Speculative Investing in Technology the Mark Zuckerberg Way

 

‘We’re making the long-term bet that immersive, virtual and augmented reality will become a part of people’s daily lives.‘

For a minute, when we read that sentence we thought we were reading something from our resident technology and innovation expert, Sam Volkering.

Immersive, virtual and augmented reality is exactly the thing Sam has banged on about inRevolutionary Tech Investor since we launched the service last June. We discussed it yesterday in our regular monthly video update for Revolutionary Tech Investor subscribers.

But for a long time Sam was the only guy talking about this stuff anywhere. Most other folks were too busy worrying about whether the US Federal Reserve would stop money printing.

So, who is it that’s now making a ‘long-term bet’ on the kind of things Sam was talking about a year ago? Mark Zuckerberg, the CEO of Facebook [NASDAQ:FB] following the company’s US$2 billion takeover of technology firm Occulus VR Inc…

Remember that this comes hot on the heels of Facebook’s takeover of messaging app WhatsApp for US$19 billion.

Zuckerberg certainly isn’t shy about splashing around the company’s cash on highly speculative business deals.

But will any of these billion dollar deals pay off?

That’s impossible to say right now. But it’s inarguable that Facebook had to do something to plan for future growth. There are surely limits to how much Facebook can make from allowing people to stalk and spy on each other.

But this deal is important. It confirms everything we’ve tried to explain for the past year or more.

Life goes on

One reason we decided to launch a premium technology investment advisory last year was that we knew that whatever happens from a macro-economic perspective, life still goes on.

People still buy things.

Investors still invest in things.

Companies still sell things.

And importantly, entrepreneurs and capitalists still innovate and create new opportunities.

The fact is, if you decide that you’ll only invest once all risk subsides and you think it’s safe to venture back into the market, the odds are you will have missed the best investment opportunities.

As far as we can tell, our reasoning has been spot on. We’ve come across one trumped up crisis after another, and yet, what has happened?

That’s right, stocks have gone up. In fact, from the date of Sam’s first Revolutionary Tech Investor stock pick on 10th June last year the S&P/ASX 200 has gained 13.5%.

The NASDAQ Composite index has gained 22.1%.

It’s a shame to think so many investors missed out on these gains because they were scared rigid of taking risks.

But taking risks is what investing is all about.

Zuckerberg’s big investment punt

That’s exactly what Facebook CEO Mark Zuckerberg has done on a grand scale. Facebook has made two takeovers totalling US$21 billion.

Zuckerberg has done this at a time when the world, investors and markets have been on edge about Russia and Ukraine.

And yet, did that stop him splashing out US$21 billion?

No, it didn’t.

Read the rest of this article at Money Morning