Almost everyone would like to be the individual who discovers the next Microsoft or some other astronomically successful small technology company.

Some will take chances on unknown penny stocks, just for that reason - maybe; just maybe, this one will be the one.

How much does luck play in these types of choices? Who knows? How do you accurately assess the profitability of an incredibly small company, some of which have grown so fast that they are two steps up from when they used to pay employees in cash from the ATM, and kept their business plans on the back of a cigarette folder?

Now that's a bit of an exaggeration, but often when you dig down real deep, you find out that the smallest companies (now big) that did survive may have operated that way initially. So much for details.

However, what happens in order to succeed on a consistent basis in the global marketplace is that the entrepreneurial spirit that drove the company vision from the start now has to be channelled and organised to industry standards.

For without a determined path to follow, one can only put up with unpredictability for just so long. That's true, we brave and living-close-to-the-edge investors (really in our own minds) will back off, unwilling to take the risk that we may lose, permanently.

We revert to being creatures of habit, which is that most of us love to dream, but few can maintain that discipline long-term to see the vision through.

It is one thing to chase a goal that we can control, but another to surrender that control (and money) to someone else and something else - the forces of global capitalisation. In my experience, it has been interesting to see that almost no one is a very aggressive investor in today's world. Many, many investors have discovered that in fact, they are quite conservative in thought and action.

They are not happy still with the low interest rates, but find some comfort in knowing that their principal will be there when they need it.

Most investments can be placed in one of four risk categories:

Safety of principal

Consistent cash flow from dividends or interest

Long-term appreciation (or deprecation) potential

Aggressive appreciation (or depreciation) potential

Whether we agree or not, most investors can be consistently categorised also. Yes, I know you hate being thought of so generically, but hundreds of studies on financial behaviour demonstrate statistically that we are.

Logic is often overweighed by the emotion, or as some may say, the right and left brain dominance dichotomy.

Ages 20-30 very aggressive, will take chances, feel lucky, life is forever

Ages 31-40 moderately aggressive, life lessons may bring in some cautiousness

Ages 41-50 balanced approach, probably to both investments and life, maturity in thought and vision is actually incredibly enervating. The incredibly busy years with almost no time to put plans in action.

Ages 51-60 fairly conservative, the goal here is to accumulate and keep it.

Ages 61-onward, most conservative, maintaining life style, mature thinking, returning goodness to the community and health are the key.

Different kinds of investments will reflect the degree of risk also.

Cash

Statement savings and term deposits

Short term US and other Sovereign nation government bonds

Savings bonds

Some guaranteed annuities (depends upon long-term credit rating of insurer)

Long-term US and other Sovereign nation government bonds

High grade corporate bonds

Utility and preferred stock

Common stock (of mature companies)

Oil and gas income programmes

Unleveraged real estate programmes

Common stock (of very small companies!)

Leveraged real estate property

Oil and gas drilling programmes (do you know what a sinkhole is?)

Commodities, options, futures, derivatives

Hard assets, precious metals, antiques & collectibles

Keep in mind whenever the opportunity arises to capitalise on a new emerging company (stock). It may become the next Microsoft (it could happen) and then again it might not.

Invest small in real small companies. If the capability for growth is there, you will see it compound exponentially over the years.

If you feel uncomfortable or unsure about your choice, look around you at all the other consumer choices you make every single day. Are these companies still in business and how long have they been putting products/services into your life.

Choose one of them (or a mutual fund of them), chances are they will still be around twenty years from now, making a profit and making our lives better.

You can't deny it, to live is to risk. Even cash as tangible as it is can lose purchasing power or be stolen. The challenge is to control risk to suit your choices. And remember, doing nothing is also a choice.