If the trend really is your friend, then gadget junkies should take note. A recent study released by the Center for Media Design at Ball State University confirmed that we spend more time interacting with "media," defined as anything from using a computer to listening to your iPod, than doing anything else, except maybe sleeping. But before you rush to buy more shares of Apple (NASDAQ:AAPL), keep this in mind: TV is still king.
According to the study, which involved 400 average people, Americans -- at least in Muncie and Indianapolis -- spend twice as much time with TV as they do with the runner-up technology, computers. At any given time during the day, 30% of subjects were involved with television in some way, with the figure rising to 70% at some points.
Of course, that doesn't mean investors should necessarily be seeking out all things television, either. TiVo (NASDAQ:TIVO) is a product everyone loves, but the stock has long treated investors the way a baby treats a diaper. Ditto Blockbuster (NYSE:BBI) and Netflix (NASDAQ:NFLX), unless you count those investors who bought at those stocks' recent trough and have seen a quick double.
In other words, it's hard to invest based on "trends," no matter how strong they may be. If you must ride the wave, your best bet is to find the prime business in the category, buy it cheap, and hang on tight. To that end, investors may want to take yet another look at widget providers like Best Buy (NYSE:BBY) or CircuitCity (NYSE:CC), both of which have recently shown strong -- if not Street-pleasing -- results. Or how about an up-and-coming gadget maker called Dell (NASDAQ:DELL)? You may have heard of it. It makes quite a few computers but also offers flat-panel TVs, PDAs, and MP3 players. It might just redefine consumer electronics with its typically scary Dell efficiency.
For related Foolishness:
- Watch out. There's trouble with the next big thing.
- See why one Fool is selling Netflix.
- Is Dell as scary as it sounds?
Netflix, TiVo, Best Buy, and Dell are Motley Fool Stock Advisor picks. To channel more stellar stocks from Tom and David Gardner, plug in to a free 30-day trial subscription.
Seth Jayson spends about 26 hours per day with some kind of media product. At the time of publication, he had positions in no company mentioned here. View his stock holdings and Fool profile here. Fool rules are here.
