In just a decade, your world can change.
I grew up in the ‘80s. In our small Taranaki town, I was among the first kids to get hold of a personal computer. My parents believed it would be the future. And stretched themselves to buy a new System 80 computer for the household. Complete with inbuilt tape deck to load software.
A family friend also ran the computer lab at the local high school. And at this home, I had the opportunity to get on the latest Apple II computers.
By the mid-‘80s, I was coding in BASIC. Then, in the ‘90s, the internet became widespread, initially through dial-up modems. And toward the end of high school, I had a thriving small business selling computers and consumables.
As luck would have it, I sold this business to fund my first year at Auckland Uni, studying finance. Technology gave me a start. And the rest, as they say, is history.
Unfortunately, up until now, we’ve struggled to find good tech opportunities for our investment portfolio. Due to cost. When you’re having to pay P/E multiples of 100 or more to enter apparently high-growth businesses, you do so at considerable risk.
Any change to the growth story could wipe out your investment. Not by 20% or 30%, but by 50% or more. Since there usually aren’t many tangible, property-based assets supporting these businesses.
Yet some value is starting to emerge.
We’re starting monitoring on a new company today. I started looking at this business some years back in Europe. But the idea today comes from my colleague John Ling, who has been quietly investing in the business.
It was this business that drove the revolution in personal computing. And started my journey with them in the 1980s.
Most tech stocks are still, in my view, very expensive.
But there is one tech stock in which I see both value and upside. And with today’s pick, it could in time give our portfolio another boost….
Already a Member? Sign In Here
Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.