These Tech Stocks Will Make Me Rich

Welcome to week 17 of my stock-picking throwdown with Mr. Market. Let's get right to the numbers:

Company

Starting Price*

Recent Price

Total Return

Akamai (Nasdaq: AKAM  )

$22.23

$11.49

(48.3%)

Harris & Harris

$6.22

$3.99

(35.9%)

IBM

$129.05

$77.44

(39.9%)

Oracle (Nasdaq: ORCL  )

$22.75

$15.44

(32.1%)

Taiwan Semiconductor (NYSE: TSM  )

$10.34

$6.42

(37.9%)

AVERAGE RETURN

--

--

(38.82%)

S&P 500 SPDR (AMEX: SPY  )

$126.28**

$85.30

(32.50%)

DIFFERENCE

--

--

(6.32%)

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

Only 17 basis points down this week. Not bad, considering how profusely my tech portfolio has bled in recent weeks.

The Wall Street Journal tells me that tech shares may fall further. Citing performance data from the dark days of the dot-com bust, Journal writers Ben Charny and Andrew Morse wrote last week: "Shares of technology companies have lost roughly half their value since worries about the economy began wracking the market earlier this year. If past downturns are any indication, they still may have 18 months and another 50% to fall."

Oh, goody.

But Charney and Morse aren't the only writers to question the veracity of some tech stocks. Rick Munarriz wonders whether Apple (Nasdaq: AAPL  ) could be the next Iomega. (I don't see how.) Dave Mock, meanwhile, says that Nokia's (NYSE: NOK  ) graduated rollout plan for its feature-rich N97 handset suggests that the company's out of touch.

I can appreciate their skepticism. We've been here before with tech, and last time, tech let us down. But is now just like then? Certainly not. Tech spending may be down, but this time, the banks and automakers need the bailouts. Apple has enough cash to bail out General Motors on its own.  

So while I'm cautious, I'm also mindful of history. David Gardner produced a decade of 20% returns by buying and holding the likes of Amazon.com and eBay (Nasdaq: 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!
A few quick notes to round out this week's update:

  • Online-video-industry watcher Dan Rayburn writes in this blog post that Akamai is haphazardly cutting prices for its core content-delivery product to fend off competition. I don't mind price cuts, but I'd prefer to see Akamai, named a Black Friday bargain by Foolish colleague Anders Bylund, acting strategically to preserve market share.
  • Earlier this week, Taiwan Semiconductor reduced its fourth-quarter revenue and margin forecast. In response, executives are requiring staff to take unpaid leave, Reuters reports.

There's your check-up. 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. Nokia is an Inside Value pick. Akamai and Harris & Harris are Rule Breakers recommendations. Try any of these Foolish 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. Tim had stock and options positions in Apple and stock positions in Akamai, Harris & Harris, IBM, Nokia, Oracle, and Taiwan Semiconductor at the time of publication. The Motley Fool has a tech-tastic disclosure policy.


Read/Post Comments (2) | Recommend This Article (14)

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.

  • Report this Comment On December 05, 2008, at 4:41 PM, robertf16 wrote:

    I stopped reading the fool after mid December 07 when the website predicted Garmin would be the best stock of 2008. I'll give you 2008 is not over, but for now, this stone is aimed at you and your tech predicting limpness.

  • Report this Comment On December 05, 2008, at 4:56 PM, TMFMileHigh wrote:

    Okay but ... is that really fair? Here's a link to the original: http://www.fool.com/investing/high-growth/2008/08/08/my-tech...

    "I am, therefore, challenging Mr. Market as any other portfolio manager would: My picks against yours, sir. If the blended average return of my five stocks beats the return of the S&P 500 SPDR (AMEX: SPY) over the next three years, I win. If not, well ... it'll be a huge helping of public humiliation for me, I'm sure."

    Don't I get the full three years? Maybe it doesn't matter. I have real money staked on all five stocks and, due to trading restrictions, I'm pretty much locked into the positions as I have them. Your "stone," as it were, is like a pea comparatively.

    FWIW and Foolish best, Tim (TMFMileHigh)

Add your comment.

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: 789091, ~/Articles/ArticleHandler.aspx, 10/24/2014 9:38:45 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