Simple Lessons Learned from the last 5 years in Technology

Series Submitted by: soczie
Stocks - Options - Mutual Funds


Here are some simple lessons that investors in technology stocks have learned over the last 5 years. I believe that these lessons are so obvious and I am surprised that I just don't see them spelled out clearly so I am doing it here. Now, I don't know if the cycle is reaching its end, but I am sticking to these principles.

Chapters:

1 2 3

Submitted: Oct 3, 2007    Views: 347    Comments: 0    Likes: 6   


First, buy the clear winners.

You will always dramatically outperform in technology if you buy the clear winners at any point in the cycle, and don't bet on some second-place company trying to reform itself to be a competitor. 

This is true across the board:

Google over Yahoo!

Rimm over Palm

Nokia over Motorola

EMC over NetApp

Cisco over anyone in telecom equipment

Amazon over anyone selling anything on the internet

Apple over anyone period

Of course, there are examples where this strategy has failed.  For example, Dell looked like a clear winner 3 years ago and became a loser to HP.  The strategy also breaks down when you try to apply it to software.  Microsoft for example has not outperformed its competitors. Nevertheless, you would probably do better in these stocks that to invest in some little tech stock written up somewhere that nobody has ever heard of.




Related Articles:



6

Email this story Email to someone | Print Story Print Content | Add to reading list



Add Your Comments:

Your Name:

Spam protection control:


© Copyright 2008 soczie All rights reserved. soczie has granted BestCashCow.com, LLC non-exclusive rights to display this work on Bestcashcow.com.

Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website’s operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2007 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.