These Tech Stocks Will Make Me Rich

Welcome to week 14 of my stock-picking throwdown with Mr. Market. Let's get right to the numbers:

Company

Starting Price*

Recent Price

Total Return

Akamai

$22.23

$13.35

(39.9%)

Harris & Harris (Nasdaq: TINY  )

$6.22

$4.72

(24.1%)

IBM (NYSE: IBM  )

$129.05

$84.21

(34.7%)

Oracle

$22.75

$17.72

(22.1%)

Taiwan Semiconductor (NYSE: TSM  )

$10.34

$7.50

(27.5%)

AVERAGE RETURN

--

--

(29.66%)

S&P 500 SPDR (AMEX: SPY  )

$126.28**

$91.17

(27.80%)

DIFFERENCE

--

--

(1.86%)

Source: Yahoo! Finance. *Tracking began on Aug. 7, 2008. **Adjusted for dividends and other returns of capital.

I'll say this for Mr. Market: He's focused. Who cares if we have a new president? He's more concerned with stop-and-start bailouts than with weak earnings from tech stalwarts such as Intel (Nasdaq: INTC  ) . Thus, my digital portfolio continues to blink a bright shade of red.

But is that really fair? One prognosticator says that Apple (Nasdaq: AAPL  ) is headed for the mother of all earnings blowouts in January. Cisco (Nasdaq: CSCO  ) , short-term woes notwithstanding, is outrageously cheap. Nibbling at low-priced tech stocks like these now should lead to a feast of wealth later.

Consider history. David Gardner produced a decade of 20% returns by buying and holding the likes of Amazon and eBay in the real-money Rule Breaker portfolio. Tom Gardner's "simpleton portfolio" was also a market-beater. I believe that, with these five tech stocks, I will achieve similar success.

Checkup time!
Now, let's move on to the rest of today's update:

  • Harris & Harris' third-quarter letter to shareholders is now available. Net asset value declined, as expected, but liquid assets still account for nearly 50% of this tiny tech investor's market cap at current prices. Crazy.
  • IBM may, indeed, be legally in the right with this lawsuit. But it still sounds silly.
  • Taiwan Semiconductor reported a 10.6% decline in October sales due to the slowing global economy. I'm waiting it out because, to me, TSMC's dividend yield of more than 5% appears sustainable.

There's your checkup. See you back here next week for more tech-stock talk.

Get your clicks with more techie Foolishness:

Amazon, Apple, and eBay are Stock Advisor selections. Intel is an Inside Value pick. Akamai, Google, and Harris & Harris are Rule Breakers recommendations. The Motley Fool owns a few shares and covered calls in Intel. Try any of these market-beating services free for 30 days. There's no obligation to subscribe.

Fool contributor Tim Beyers is getting killed in CAPS right now. Thankfully, his real portfolio is doing better. He had stock and options positions in Apple and stock positions in Akamai, Harris & Harris, IBM, Oracle, and Taiwan Semiconductor at the time of publication. The Motley Fool owns shares of S&P 500 depository receipts and has a tech-tastic disclosure policy.

Stock news, financial commentary, and your daily dose of Foolishness: Get plugged in to The Motley Fool on Twitter!


Read/Post Comments (0) | Recommend This Article (5)

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: 776619, ~/Articles/ArticleHandler.aspx, 11/27/2014 5:10:36 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...


Advertisement