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Investments and Lifestyles of the Rich - Millionaire Corner

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Sep 05th
Home arrow - Blog arrow Time to turn to tech?
Time to turn to tech? PDF Print E-mail




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Sir Francis Bacon, known as the grandfather of the scientific method, said, “A wise man will make more opportunities than he finds.”  The aftermath of the subprime mortgage downward spiral and the ensuing stock market chaos may be a perfect time to do just that; make an opportunity.

Though less popular in recent years, since many investors were still stinging from the dotcom bubble burst, tech investments may now be the way to go…for the time being. The idea being that some technology investments are far removed from credit focused market securities that are suddenly so volatile. The relative bullishness and stability of some tech investments may entice savvy investors back to Silicon Valley.

An example of the type of company worth looking at is VMware , which makes cutting edge server virtualization software. It recently went public and its shares shot up 76%, and seem to be continuing to inch skyward, despite the rollercoaster stock market that surrounds it.

Companies like VMware, or another recent IPO, Blade Logic, are innovative enterprises offering disruptive technologies. They have allowed easier management of existing technology while moving the industry forward and also offered real cost savings for the way technology in their niche is utilized.  Fortune 500 data center technologists are raving fans of both technologies, and both are primed to move their offerings to a hungry global enterprise and mid-market.

Innovative enterprises are those ideas, businesses, or endeavors that change the landscape of their marketplace; like Netflix changed movie rentals or Apple changed portable music and now cell phones.

Now is the time for the affluent to think like Venture Capitalists and seek out innovative companies who have products or services that will change the future of that industry. Technology companies are only one example. Investments that depart from anxiety-laden, credit-centered equities may be a good move during the subprime fallout.

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