If there is a company that works on a future technology..something of less commercial value as of now but could gain significantly in 7 - 10 years...does it make sense from a long term investment perspective....
2006-06-23 10:05:18 · 10 answers · asked by Anonymous in Business & Finance ➔ Investing
The problem is that the farther out you go, the higher the risk. Well, it isn't actually a problem but you need to understand that risk and return are tied together.
Let me give you an example...
5+ years ago: People looked at storage on the computer and thought that it might be a good idea to create a micro disk drive. Something that would work in the computers that kept getting smaller and smaller.
Sounds look a good idea right? And it was.
Today: Micro drives (1" drives) are available now in 4, 6, 8GB capacities. Cool, right? The problem is that flash memory had been increasing in density and dropping in price faster than most predicted. It's almost to the point where you can buy the same amount of storage in flash...and flash is cheaper! This drove all the profit out of the micro-drive business.
So disruptive technologies can enter a market and interrupt what sounded like a good long-term plan. In this case Flash Memory. And if you think it is merely a matter of switching horses early enough... Flash memory is facing a competitive technology as well a few years from now!
Seeing the future is tough!
2006-06-23 10:15:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I have been told if it is a good investment now. It will still be a good investment in a few years. Let things live or die for min. of three years. Ideas come and go but, future technology especially that will change the world....... What if someone steps over them sooner with something better look at Laser disks how long did they last before DVD. Not long and a lot of people were out money buying the latest toy and turning around a few months later reinvesting in the compacted version we still use.....
Just my Random Thought.
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2006-06-23 17:12:46 · answer #2 · answered by Funding Dreams 1 · 0⤊ 0⤋
Yes but how can you be abslutely sure that it will be good in 10 years time. maybe somebody else will come up with something that serves the purpose better in the next 5 years and renders this "future technology" useless. Imagine 15 years ago people in the IT industry were dreaming of how fast they could make microprocessors. They certainly didn't think of using technologies like dual-core that were developed later and have proved to be more effective than a 10GHz processor which is impractical to build. You get the picture.
2006-06-23 17:12:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The simple answer to your question is alternative fuel sources, but any schmo on The Street would tell you that. Look to the heavens for the answer. The first company to profit from a source beyond our atmosphere will see returns greater than those measured with money.
2006-06-23 17:48:02 · answer #4 · answered by Sublemonic 1 · 0⤊ 0⤋
Nintendo's Wii
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2006-07-02 02:54:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
One click encrypted communications for everything Internet-based. Blogs, etc. IE, not trollable by machine.
2006-07-07 16:58:11 · answer #6 · answered by Sean W 1 · 0⤊ 0⤋
nuclear, portable mini reactor for camping, har har har
i guess there is still plenty open space for human on earth, but the food going to be scarce,,,, so food will going back to trend
2006-07-05 23:34:39 · answer #7 · answered by Henry W 7 · 0⤊ 0⤋
Future technology might create more worlds for us... thus making your question more valid, you idiot...
2006-06-23 17:15:22 · answer #8 · answered by Kiowa1 5 · 0⤊ 0⤋
Yep the future is now.
2006-06-23 17:08:32 · answer #9 · answered by ? 6 · 0⤊ 0⤋
cassette tapes
2006-07-07 03:57:07 · answer #10 · answered by Anonymous · 0⤊ 0⤋