I remember back when they had the dot com bubble and all of that stuff. Back then I would think about going in on some of those tech companies, but in hindsight all of the money seems to have ended up going to people with inside connections and the brokerages that managed the Initial Public offerings. Of course if you are an angel investor you can take huge risks and either you will take a big loss or make an obscene profit. That depends upon just how smart you are and how well you manage the risks involved. For a small time operator like me, the same rules apply even if the playing field is far more limited and the opportunities come at far less grand scales. For me I just want a really good return, without getting myself into a lot more trouble than I need to be in. The trick is to look into the future and try to figure out what the world will be like in five or ten years I suppose.
For example you can look at Moore’s Law and see how the rise of the Personal Computer was completely predictable. Computing power has up to this point in time always become far greater in scope and less expensive for the end user, just as Gordon Moore predicted a very long time ago. I guess that must have been around half a century ago. I do not know that you could have predicted the rise of portable computing devices as easily, but when you think about it they were an outgrowth of the exact same pattern, a branch on the same tree or any other analogy that you choose. Of course seeing what will happen is only useful if you can figure out which company will be the beneficiary of that change.