Five questions to ask when investing in tech
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?Godfried Edelman/Getty Images/iStockphoto
2. What are its prospects of a good return?Stuart Jenner
3. Does the stock, fund or investment have a long-term game plan?Fanatic Studio
4. Is it a candidate to be taken over or an investment like Amazon or Google that might do well on its own?Jakub Jirsak/Getty Images/iStockphoto
5. If it’s an app or hardware, do you know what the company actually does and who runs it?