Technology — we love it, you love it, the entire world loves it.
Our lives are inundated with all manner of gadgets and gizmos. From ‘smart’ products that make your day-to-day life easy, to dense software that keeps billion-dollar corporations running, tech is everywhere.
The only reason you can read these words right now is because of tech. Whether it’s on your phone, tablet or computer, you’re here because of the power of technology.
Even the staunchest technophobes can’t completely avoid the stuff. Most of them at least have a mobile phone nowadays…
Which begs the question: Who is making all this stuff and more importantly, how can you make money out of it?
How can I get started investing technology stocks?
Just like most major industries, your best bet to make money on tech is through publicly-traded stocks. And these stocks mean you’ve bought a small portion of a company.
When it comes to tech stocks, we’re talking about companies that make and sell tech hardware, software or even services. Corporations that are in the business of technology.
These are companies that are often on the cutting edge. The companies looking for new and exciting products and services that could transform our modern world.
In fact, you’re probably already quite familiar with some of the bigger names out there.
Stocks like Alphabet Inc [NASDAQ:GOOGL] (Google’s parent company), Facebook, Inc. [NASDAQ:FB], Amazon.com, Inc. [NASDAQ:AMZN] and Apple Inc. [NASDAQ:AAPL], are four of the biggest companies on the planet. And all of them are tech companies.
Each one of them has made billions of dollars thanks to revolutionary technology. And their shareholders, the people who own stock in the company, have made a pretty penny themselves.
For example if you’d invested $1000 in each of these companies five years ago, you’d have made $14,510! That would’ve been an average return of 362% across all four stocks, making them some of the best tech stocks in history.
Today, you can still invest in these companies, but don’t expect to see those kind of results.
These stocks have had their heyday. But the broader tech sector hasn’t!
The future of technology is growing more exciting day by day. New ideas, new innovations and new opportunities are around every corner. You just have to know where to look…
The tremendous gains aren’t at the top end of the market. You need to search for companies pushing the envelope, companies that could become the next ‘titan’.
how to find the right tech investments
What you need to understand about tech stocks and technology ETFs, is that they’re a different kind of beast.
‘Tech’ itself is an incredibly broad term. You could be dealing with a chipmaker from China or a social media company in the UK, or even an artificial intelligence (AI) developer in Australia.
There is no definitive limitation on what ‘tech’ can be, or where it can come from. Generally, the mass media will just lump anything remotely digital into the tech category, but there’s so much more to it than that.
You’ve got to follow the trends to see where tech is headed next. Trends that the mainstream doesn’t have time for.
If you want to know tech, then you’ve got to be able to speak tech. And it’s easier to learn than you might think. You’ve just got to have a willingness to learn.
Your best bet is to just start Googling. Give that search button a run for its money and start immersing yourself in everything tech related.
Don’t know where to begin? We’ve got you covered. You can subscribe to Revolutionary Tech Investor— our free e-letter that provides leading tech news.
You’ll find information on stocks, trends and all manner of tech related news. More importantly, we keep it simple. Sifting through the junk and jargon to bring you informative and accessible info.
Where to buy tech stocks
Finally, what you need to understand is that tech is global. Sure, the big names are mainly located in the US. But you can find tech stocks everywhere.
Locally, the Australian Securities Exchange (ASX) is home to hundreds of tech companies. Stocks like Altium Limited [ASX:ALU] and Appen Ltd [ASX:APX], are some of our best and brightest.
Altium has generated a staggering 1,310% return over the past five years. Meanwhile, early investors in Appen have pocketed a mammoth 1,495% in just over three years!
These are the kind of tech stock gains you can find in the market. But while they may be billion dollar companies today, that wasn’t always the case.
Both Altium and Appen started out as small companies with diminutive market caps. And it’s their small beginnings that have made them so profitable.
See, smaller tech stocks generally have the most upside potential for monster gains. Companies that could yield massive returns in very short spaces of time.
You’ve just got to track them down. Which is easier said than done.
Again, this will all come down to what sort of tech you’re looking at.
Is technology a good investment today?
Right now, the tech sector is in overdrive.
Companies all around the world are clamouring to pioneer a handful of major tech innovations. We’re talking breakthroughs like AI, driverless cars, blockchain, biohacking and more.
In fact, the competition is so fierce to be ‘first’ that entire countries are being pitted against each other. It’s a massive race to a technological utopia that will revolutionise the world.
Currently, that race is neck and neck between just two main players: the US and China. Two countries where technology investments are booming.
In the US, everyone knows about Silicon Valley. The place where anyone worth their salt in the tech space is located. A proverbial playground for developing some of the most revolutionary ideas of the past half-century.
But now there is new a challenger from the East. China has fast become a tech powerhouse of its own.
They’re creating their own Silicon Valley. A space that is now a hotbed of tech investments that rivals America.
It’s shaping up as the most explosive tech boom ever.
That’s just the start though.
The next decade is going to be unlike anything we’ve ever seen in human history. The technology on the horizon will change the world like never before.
And if you’re savvy, it could change your fortune in a big way, too.