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Strong Technology Stocks
Diversify: Mutual Funds or Self Selection?
When investing, it is always a good idea to diversify your portfolio by putting funds into different sectors or industries. One option for diversifying is investing in mutual funds. Mutual funds are managed by professionals, investment experts who select different companies the mutual fund will buy into. The mutual fund pools money from a large number of investors. Mutual funds can be an easy way to diversify since someone else if managing the investment. However, there are disadvantages. Perhaps the return you would like to receive is not big enough or you would rather have the freedom to pick your own investments.
If this is the case, it is wise to select strong performing companies in a number of different industries such as petroleum/oil, energy/utilities, manufacturing, financial, or healthcare. Of course, there is the technology industry, which has grown significantly over the past few years. In this hub, you will learn about four technology stocks you may want to consider to be a part of a strong, diversified, investment portfolio.
Remember to Do Your Research
Always remember to do research prior to investing in anything. Tips and recommendations can be helpful, but investing in the stock market always comes with risk. The investor alone is responsible for his/her investment decisions and must always assess risk, making a calculated decision before buying.
Most public companies have sections on the websites for investors where you can find financial statements and information on company culture and values. Information about publicly traded companies can also be found on websites such as Google Finance, Rueters, or Hoovers.
Which of these five stocks is your favorite? Assuming you had the money, which one would you invest in first?
A Good Technology Portfolio
Apple (AAPL) - Apple and Amazon have both been around the block and, if nothing else, they are solid pieces to any portfolio. However, I think we can expect grow from both of these companies. In terms of retail product, few companies currently innovate like Apple. Over and over we see them come out with market leading devices that continue to capture more and more very loyal Apple consumers. I recently walked into an Apple Store (a physical location) and was amazed simply by the innovation they applied just to the shopping process. Despite the loss of Steve Jobs and other setbacks Apple has faced, this is a strong company with lots of cash on hand. Apple stock is currently valued at $519.55.
Amazon (AMZN) - When it comes to the web, no one can beat Amazon in their effectiveness to provide low prices, incredible shipping, and an enormous product depth. Where else can you buy a pair Asics running shoes, a college textbook, and a desk lamp all at one place and pay with one click? Not only does Amazon have an excellent reputation for quality products and distribution, but they are also making a strong move into the tablet market with their new Kindle Fire. This industry diversification makes Amazon a reasonably safe investment and a stock that is likely to continue a steady increase in value. In addition, with a current price of nearly $370, there is always the possibility of a stock split. Amazon's stock value has come close to doubling in the past two years.
Autodesk (ADSK) - This stock is perhaps the most volatile of all the ones I have picked and has the most likely chance of making bigger gains. Autodesk works with Microsoft in the creation of Xbox games and therefore the stock has the best chance of rising when a new game is released and becomes highly popular. Autodesk has been traded publicly since 1985 and has a close connection to Microsoft, increasing investor confidence. Auto desk is currently trading at just over $40.00.
Cisco Systems (CSCO) - Valued at roughly $21.00 per share, this stock gives an investor the ability to buy more shares of this technology design and manufacturing company when compared to Amazon or Apple. Cisco is known for producing high quality communications and IT hardware and has positioned itself very well in the technology market. Of all the four companies listed here, Cisco is probably the most involved with manufacturing "base" computing components and is therefore good for a diverse technology portfolio.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.