Tracking tech to the top

Remember when you had to book holidays in a travel agent? When you fell out with real friends rather than blocking people on social media? When there were just four TV channels and regional radio stations were just run by the BBC?

No. No one can. We have chosen to forget such Neanderthal days and in 2019, we live in the fast, efficient and “available to everyone” now as there is no going back.

The genie is out of the bottle. The toothpaste is out of the tube. Even a no-deal Brexit cannot derail the progress of technology changing our everyday lives. As an investor, you can not only take advantage of the rapid progress in technology, but you can potentially make a buck on it, too.

Alphabet (Google), Amazon and Apple are three of the largest companies in the world. They are all tech stocks that have cemented themselves at the top of the corporate pile. Had you bought these stocks when they first listed and hung on to them, you would be sitting pretty now.

Your capital is at risk. Past performance is not indicative of future results.

Alphabet’s share price has risen 2,000% since listing; Apple’s has grown by 34,000%, but the real winner is Amazon, which has seen its stock rise a massive 95,100% since going public in 1997.

It is clear these companies are winners, but they also may have used up much of their growth potential. So where next?

Outside these titans there are plenty of other options. Some of the fastest growing companies in the UK are those developing new technology for an evolving world and they operate in sectors you might not have suspected.

Unlike back in the analogue days, when tech companies were those building computers and the programmes we would use on them, the term “tech” has grown to encompass much more.

JustEat, the app for ordering a cheeky takeaway, Rightmove, the website for lusting over property you cannot afford, and Games Workshop are all companies capitalising our expanding use of technology.

There are plenty of companies producing the component parts – semi-conductors, widgets – and even those mining the materials needed to make these, too.

But before disappearing down that rabbit hole, look at the technology you use today. Which seems to be evolving to meet your needs and which are you leaving behind?

You might not get a 95,000% uplift on your investment, but you will be heading in the right (irreversible) direction.

Learn more about Brexit and find popular markets here.

Your capital is at risk.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.