Lux Investing
Is it good to invest money in buying stocks in Hybrid and other alternative technologies?
I want to know if it is at this point "wise" to buy stocks and invest in technologies such as Hybrid manufacturing and other alternative energy technologies since I believe this is the future of automation. With the intrdouction of Hybrids by car manfacturers I believe that eventually it will replace gasoline powered cars.
Public Comments
- i doubt it. hybrids are good now, but they still need gasoline. GM will be introducing a 100% electric car soon, and hydrogen fuel cells are in the near future. hybrids are only a fad.
- It depends upon the price you need to pay to invest in these technologies. To provide an example, had you purchased RCA at its peak in 1929, over its entire lifetime from that point until it was acquired by Bertlesman, it never reached more than 50% of its 1929 price. As the future would work out, television was bigger than anyone believed and RCA made more money than anyone thought possible. However, at its peak, the price was so high that there is no way RCA could ever have made enough money to meet the requirements that price produced. Just as when Yahoo! was at 230 per share. At that price, Yahoo! would have had to have been the sole source of advertising nation wide, forever, and advertising rates would have had to climb at their historical rates and Yahoo!'s margins could not have fell. Price is everything.
- Small, experimental companies might have great technologies, but that doesn't mean that they will be able to turn them into profitable products. Remember: they have to compete with the research department of big places like Toyota. Meanwhile, hybrid products are such a small part of the business of places like Toyota and GM that it doesn't make a significant difference to their earnings.
