This article was originally posted on April 5 on Advisor.ca.
Media and tech startups are touted as high-growth businesses.
So, evaluating emerging companies and their products could be profitable for your clients and firm, especially since current interest rates and client returns are so low.
But the question remains: how do you properly assess the value of these startups, and how do you discuss the technology sector with investors?
First, it’s crucial to do your research and develop an approach since your customers may be wary of such stocks. Not only did the dot-com market crash sour investors, but these holdings can also be volatile and in the case of Facebook, for example, can fail to live up to market hype.
To help clients add tech stocks to their portfolios, you can help them understand how to read the sector, says Cameron Chell, CEO and co-founder of PODIUM Ventures in Calgary, a firm that invests in high-tech startups.
For more information, check out Chell’s tips and trend analysis below. Part two of this interview—which explores how to specifically analyze a tech company—will be available next Friday.