciplined, process-driven approach beats chasing the next big winner.

Summary: Every Amazon or Tesla has countless forgotten failures that looked just as promising at the start. We show why survivorship bias can distort investment decisions and why a disciplined, process-driven approach beats chasing the next big winner. We often look at how investors chase IPOs that promise untold wealth, overnight fortunes and easy money. And how most investors lose a lot of their money investing this way. One of our readers asked us, “What about the Amazons and Teslas of the world? The ones that were loss-making for years before becoming giants? What about companies like Zomato? Would Value Research recommend them?” Let’s take a closer look at these questions. To begin with, we agree that companies like Amazon, Tesla and Zomato started with humble origins and went on to become multi-baggers post-listing, delivering massive gains for early investors who held on. As much as we can easily recall these multibaggers, we tend to forget companies that were as promising as the winners but did not meet

This article was originally published on August 01, 2026.