9 Opportunities in Electronic Technology, The Future of Everything: Part 7


I feel compelled to reiterate the purpose of this series of articles. Although I am attempting to identify attractively valued stocks in each sector presented by FactSet Research Systems Inc., I am not simultaneously recommending them as attractive or proper investment choices. Therefore, just because I am featuring them in the article, it doesn’t necessarily follow that I think they are good choices. Instead, I leave it up to the reader to evaluate each selection and then decide if these research candidates are worthy of their further scrutiny or not. Moreover, my primary objective is to illustrate how different individual companies are from each other, and even how different companies operating in the same sector can be. It is a market of stocks not a stock market.

Although some may feel that this is a superfluous undertaking, I must respectfully disagree. I am only a couple years short of 5 decades in this industry, and one of my biggest frustrations is constantly seeing how people tend to overgeneralize about the stock market. To put this into context, one of the most common questions I am frequently asked is “what do you think the stock market’s going to do?” This question frustrates me, because it’s not something that matters to me. Instead, what matters to me is what I believe the businesses I am invested in can generate on an operating basis, and whether the market is valuing those fundamentals correctly or not. As I once stated in article, “I believe in minding my own businesses.”

With that said, the Electronic Technology Sector presented by FactSet Research Systems Inc. is comprised of some of the most interesting companies in the US and Canadian stock research universe. Furthermore, as I will be elaborating on later, it is also a sector comprised of very interesting and diverse subsectors. From Broadcom (semiconductors) to Apple Inc. (smart phones) to General Dynamics (aerospace and defense), some of the most interesting and prominent names in technology are found in this sector.

Furthermore, the Electronic Technology Sector also contains constituents that would be considered pure growth as well as many intriguing dividend growth stocks. Additionally, you will find growth stocks that are now morphing into dividend growth stocks. Furthermore, this particular sector and it subsectors offer many important and vivid examples of the importance of valuation, a subject near and dear to my heart.