Common wisdom suggests America’s most famous investor has long avoided high-tech companies.
Instead, Warren Buffett has stuck to what he knows – everything from insurance and railroads to soda and razors.
“I know about as much about semiconductors or integrated circuits as I do of the mating habits of the [beetle],” Buffett once wrote. “We will not go into businesses where technology which is way over my head is crucial to the investment decision.”
He felt technology lacked margin of safety, and many “Buffett-heads” followed his lead – and they all missed out on tech stocks’ leaps in value over the last eight years or so.
But that’s not the only reason that common wisdom isn’t looking so wise anymore…
As we’ve been saying here for a while now, every business has become a tech business. It’s all because of the Convergence Economy, where we see multiple technologies merging into new, innovation-unlocking and profit-making creations. That leads to everything from cloud computing and the Internet of Everything to smart homes and connected cars – to technology affecting every part of our daily lives.
But you don’t have to take my word for it…
Fact is, Buffett has been getting to know tech – and he’s been quietly moving into technology stocks over the last six years. He just doubled his holdings in Silicon Valley legend Apple Inc. (Nasdaq: AAPL).
This may sound like merely trivia – after all, we’ve never let Buffett’s aversion to tech stop us.
But I believe the Oracle of Omaha’s move into tech is far more important that it might sound at first.
So today, first, we’ll investigate why Buffett’s newfound interest in smartphones and semiconductors are crucial to our understanding of the tech sector.
Then, we’ll dig up a cost-effective way to play this unstoppable trend that will make you plenty of money in the years to come.
For several years now, I’ve been telling investors – over and over again – that if you want to transform your net worth… if you want to secure a wealthy retirement… you absolutely have to be in high tech and the life sciences.
My father was a defense analyst, and so the conversation could get pretty intense around the dinner table.
Usually, I could follow along, but when he started talking about the “credibility gap,” I got a bit lost.
Having been raised on the folklore surrounding George Washington, I just couldn’t believe that a president would ever lie. And so when my father said Lyndon B. Johnson had a “credibility gap” when it came to what he was saying about the Vietnam War, it just didn’t compute.
(Did I mention I was only 10 or so at this time?)
Presidents, of course, aren’t the only ones who can end up with credibility problems.
We took a look at a tech company with a huge credibility gap back on Jan. 10
We saw how they were always making excuses rather than money. And I told you to avoid any hype you heard regarding a “turnaround” in the making.
Turns out, my prediction was dead on the money. Since then, this company has been hit by wave after wave of bad news.
Investors who ignored my warning paid dearly for doing so. This once-proud company’s stock has fallen by roughly 24% since.
Today, I’ll show you exactly what went wrong – and why avoiding losers is so important.
In fact, if you want to make enough wealth to provide for a secure retirement, it’s absolutely crucial
It pays to be a tech investor with a solid system for crushing the market.
In fact, I just watched such a system pay off 265% for some of my paid-up members in a little less than a year.
Let me show you what I mean…
The system I’m talking about are the five rules for finding the best tech stocks – before they take off. These five filters – which you can find in Your Tech Wealth Blueprint – make it much easier to spot the winners from the losers.
Take the case of the Silicon Valley leader I recommended to readers of my Nova-X Report on Feb. 26, 2016. At the time, this company was largely out of favor on Wall Street.
But just five days after my initial rec, this company broke out on heavy volume. It would go on to become the top-gaining tech stock of 2016.
Today, let’s walk through the process we used to select this chip leader that crushed the market by 24-fold.
And if you’re thinking of checking out now because this is “old news”… don’t.
Wall Street is salivating over the upcoming public debut for Snap Inc.
And who can blame them?
The initial public offering (IPO) for this developer of the popular instant-messaging service Snapchat will likely be huge.
And I’m not exaggerating.
Once shares begin trading as soon as next month, Snap could be valued between $21 billion and $25 billion – making it the largest U.S. tech IPO since that of Facebook Inc. (Nasdaq: FB) back in 2012. That’s a figure that could serve as a big catalyst for the rebounding IPO market.
Also salivating: thousands and thousands of retail investors… and maybe even you.
But hold on…
As a longtime Silicon Valley insider, I love IPOs. If you’re an investment banker, venture capitalist, or company insider, you can make a fortune with them. (Plus, nothing keeps a bull market running like popular new issues that bring fresh cash out of the sidelines.)
However, most investors should avoid buying Snap – or any other company going public – at the open.
At that point, you’re likely to pay top dollar and very well could see the value of your investment drop immediately and steeply.
But we’ve got a way around that.
In fact, we’ve got a way to cash in on the Snap IPO with none of that risk.
It’s an investment that will bring you many years of profits.