Customer Reviews

How to Buy Technology Stocks

5 star:		(3)
4 star:		(3)
3 star:		(1)
2 star:		(2)
1 star:		(0)

 

 

The book doesn't give too much in the way of simple formulae, but does give a lot of insight that the reader can use to help develop an investment strategy re technology. Some of it is a little dated, but I would recommend reading the whole book, not just a couple of chapters.

The following (long-ish) quote from chapter 8 I regard as very profound and chapters 8 & 9 worth re-reading and ponderingh awhile: "I would avoid placing bets on any side in the compatibility wars. We have entered a period in computer technology ....... when monopolies and even profitable pricing are becoming more and more difficult to sustain....... The outcome, which is compatibility, is a foregone conclusion. favor the stocks of those companies - and they are not necessarily computer or networking companies - who recognise at the strategic level that the intersection of data and communictaions networks simultaneously creates a broad new market and a wholly new product. And that this product, which is a supernet, is coming into the world like an avalanche".

I regard this as a profound insight, and is precisely what is happening on the internet at this moment. Understanding chapters 8 & 9, and reviewing the markets in its light should help considerably in understanding the current craziness of the 'net and possibly in identifying the next winners.

The book isn't full of correct predictions and winners, but the basic insghts are still valid.

In the handful of new books on the subject of tech stocks, this one came out first. People quote it, argue with it, imitate it, paraphrase it and even try to attack it (see below). The author was evidently inside Compaq during their startup. He has a way of putting the reader right down on the ground in Texas on a sweltering summer night, drinking a beer with the engineers, poring over IBM's blueprints and schematics on the eve of the great clone wars. He understands at first hand why Compaq became the fastest growing company in history while their 150 competitors went right out of business. It's an important technology investing lesson. I also enjoyed a surprising chapter called Smart players, Dull winners. It says bright people have an especially hard time beating the stock market, and has some ideas about what they can do about it. The book is a primary source.

the author tells you great insights into finding technology companies with a potential of laying the foundation of great networks. As far a electronic networks, they will continue to gain expandability with existence of internet. Good penetration into the market by hi-tech companies is extremelty crucial for viability and strong revenues. Future communication will be very different,and messages will have to be protected by security. Author also mentions to detect a company with protected and secured network in order to maintain high profitability. Good insights into the tech field. I am glad I bought the book. It increased my awareness of the technology and communication industry.

There are tons of these books and this one is pretty good but "Gorilla Game: Investors Guide..." is better. I would recommend getting that book before you get this one.

The chapter on "Networks as Money Machines" is required reading. Once you see the principle, it's obvious. The really colossal fortunes built on technologies -- railroads, airlines, power companies, telephone companies, broadcasting companies, pipelines, computer companies, and even the Roman Empire -- have all been created by their networks, not their devices. So one lesson is, ignore the technology of the device (chip, locomotive, computer, airplane, war chariot, whatever) and concentrate on the simple, underlying network, which is the money machine. This book is about how to tell -- in advance -- whether or not a network can become profitable or stay profitable. Gianturco explains what signals to look for in plenty of time for you to buy or sell their stocks. This is a breakthrough book and it is no wonder Adam Smith calls it "Definitive."

High-tech stocks are almost impossible to buy below their book-values, and their businesses are hard to understand. No wonder, Warren Buffet stays away. Nevertheless, technology continues to be one of the most rewarding areas to invest in. Gianturco analyzes the criteria that a small investor can use as a guide in this volatile sector.

If you want the facts, this is the book for you! Michael Gianturco is a genius at presenting information in a way that makes you feel like a master of the subject. Michael allows you to see the whole picture of Technology stocks and what they can offer you. I have been investing in technology stocks for a year now. After reading his book, I now have a powerful resource to help me make more money. Put it to use for you in your portfolio selection

Perhaps a sign of the hi-tech times, this book was published in 1996 and is now so dated it is of very limited value. If you read newspapers, or some financial magazines, I think you're already well past what is offered here. One facet of the book I actually found a little irritating is the tendency of the author to use copious amounts of filler between the tidbits of useful information.

There is not much new here. Not much worth thinking about. And quite a bit that is wrong or misleading. The author's favorite exampe of a tech "winner" is Compaq. If you'd bought Compaq early you might now be a millionaire. Duh. But his example for internet stocks is... Netscape! The book was out-of-date on Netscape when it came out last year. The author brags about his fund's return. Well, if you read the Motley Fool you know he's done about average and you know that almost all his "conservative" advice is pretty worthless. He has a couple insights on timing and a couple interesting things to say about how tech stocks don't act quite as contrarian as the average Dow Jones stock and maybe a couple other insights.

Overall, thin gruel. Don't waste your money. Don't waste your time. (I read two chapters, skimmed three others, and put my copy on a back shelf to gather dust.)