What are the best technology investments for 2014? It’s a good question. Especially since high beta social media and biotech stocks have really under performed in the last month. So you might be wondering…
And are there any tech stocks that can make for a great investment in 2014?
Luckily, the answer is yes. And even though the Nasdaq is down over 1% this year there are lots of great technology investments you can exploit in 2014 to try and make your portfolio outperform. So do you want to know what the best tech investments are for 2014?
The Best (Old) Technology Investments For 2014:
To be sure, there are a lot of exciting developments in technology going into 2014. For example, graphene companies are starting to gain a lot of traction. And cyber security companies remain in the spotlight following the increase in malicious software and hacking of major companies and governments.
But to be honest…
I think the best technology investments for 2014 are some of the “older” technology companies.
Let me explain what I mean by that:
A lot of the “bluer chip” value technology stocks that have proven track records of revenue generation have been left behind by investors going in to 2014.
While there are lots of new technology companies going public, and biotech stocks are forming a “blow off top,” old school technology stocks like Microsoft, Oracle and Apple seem to have been forgotten about by investors.
Just look at the relative performance of Apple vs. Facebook over the last year to see what I mean:
At some point, it’s hard to believe that investors will continue to ignore older and more established technology companies. So where specifically should you be looking?
Some Technology Stock Picks for 2014:
As we head into the second quarter of 2014, I remain focused on finding high quality technology companies trading below intrinsic value. Rather than obsess over momentum favourites, this approach allows for investing in cash generating businesses at a fair price.
And after all, that’s the Warren Buffett Strategy for investing. So some of the tech companies I’m analyzing in 2014 are…
- Apple Inc (and why AAPL might be under-valued in 2014)
- International Business Machines Inc (can big blue turn big profits in 2014?)
- NetSol Technologies (a small cap enterprise technology stock for 2014)
- Are semi conductor stocks a good investment in 2014?
In addition to the list above, I’m also interested in ORCL and MSFT. But I haven’t gotten around to analyzing them in depth yet. For now, the list above could be a good place to get started looking for long term value in technology stocks.
But it’s not always smooth sailing when you’re investing in technology…
The Best Technology Stocks in 2014 – A Word of Warning:
To be sure, nothing in the stock market is a sure thing. And as these enterprise technology companies adopt to the future of cloud computing there will definitely be some bumps along the road. But…
Rather than give up on proven company’s like IBM when they miss earnings, long term investors might be able to find a nice entry point at a discounted price. If you do your homework there could be some great profits in the right technology investments in 2014.
And by diversifying across some of these “old technology” favourites you can reduce your risk further, by owning a nice basket of cash-flow generating technology stocks at very reasonable valuations. Now given the recent Nasdaq correction I’m not diving in head first. But I’m doing lots of investment research and adding these stocks to my stock market watch list so I can be proactive with investing opportunities when the time is right.
If you’re investing for the long term and looking to find value I think these technology stocks present an interesting opportunity. What do you think make the best tech investments in 2014?
And By The Way: If you want more information on how to analyze technology companies in 2014 you might enjoy my free ebook below. I created the ebook to share what I wish I had known when first refining my approach to the stock market. You’ll also get free tips and tools sent each week with the best resources for improving your stock market investments.