Beyond Apple: The Many Ways to Invest in the Internet of Things

How might companies like Sierra Wireless, Taiwan Semiconductor, Arm Holdings, and Splunk benefit from Apple driving standards for the Internet of Things?

Jun 10, 2014 at 9:30AM

The Internet has been so revolutionary in part because it was established with such strong central protocols and computing languages. Go to a website and you'll see HTTP at the start of an address bar, and sites will be in markup languages like HTML and CSS. 

One of the areas that's held back the Internet of Things is it lacks many of the same standards. All the "things" we'd like to connect don't have a standard way to self describe themselves. Integration between different devices is painstakingly done through APIs. 

Apple (NASDAQ:AAPL) is unveiling its own solution to this problem through a combination of new frameworks targeted at wearables, mobile products, and smart-home tech. Its recent Worldwide Developers Conference rolled out Home Kit, which is a framework for controlling connected home devices in a single app. 

In the video below, The Motley Fool's Alison Southwick talks to Fool tech analyst Eric Bleeker to break down how Apple is influencing the Internet of Things. While Apple's Home Kit won't solve all the problems that have prevented the smart home from becoming a reality, it helps push the discussion forward on how to make smart homes more simplifed and user-friendly. 

They also discuss some broader ways for investors to play the Internet of Things. Eric suggests looking all the way from devices collecting data to companies building the applications to analyze it. On the device side, Eric notes Sierra Wireless (NASDAQ:SWIR) is an early leader. The company previously was known for mobile hot spots but Sierra is shifting its business to building modules that allow machines to communicate with one another. Eric also looks at chip companies like Taiwan Semiconductor (NYSE:TSM), or even a big-data business like Splunk (NASDAQ:SPLK).

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in Apple? Or to load up on at its IPO, and then just keep holding? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure-play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 TRILLION industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

Alison Southwick has no position in any stocks mentioned. Eric Bleeker, CFA has no position in any stocks mentioned. The Motley Fool recommends Apple, Sierra Wireless, and Splunk. The Motley Fool owns shares of Apple and Sierra Wireless. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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