Please ensure Javascript is enabled for purposes of website accessibility

2 Outside-The-Box Ways to Invest in the Latest Tech Trends

By Matthew Frankel, CFP® – Sep 19, 2021 at 7:12AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

You don't need to buy a high-growth tech start-up to set yourself up for success.

Do you want to invest in the rapid tech innovation taking place, but high-growth (and high-valuation) tech stocks aren't right for you? Tech-focused real estate stocks could be the perfect combination of growth and safety you're looking for. In this Fool Live video clip, recorded on Sept. 3, Millionacres senior real estate analyst Matt Frankel, CFP, discusses two types of REITs (real estate investment trusts) and some specific examples that could be worth a closer look. 

10 stocks we like better than Crown Castle International
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Crown Castle International wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of August 9, 2021

 

Matt Frankel: We have infrastructure REITs next. So this is what I was talking about with the communication REITs. The two biggest real estate companies in the entire stock market are listed right there: American Tower (AMT 0.02%), AMT, and Crown Castle (CCI 0.20%), CCI.

If you're driving down the road and notice those big, ugly cell towers on your route, those are probably owned by one of those two companies. They own and operate these big towers and rent out the space on the top, where companies like AT&T (T -0.47%), Verizon (VZ -1.67%), T-Mobile (TMUS 0.23%) will put their communication equipment to build out their networks. The big difference between the two, everyone asks, what's the difference?

Which is better? The biggest difference between the two, despite its name, American Tower is truly a global company. They have operations all over the world and are not focused on the U.S. Crown Castle is exclusively focused on the United States. So if you want more of a domestic investment, go to Crown Castle. If you want an operator that has a truly global presence and has some emerging market potential, American Tower could be better fit for you. Sorry about that.

Next, we have data center REITs. It's a relatively new area of real estate. But if you think about how many more connected devices you have than you did, say, 10 or 20 years ago and how much more complex data in general has gotten, it's really not hard to understand why we have an exponentially growing need for places to safely and securely house networking equipment like servers. So that has given the need for data center REITs. There are a few big players in the space. Digital Realty Trust (DLR -0.68%) is one that I own in my portfolio. They own data centers located all over the world. They're a very big company and there's a lot of growth potential in this space, too, because I do not see the need for data centers and data storage slowing down anytime soon.

Matthew Frankel, CFP owns shares of AT&T and Digital Realty Trust. The Motley Fool owns shares of and recommends American Tower, Crown Castle International, and Digital Realty Trust. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

Stocks Mentioned

Crown Castle  Stock Quote
Crown Castle
CCI
$141.71 (0.20%) $0.28
Verizon Communications Stock Quote
Verizon Communications
VZ
$38.33 (-1.67%) $0.65
AT&T Stock Quote
AT&T
T
$19.19 (-0.47%) $0.09
T-Mobile Us Stock Quote
T-Mobile Us
TMUS
$151.81 (0.23%) $0.35
American Tower Stock Quote
American Tower
AMT
$221.30 (0.02%) $0.05
Digital Realty Trust Stock Quote
Digital Realty Trust
DLR
$111.70 (-0.68%) $0.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.