Investors may have noticed that the technology sector has been resilient in the face of extreme economic volatility due to the pandemic.
However, for a non-technical person, understanding jargon like artificial intelligence (AI), big data and cloud computing may seem daunting.
The task gets harder with the rapid pace of change in the technology sector.
It is no wonder that some investors are reluctant to invest in the sector, despite its highly attractive growth prospects and potential to generate outsized returns.
But it doesn’t have to be hard.
Today, we will walk through a simple framework for you to pick the right tech stocks for your portfolio.
Tech titans and “FAANG” stocks
First time tech investors may want to start with larger, mature businesses with proven track records.
These businesses are typically entrenched with deep economic moats that fortify their ability to maintain their competitive advantages, hence making them safer investments in the context of growth.