Technology is involved in one way or another in almost everything in Western society. We use social media for social contacts, robots are used in factories to do the monotonous work, Artificial Intelligence is used to set up a web store as efficiently as possible and even the heads of lettuce are controlled by drones as they grow in the fields. The list is endless.
Companies and governments were already digitising their processes but suddenly last year this modernisation had to be speeded up. Children were required to take online classes, employees started meeting online from home en masse and local retailers had to find new ways to boost their sales via the internet or mobile telephone.
These new ways of working and learning will continue to be part of everyday life in the future. This means that technology will be constantly evolving and will lead to interesting opportunities for investors. An increasing number of private investors are turning to tech, while others are wondering how much longer growth can continue.
The returns of widely distributed baskets of technology stocks such as ETFs on the NASDAQ100 have been much better compared to the AEX INDEX or the SMP500 in recent times. So, the question is whether it will stay that way. And that, of course, is difficult to predict. As an investor, you know that predicting the financial markets is always difficult.
So, it is better to delve into the subject yourself, form a vision and draw up a strategy based on that.
And very important: stick to your strategy! An important question that you can ask yourself is, for example, whether it is smart to focus on a sub-area of technology such as Chips, Artificial Intelligence and Cybersecurity or whether it is wiser to invest more diversely in all sub-areas of tech by investing in an investment fund or an ETF. I am happy to help you with this, so do not hesitate to call or email me.
When we think of investing in tech, we usually think of the big American names such as Apple and Facebook, or the trendy Nasdaq markets and the ever-growing Chinese giant Alibaba. But closer to home in Europe, the tech sector is also growing fast and the landscape is changing rapidly.
Startups are sprouting like mushrooms and growing fast. In recent years, a number of these young companies have taken the step onto the stock exchange. “Our” Europe is, therefore, also enthusiastically participating in the tech revolution.
Swedish music giant Spotify is one of the most recognised tech companies in Europe, but it is not the only one. Elsewhere in Europe, new tech giants are springing up. Below * are five listed European tech companies that are currently popular with private investors:
▪ Cliq Digital, which was founded in Germany, is a major supplier of streaming music, audio plays, online games, sports and film.
▪ The French company, Gaussin, develops, among other things, electric and hydrogen-powered batteries for cars, aviation and shipping.
▪ Norwegian Nel Asa is a specialist in the field of smart technology for the storage and distribution of clean energy sources such as hydrogen.
▪ Nokia no longer make phones themselves – Microsoft bought this branch in 2013 – but investors are still happy to invest in Finnish Nokia, which now focuses on things like navigation and network infrastructure.
▪ Swedish PowerCell develops and produces fuel cell systems and was part of the Volvo group before becoming independent.
* Source: Binck.nl
If you would like to know more about this subject or would like to exchange ideas about your investment strategy, please let me know!
The companies and shares mentioned above and in this article should not be seen as an investment recommendation, but as an illustration of the current European tech sector and funds that are frequently traded by private investors.
Kaspar Huijsman is founder and director of Hugo Broker (former BinckBank Spain) and is also a passionate investor. In his columns, he writes about his experiences with both the stock market and the economy. If you have a question, please email [email protected].
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