Every Investor's Guide to High-Tech Stocks and Mutual Funds

"The first one or the first few companies to commercialize a new technology successfully reap the rewards of high profit margins and dominant market share."

"Investors must remember that when semiconductor sales are booming and stock prices are high, customers are probably building inventory and setting the scene for a decline."

"For companies to adopt a winning competitive strategy, they must recognize that the only role for large computers is as powerful servers in an open-system, UNIX- and Windows 2000-based, client/server computing world."

"Companies that sell computer systems to end users, whether corporate or home buyers, tend to have low gross profit margins."

"Software companies must advertise directly to consumers, provide dealer-incentive programs and co-op advertising money, and pay for basic technical support to keep their customers happy."

"I think the next big change will be micropayments for information content."

"Investors who can buy into an innovative, R&D-intensive, high-growth-flow company at an attractive price-to-growth-flow ratio will reap substantial profits over the long run."

"Our economy is so competitive that the only way to maintain a 15 percent pretax margin is to have some special edge, either through important patents, a wonderful market position, a loyal customer base, or very productive R&D."

"The M Score will keep you out of the most overhyped development-stage stocks and point you toward those that are overlooked or out of favor with Wall Street."

"Our best advice is to invest 100 percent minus your age in the technology sector and diversify the remainder in nontechnology stocks: international, value, energy, or elsewhere."

"The most important principle in managing a portfolio of technology stocks is to move deliberately."

"Technology convertibles offer worthwhile investment opportunities to investors who need current income, yet want to invest in companies that will benefit from the technology revolution."