More risk doesn’t always mean greater reward. Just look at these imploded tech stocks.

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OPINION: Investors have finally done what critics have argued for decades needed to be done — invest in risky science-based technologies.

Academic critics have long argued that U.S. companies need to make more “creative-destruction” investments that boost productivity by replacing existing processes with very different and more efficient ones. Instead, U.S. companies too often think small, looking for ways to cut costs and settling for safe investments that increase productivity modestly.

A more fundamental problem may simply be that managers cannot confidently specify anything resembling the black-and-white choices posed in these surveys. The reluctance to commit substantial resources to risky ventures may be due to the reality that the risks may not lie simply in the probability of failure but in an overwhelming uncertainty about the potential payoff.

Quantum computing is also in the midst of a venture-capital funding boom, receiving a record $823 million in 2021, up more than 70% from 2020. Palo Alto-based PsiQuantum received $450 million, which gave the company a $3.1 billion valuation. Toronto-based Xanadu, a designer of quantum silicon photonic chips received $100 million.

Long on promise; short on time Will these and other risky investments prove fruitful? Hard to say. These types of technologies often take decades to succeed, which is a long time for venture capitalists known for their myopia and impatience. IonQ IONQ, -2.23%, Rigetti Computing RGTI, +2.34% and other quantum computing stocks have also tumbled more than 80% from their peak as experts have grown more skeptical about quantum computing.

 

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Opinion:investing (not trading) is not based from ATH to now. BTC is more then that & returns on investment depends on entry. Covering worst case scenarios is boring. Many new investors shouldnt be scared of the industry. Don't FOMO either 😂 & listen to grifters. Boring article

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