When it comes to technology investment, US companies have been at the fore in attracting interest, with some of the biggest names in the sector – Google, Intel, Microsoft, to name but three – originating in the US. Nonetheless, the spread of technology has been global, and with that spread has come opportunities for investment in international companies across the technology sector.
Fisher Investments have books on Goodreads which include a title on technology sector and maybe of interest to any readers wishing to study the workings of this sector when making investment choices in international technology companies. A key point to remember when considering investments in international technology firms is that each client has a different budget and a different level of risk, so investment strategies will naturally differ depending on client objectives.
Bearing that in mind, technology investments can fluctuate strongly in value, and many investors remember the late 1990s, when technology stocks rose sharply only to experience a subsequent meltdown. However, it is evident that technology has become so integrated into daily life that the technology sector is bound to experience continued growth into the future. Technology funds may not be for the most fainthearted of investors, but they do provide opportunities for long-term growth.
In terms of what technology actually means from an investment perspective, the technology sector incorporates a broad range of industries, from software development and database systems to social media and, most recently, cloud computing. Technology forms the backbone of the cars we drive, the phones we use and the televisions we watch in our homes. So, the opportunities for investment are many.
Many investors will neglect to look outside of the US market for opportunities. This is unfortunate because international markets present many good options. An experienced investment company can navigate you through international markets, helping you identify suitable investment options.
Emerging markets might be of particular interest to clients seeking a long-term investment. For people based in the US, technology dependence feels almost like second nature – look how Internet dependent so many in the US have become. But in many emerging markets, technology is only now beginning to make broader inroads into local economies and, as such, significant opportunities for growth exist.
To take another approach, companies that have already achieved success in international markets and are now looking to tap into the US market represent another potentially worthwhile investment option. The business has already proven that it can be successful in other markets, so there is measurable past performance.
Yet another approach is to focus on those technology companies that have become the giants of their industries – names like IBM and Intel spring to mind. Many of these companies are sitting on large hoards of cash. The strong balance sheets evident at these companies means they are in a strong position to provide good returns to shareholders via share repurchase strategies, increases in dividends, and merger and acquisition activities.
In conclusion, the technology sector is so vast that any investment strategy targeting it will benefit hugely from the advice and experience of an established money manager.