Mar
11
The Technocrat Portfolio
March 11, 2008 | 1 Comment
“I am a sucker for technology. I love gadgets. I can’t live without the fastest and meanest computer.” No, that is not me. That is America! I am a Computer Engineer, but I have lightly outdated hardware technology here even when I build state of the art software. But people are so fascinated with technology they have to buy the latest and greatest iPod from Apple (AAPL). That is why I crafted a portfolio of technology: The Technocrat Portfolio. I have had it for a while on my investments, in equal share numbers. I will start tracking it on my blog as a competitor to the Poor’s Man Portfolio I started on March 6th. Just to be fair, I will list starting prices on the same day.
This is my Technocrat Portfolio experiment:
| Company | Symbol | Start Price 3/6 |
Actual Price | Win/Loss |
| Cisco | CSCO | 23.90 | 23.99 | +0.4% |
| Intel | INTC | 19.87 | 20.48 | +3.4% |
| Microsoft | MSFT | 27.58 | 28.05 | +1.7% |
| Apple | AAPL | 120.93 | 119.69 | -1.0% |
Why these companies? Simple, they are the base of all the technology being sold today. Cisco keeps the internet running, and with all the new technologies demanding more bandwidth they should get some piece of the action. Intel creates processors for Mac (Apple), Microsoft, Red Hat Linux (RHAT) and Solaris (JAVA) computers. Intel’s monopoly is stronger than Microsoft’s. Microsoft and Apple just keep finding ways to feed us more stuff. They have learned to sell beyond the Operating System and the office suite and now sell us content, applications and gadgets. I think people will continue to buy these stuff, especially with the $600 tax rebate.
There is a big risk in technology. People may need to cut spending on technology to be able to feed their SUVs. People without a job may decide to cut down their trips to Best Buy (BUY). They may end up buying used stuff on Ebay (EBAY). But I think that people will prefer to spend money on gadgets than on their own education, health, or financial stability.
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