Tech-based companies have been ruling the roost across both developed and developing countries from the last decade or so. While these firms have eaten up shares of many other companies on the back of innovative solutions, most of the investors have surprisingly been late on making a decisive move.
Many renowned investors have recently joined the race, after missing out on terrific opportunities early in the piece. Companies like Apple, Google, Facebook, among others have been performing for their investors in the last many years. However, those investors who have not shown any interest of investing in the tech-based companies cannot be blamed simply because they haven’t failed.
Other industries have offered ample opportunities to the investors even as the tech-based companies have taken the lead. What we understand from this phenomenon is that an investor should keep it simple and the investment should be made as per the understanding of the industry, not necessarily as per the trend. It is all about knowing your strengths as an investors and not indulging in things that are beyond your understanding.
In the financial world, we often neglect such things. Instead of banking on useful financial ideas that are simply presented, we go for lucrative offers without having the complete understanding about the same. This is where we end up investing in promising portfolios, instead of result-oriented ones or those customized as per our needs.
The investors are often triggered by the aggressive advertisements and marketing messages. This is where the line needs to be drawn and an investor needs to gain proper understanding to choose an option that serves his purpose, which may be quite different than his peers in the long run.