The Golden Rule For Investing in Nanotech – Don’t!

Michael Berger over at Nanowerk speculates that with all the conflicting opinions such as this, “it is difficult for the small investor to find out what’s going on.”

In that respect, nanotech is no different to any other investment, but their are two warning signs that can help you avoid making costly mistakes.

  1. If a company is basing its value on its technology rather than its market (nanotech doesn’t command a premium, and probably never will, take a look at the various nanotech indices)
  2. If a company produces nanomaterials (and has a market cap of less than a billion dollars)

In both cases don’t touch them with a barge pole. You may miss an opportunity, but in 99% of cases you will be better off stuffing your cash in an old sock and hiding it under your bed.

The real opportunities come from companies able to leverage nanotech to open new markets, not from making nanotech.

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