The highs and lows of tech investing can bring out emotional responses, says Jeff Stacey, founding partner of Stacey Muirhead Capital Management Ltd. in Waterloo, Ont. But there is more reliable money to be made by being dispassionate, strategic and methodical, such as looking at the underlying value of the investment. That, Mr. Stacey says, means asking the following questions:
1. What products or services does the tech investment you’re looking at offer?
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2. What are its prospects of a good return?
3. Does the stock, fund or investment have a long-term game plan?
4. Is it a candidate to be taken over or an investment like Amazon or Google that might do well on its own?
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5. If it’s an app or hardware, do you know what the company actually does and who runs it?