Tech Stars

Invest in the largest technology companies in the U.S. by market capitalisation such as Google, Apple and Facebook.

On average, Google has acquired more than one company every week since 2010.

Microsoft is worth $448 billion.

1 in every 13 people on Earth is on Facebook.

Apple grew from 8 billion U.S. dollars in 2004 to more than 230 billion in 2015.

Technology. The word evokes images of Uber cabs and Airbnb rooms. With proliferation of smartphones, consumer technology now touches almost every aspect of our lives. Want to look up a new brand? Google it. Keeping up with social lives of your friends? Facebook and Instagram to the rescue. But application of technology, in this context Information Technology (IT), goes far beyond consumer products and services. Immense productivity gains have been made in the past few decades in almost every sector through effective use of IT. Applications are wide-ranging – more efficient supply chain and logistics management, to improved automation and control in manufacturing. IT has driven growth and productivity gains across every industry.

It would be no exaggeration to say that IT is one of the major pillars of a developed economy. This fact manifests itself in the equity markets as well. The technology sector in US is arguably the most developed and innovative globally. The top 10 companies in the IT sector (as classified by GICS) had a combined market capitalisation of more than US$2.8 trillion (as of 28 July 2016). That is more than Australia’s GDP.

Buying technology heavyweights gives you a stake in some iconic names that have the firepower to acquire up and coming new entrants and gain market share rapidly. With record high cash balances, they have the ability to invest in innovative R&D projects (think Google’s moon shot projects) to continue the momentum.

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