In today’s world, technology moves faster than the speed of light. Everywhere you look, there is a new gadget, app or device. The technology market is seemingly impossible to predict, making smart investments a true shot in the dark. So, how would one go about making an educated guess about the ever-growing industry giant?
If you are confused as to which enterprises are worthwhile, you are not alone. Companies such as Yahoo and Apple are known for their failures as much as their successes. Even the most intelligent people in the industry have appeared clueless at times. To be honest, even technology doesn’t know what’s next for technology.
One large not company not listed above: Google. Google continues to dominate its competitors as a leader in digital advertising space. The organization is well on its way to becoming the world’s most valuable listed company. The honor would likely put Google in very elite company (pun intended).
What trends should be tapped into by investors? There are some tips for the experienced and inexperienced investors that can be found here. People are urged to find trends and ‘buzzwords’ in order to predict future business successes. By identifying emerging enterprises, smart investors will be able to secure their futures.
One such ‘buzzword’ is sharing. When you think of sharing, one company should instantly come to mind – Uber. The private start-up company has seen incredible growth in its first few years of operation. They are now worth an estimated $51 billion. This number makes Uber the most valuable private start-up in the entire world.
The success of Uber is easy to trace. Nobody enjoys trying to chase down a taxi in the middle of the night or in the rain. Taxis are not always around and finding the next most convenient way home was anything but a convenience. While in the taxi, you are essentially at the driver’s mercy as the meter seems to race upward at a frantic rate. How about after the ride is over? Do you enjoy fumbling through your wallet for exact cash and considering a tip? Uber solved each one of these problems for ride-seekers as evidenced here.
Another tip deals with something Uber may be facing in the coming days. Pricing-power is the ability to maintain or push up prices while sustaining business. Companies with the ability of a smart investor are more likely to have pricing power. It’s true, good foresight is the key to pricing power.
One final suggestion flips an old saying on its head. Our ancestors once cried, “go West, young man.” Today’s investor has now completely turned his attention towards the east. While the United States is still a center of creativity and innovation, China continues to grow into a technology goliath.
When looking to invest in technology, remember these three keys: find trends, identify companies with pricing power and look east. The goal is to educate yourself, not to out-smart yourself. And, with so much emergence in the technology industry, it’s very possible to make the same mistakes Yahoo and Apple have. At the very least, these tips should give you a good start as you begin to develop your own investment playbook.