4 ms·
Tech has been synonymous with growth. That is why it was trading at a premium and that is why high growth tech companies continue to be priced at a premium whil
by todipa 8y ago
Tech has been synonymous with growth. That is why it was trading at a premium and that is why high growth tech companies continue to be priced at a premium while non-growth tech companies do not.
As a professional investor, I only care about three things:
- Long-term stabilized return on capital
- Pricing (P/E; EB/EBITDA)
- Long-term growth.
The list of companies that check all of those boxes are extremely small
- theosophist 8y agoWould you mind sharing the list of these companies?
- apapli 8y agoI’m not OP, but Microsoft is one of a handful of stand out tech companies for me. They are paying a decent dividend (almost unheard of in tech) and have a very solid enterprise product lineup that has gained traction, with a huge amount of the market left. Furthermore they have a strong consumer and gaming footprint, and generally are positioned well across their entire portfolio.
- icelancer 8y agoHe is basically describing a large percentage of companies in the VYM ETF.