The Soul of Tech Investing

Those of you who’ve been following me on Tech Investing Daily are probably used to big plays driven by big trends like government contracts, mass consumer habits, and so on.

But in truth, that’s not really my favorite side of tech investing.

Massive companies that make everything you can imagine, in five sizes and 24 snazzy colors, are the suppliers of most of our purchased goods, but to me, they just do not embody the true spirit of innovation and progress.

When I think about breakthroughs and world-changing inventions, I don’t imagine a 50-story skyscraper populated by guys in suits.

I imagine some disheveled researchers, slaving away while the rest of the world sleeps, unaware that they’re just minutes away from hitting upon a revelation that will change the lives of millions.

So when I think tech investing, I don’t think big… I think small.

Stop Looking at the Google of Today

The most exciting moments in the last 50 years of commercial technology development have taken place before their respective companies become billion-dollar success stories.

The creation of the first Apple Computer, hand-built by Steve Wozniak…

Facebook’s first non-founding user…

PayPal’s first-ever transaction….

These moments took place before their inventors were household names or billionaires and marked the inception points of companies that will be remembered for as long as humans connect online.

As an investor, your holy grail is that as-of-yet undiscovered idea, still in its early stages.

It doesn’t matter if you’re the most conservative stock trader ever… The dream is universal.

Of course, it wouldn’t be called the holy grail if it were easy to find.

Predicting which website will be the next Facebook is the same as betting on a horse race with a thousand participants.

But that doesn’t mean you can’t find a smaller, less sensational trend that will all but certainly give its parent company a permanent niche.

Take, for example, this one company I learned about recently.

Turning Your DNA Into Medicine

It’s a biotech firm that’s figured out a way to use a patient’s own blood to synthesize a treatment for bedsores.

Not really a Facebook-caliber hit out of the park, right?

But did you know that bedsores cost between $30,000 and $150,000 per occurrence to treat in a hospital setting?

Formally known as pressure ulcers, they can eat right down to the bone. Left untreated long enough, they can be fatal.

With hundreds of thousands bedridden for weeks on end in the nation’s hospitals and hospices, this adds up to billions in annual costs — and untold pain, suffering, and ongoing complications.

Now, this treatment I mentioned earlier can actually stop and reverse the effects of a pressure ulcer.

The treatment is FDA approved. It’s in use today.

The benefits it can offer to the sick and infirm are immeasurable, not to mention priceless.

And the company that owns the patents and produces and markets this treatment is worth less than $50 million.

Put those variables together, and I get very excited.

A few months back, I persuaded one of my friends, trader and financial writer Alex Koyfman, to nail down the next dozen great opportunities like the one I described up above. And that’s exactly what he’s done.

His recently completed report, “The Secret Of Rich Man’s Row,” details the process by which companies with outstanding prospects can be isolated from the mass of those with less than stellar chances.

If you want to learn how a basic but proven method for weeding out underperforming small- and microcap tech stocks can turn casual trading into early retirement — not to mention the name of the company I talked about earlier — click here for instant access to Alex’s brand new report.

To your wealth,

Brian Hicks

Brian is a founding member and President of Angel Publishing and investment director for the income and dividend newsletter The Wealth Advisory. He writes about general investment strategies for Tech Investing Daily, Wealth Daily and Energy & Capital. Known as the “original bull on America,” Brian is also the author of the 2008 book, Profit from the Peak: The End of Oil and the Greatest Investment Event of the Century. In addition to writing about the economy, investments and politics, Brian is also a frequent guest on CNBC, Bloomberg, Fox and countless radio shows. For more on Brian, take a look at his editor’s page.