Technology and Innovation

Some of the most exciting companies you can invest in are technology and innovation stocks. When buying tech stocks there are thousands to choose from all over the world.

Most investors first think of finding these stocks on NASDAQ, London’s AIM, or the Toronto Venture Market. But the truth is that some of the world’s best technology and innovation stocks exist at home on the Australian Stock Exchange (ASX).

For Aussie investors, that means you have the chance to invest in these small stocks before they hit it big and potentially turn into multi-billion-dollar companies.

Investing in technology stocks is smart

Our view is that investing in technology and innovation stocks provides opportunities that no other industry in the market offers. In fact, sometimes technology and innovation stocks provide opportunities that come around only once in a generation.

Of course, there is risk involved in tech stocks. But investors who are comfortable with a higher level of risk and have the experience may be able to ride out the market, particularly if they start investing early.

Think about the incredible run these kinds of stocks had during the 1980s. For example, the NASDAQ more than tripled over that 10-year period. The rise of the ‘once-in-a-lifetime’ tech sector appeared during the 90s, too.

That did culminate in an equally seismic tech bubble collapse. But if you had invested in technology and innovation stocks and sold out after doubling, tripling, or even seeing your investment rise 10-times, you wouldn’t really care about the end of the bubble.

Major players like Apple, Facebook and Google have shown that sky-high booms are possible, but the question for smart investors is how to separate the valuable players from the one-minute wonders.

Once again, we are faced with the idea that tech is too big to fail. Rather than falling prey to the systematic overconfidence people feel for tech stocks, it is wise to remember to look out for those qualities that make for good long-term investments.

While some tech companies appear complicated, others — like Facebook or Afterpay — have fairly simple business models with an obvious target market. If you understand the business behind the share price, it may be worth taking a closer look.

Technology stocks are the future

Right now, with the immense pace of innovation, there has never been a better time to invest in technology and innovation stocks.

If you’re smart enough, you’ll keep an eye on tomorrow and invest for the future. If you do, we don’t think you’ll find anything more exciting and full of potential than technology and innovation stocks.

Read more

Bitcoin

The idea of bitcoin might be completely foreign to you. But if you’re here then you’ve probably at least heard about it. You might have…

Investing in Cryptocurrency

There are thousands of cryptocurrencies in the world, including the likes of Bitcoin [BTC], Ethereum [ETH], and Tether [USDT]. As of June 2021, the market value…

Bitcoin Cash

Bitcoin cash (BCH) is a cryptocurrency that started 1 August 2017. As the name suggests, it’s related to the original cryptocurrency, bitcoin (BTC). In fact…

Ethereum

In just one year, Ethereum (ETH) has risen in price from AU$13.98 to AU$348. With a market cap of $26 billion, it’s second only to…

Litecoin

Bitcoin is one of the hottest investments going around. But there are a whole host of other cryptocurrencies circulating the market nowadays. And they each…

Neo

You’ve heard of bitcoin by now: the world’s most famous cryptocurrency has been making waves for its ridiculous price swings. You’ve probably also heard of bitcoin cash, ethereum and litecoin. The…

Medtech

Medical Technology – often simply referred to as Medtech – is a field specialising in the innovation, design and production of technologies that facilitate healthcare.…

Virtual Reality

Ever played Nintendo Wii tennis with a partner or child at home? What you experienced is a kind of virtual reality. Yes, you were in…

Related articles

You’re Being Lied to about This Industry — Why?

Continuing on from last week’s discussion on energy and why global targets aren’t in line with reality, we’d need a monumental boom in the supply of certain key battery minerals by 2030 if we were to have even a slim chance of reaching global targets.

BlackRock, the World’s Largest Asset Manager, Dives into Bitcoin — Should You?

BlackRock announced a new private Bitcoin [BTC] trust for institutional investors, you know things are getting serious. Because with this new service, some of the firm’s biggest clients will now be able to gain direct exposure to the largest and most well-known cryptocurrency.

The ‘Crypto Amazon’ to Rise from the Ashes of the Crypto Bear Market

Crypto is in a bear market right now, but history suggests this is a great time to accumulate quality crypto projects. One such project — let’s call it Crypto X — can be the ‘saviour of the bear market’, according to veteran crypto expert Ryan Dinse.

The US’s Orwellian Recession Proves the Need for Decentralisation

Overnight the US GDP data was released, and the result was damning. A 0.9% decline for the second quarter in a row has tipped the US economy into a technical recession.

The Fed’s Monetary Madness Continues, but Crypto May Be the Big Winner

Overnight Jerome Powell and his colleagues delivered the expected news: a 75-basis-point rise has been declared for US interest rates.

Examining the Future of Crypto

While many think of bitcoin as nothing but a currency, bitcoin’s protocol and the underlying blockchain technology have much wider implications. Princeton computer science professor Arvind Narayanan wrote that bitcoin’s underlying technology may cause a rethink on centralised institutions