If you pump unlimited investment dollars into unlimited investments, what tends to happen is that your investees and their employees/suppliers walk off with a lot of money and don't produce any goods or services that result in a sustainable competitive advantage. This is basically the definition of a bubble, and has happened over and over again, from Bitcoin to mobile to subprime mortgages to Web 2.0 to .com to AI to savings & loans. You need some sort of financial constraint - usually the threat of bankruptcy - to create an incentive to invest efficiently, where you make choices about where to allocate resources such that your firm is more competitive than everyone else.
Spreading a small amount of money across a large number of investments within a sector usually works out pretty well, though. This is a diversified portfolio, and basically it means you're betting that someone in the sector will succeed without taking a position on who that will be. If you know that the market exists and the technology is attainable, it makes a lot of sense.
Spreading a small amount of money across a large number of investments within a sector usually works out pretty well, though. This is a diversified portfolio, and basically it means you're betting that someone in the sector will succeed without taking a position on who that will be. If you know that the market exists and the technology is attainable, it makes a lot of sense.