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What's the benefit of lumping all these companies into a single bucket and calling it "tech?" Looking at it as an investor, it's a distracting term. When the
by vharuck 6y ago
What's the benefit of lumping all these companies into a single bucket and calling it "tech?" Looking at it as an investor, it's a distracting term. When the pandemic hit, did Uber start making more money like Amazon? If more countries pass laws like the GDPR, will that hurt SalesForce as much as Facebook?
The pandemic is a great test for how we look at the market. If two companies fare wildly differently in an extreme event, were they every really in the same category? If you own a department store, don't "diversify" by investing a lot in Amazon. You'll just get a double whammy whenever disposable income is hurting.
- smabie 6y agoOkay of the 11 GICS sectors, give me examples of what you think some of these companies should be classified as.
- vharuck 6y agoIn addition to information technology, because a lot of them also offer cloud computing or other kind of developer-targeted services: Apple: Consumer discretionary (electronics) Alphabet: Communication services (advertising and fiber networks), health care (mostly research), financials (investing), whatever urban planning is classified under, Amazon: Consumer discretionary (retail), consumer staples (food) Microsoft: Industrials (office services), communication services Facebook: Communication services (chat apps and advertising) I could be totally off base, and investors do ignore the "tech" label. But from what I've heard in the news and seen in discussions, it doesn't seem so.