Most investors who focus on valuation have a hard time figuring out what to do with technology stocks.
Tech companies rarely trade for the low measures of earnings and asset value that are the traditional hallmarks of value-oriented investors.
The average PE ratio of a tech stock going back 40 years is an eye-popping 32, so that’s not really going to pop up on a value-oriented screen.
To complicate things further, many tech stocks (including leading companies in the sector) don’t show a profit, so traditional value and even some growth investors pass on what turns out to be a monster of a stock.
But you know I’m not your traditional investor.
I’m always on the hunt for new and innovative investment strategies ideas, and recently I’ve made some wildly profitable discoveries that I want to share with you…
It isn’t a big secret that I love REITs and that most people have far too little of their money in this total return powerhouse sector.
Real Estate has been at the roots of many of the biggest fortunes in history.
REITs have much higher dividend payouts than most stocks and tend to do better than the stock market in bad markets.
In spite of all the reasons to own REITs, most people don’t own many of them in their portfolio.
A lot of folks that do own REITs prefer to use funds or ETFs because they think that real estate is complicated and tricky, requiring professional management to make the buy and sell decisions.
Wall Street has done a masterful job of selling that idea to the public and collected billions in fees for providing their desperately needed expertise to the public.
My research has shown that it’s really not all that complicated at the REIT level. Here’s why…