Before investing in an emerging technology company, investors will want to first examine its past record of growth and profitability. You will also want to assess the competition. What you are looking for here are companies with a defendable competitive advantage. Highly competitive businesses with low barriers to entry usually have weak profit margins and eventually undergo industry shakeouts. Also, you may want to examine the nature of the competition.
Management has a strong influence on the success of any business.
Nothing about investing is certain, but investment risk can be controlled and somewhat mitigated through proper security analysis. We welcome your feedback. All rights reserved.