Saturday, 16 March 2013

Technology - Onwards and Upwards!

As I look around I am surrounded by technology, from mobile phones to laptops to a washing machine.  All of which have been developed over a relatively short space of time, and it is now hard imagine a life without it all.

Today the technology industry brings in around $500bn worth of revenue each year and this still expanding!  As we become more dependent on advancements in technology it offers a great investment prospect going forward.

Most investors would remember the Tech boom in the mid to late 90s, this is when everything really started kicking off and a mass investment into advancing tech products was made.  Since then we have seen companies such as Google and Apple rise to become some of the biggest companies in the world.   

Unfortunately technology doesn't stand still, as Apple has seen recently, with a gap until their next product, many investors have become wary of future revenue generation and subsequently the share price has fallen.  The likes of Samsung have taken this challenge in their stride.  With a number of avenues, their new Galaxy S4 phone has been released only 6 months since their last.

Probably the most famous company now is Apple, and it is worth mentioning.  As one of the largest companies in the world, their revenue growth has been second to none.  With as much cash as Poland it is hard to see this company disappearing any time soon.  With many doubting their future product line, it is only a matter of time before they produce another.  With huge resources at their disposal, it is definitely one to hold onto for the long term.

Technology is as we all know very changeable, and when investing in such companies it is important to have a diverse number from this sector.  Encompassing some of the core companies mentioned already I would recommend investing in AXA Framlington Global Tech, which has been an excellent performer over the long term, or alternatively Cavendish Technology. 

For years to come this sector will be hugely profitable and would be a good addition to any portfolio.  

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