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Tech will remain an area (sector) to be in. The big guys benefit from the networking effect. Here is my worst call ever: when GOOG listed they did it via a public auction (which was pretty unusual, most will engage an investment bank for the IPO) and were valued at $90 (before stock splits). I was into valuing companies on the financials. I had them overvalued at $90. The rest is history.

Financial analysis (value investing/micro) is really only necessary if:

(a) you are buying a stock (company) and you want to ensure that it is not fraudulent;

(b) you really want to understand its business model (which often requires looking past the financials);

(c) buying for the dividend stream;

(d) buying the entire company;

(e) other.

Value investing is usually micro. Fundamentals macro, however is a separate issue and I would argue, incredibly important. My focus evolved from micro to macro. Any analysis (technicals/etc) will always start from a macro analysis, moving down the hierarchy.

Tech, particularly now, will play an increasing role in society. The big guys will continue to win. There will of course be new entrants who potentially will grow huge. Finding those (which are value) is no easy task.

jog on

duc