Why I'm Investing in Robotics Today, and How It Could Be a Big Mistake

Google's (NASDAQ: GOOGL  ) acquisitions of several robotics companies have been making a lot of headlines recently, which has led to some incredible investor demand in this space. This is part of what catalyzed stocks such as Adept Technology (NASDAQ: ADEP  ) and iRobot (NASDAQ: IRBT  ) to jump 554% and 254%, respectively, over the past year. Are these the plays to make for investors looking to get in on a piece of this sector?

Chart courtesy of Bloomberg

In this video, Motley Fool industrials analyst Blake Bos tells investors what he's looking for when he considers investing in the robotics sector. While a number of the largest international players in the space are traded on international exchanges, where the fee structure wouldn't make sense for the amount Blake's looking to buy, one alternative that he suggests is the Robo-Stox Global Robotics and Automation Index ETF (NASDAQ: ROBO  ) , giving diversified access to a number of companies in this space.

However, he also sees this move as potentially a big mistake. The investment isn't based on the strength or prospects of a particular company, but rather on the macro belief that advances in cloud computing and machine intelligence could eventually lead to adoption of the technology in new industries. Blake discusses the risk involved with making a macro-only play like this, and tells investors how big of a bite he's taking personally here.

3 stocks poised to be multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2916613, ~/Articles/ArticleHandler.aspx, 8/30/2015 4:26:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Blake Bos

The Motley Fool's industrials analyst, I specialize in 3-D printing and also do my best to stay up-to-date in the fields of robotics and oceanic transportation. Follow me on Twitter, Google+, and/or Facebook below for the most important 3-D printing industry developments and other great stories.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:52 PM
ROBO $23.42 Up +0.19 +0.82%
Robo-Stox Global R… CAPS Rating: *****
ADEP $6.87 Up +0.08 +1.18%
GOOGL $659.69 Down -8.27 -1.24%
Google (A shares) CAPS Rating: ****
IRBT $29.29 Up +0.81 +2.84%
iRobot CAPS Rating: *****