Buy New Technology and Invest in Research & Developmentby John Buckingham
I first got interested in technology stocks after watching things like Micron Technology go from $20 to $40 to $20 to $40 to $20 to $40. The cyclicality in many of these businesses can be more regular than is often believed, so it’s possible to buy on the down leg of a cycle because there will inevitably be an up leg. We’ve also had considerable success in buying technology companies that have great balance sheets. Companies like this have the flexibility to invest in new initiatives, buy new technology and invest in research and development. Even if they aren’t profitable today, you have the potential for a gold mine if the business turns around.