|
Hi Taylor:
Is it worth buying expensive tech stocks? I was just looking at
Google and Apple and I feel like I missed the boat. You think the
price of those companies will keep going up? - Rick
Hi Rick: I do indeed! I know a lot of investors get anxious
when it comes to tech stocks, but I feel like these companies have
great growth potential, and the asking price shouldn't scare you away. |
1. Tech
is the future. If we've learned anything over the past two
decades, it's that the latest and greatest technological developments
aren't just passing fads. While some companies roar out of the
gates before stumbling, the sector as a whole has experienced
continued and sustained success. With apps and devices and instant
gratification driving all of our markets, you can't be afraid
of missing the boat.
2. Long-term value. While it's always good to buy a stock
that's underpriced, setting narrow parameters on which companies
you invest in can be detrimental to your portfolio. The goal should
be to find companies that are thriving and will continue to do
so, and many of those businesses currently have pretty expensive
shares. However, those are the companies that are transforming
our economy and will have the greatest influence on the market
in the coming years. There will be peaks and valleys, but you
can expect Google and Apple to continue adding customers and increasing
revenue.
3. Buy what you love. I'm always telling clients to invest
in companies they appreciate. If you let too many advisors and
so-called experts influence your decisions, you might end up with
a confused portfolio that offers subpar returns. Instead, buy
stock in the companies that you like, use, and think will continue
to succeed. Based on your question, I'm guessing you appreciate
what Google and Apple do. If you use their products and services
and like what you get, that's a good sign for the stock. The fact
that the asking price is a bit high just means other people appreciate
those companies as well, which is a good sign for future growth.
|
Constant innovation
makes the tech market feel extra volatile, but the big tech companies
have tons of long-term value. Don't be afraid to pay a little more
for a great stock!
© Taylor Kovar
November 3, 2021
More "Go Far With Kovar" Columns
|
Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
|
|
|