Technology

The technology sector is a huge investment opportunity. It is the largest single segment of the market, larger even than the financial sector and the industrials sector. Technology companies first and foremost are associated with innovation and invention, which contributes to their high expenditures on research and development. Investors expect these costs, but expect growth from pipelines of innovative new products and services. The huge technology sector is typically broken down into “Mega Sectors” for investment purposes: Software, Networking and Internet, Hardware, and Semiconductors. Most companies will fall into one of these sectors, although there are on occasion companies that lie outside these categories. One thing to keep in mind when exploring investment in the tech sector, research and diligence do absolutely pay off. Understanding a company's products, the advantages and disadvantages of those products, and those of its competitors can give an investor an edge. This is a sector where the details matter.