Investors’ considerations of price in technology investments

Investing in technology is currently not cheap, but wealth managers and investors can access the opportunity while keeping valuation in mind. According to Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, investing in technology is expensive at the moment, with some US tech giants experiencing incredibly high valuations. However, Timing when to invest and when to exit, while maximizing returns, is a challenge for investors.

Storm Uru, who co-manages the Liontrust Global Technology fund, believes that the opportunity in technology is significant and just beginning. However, he is cautious about excessive valuations and sets target prices for the stocks he owns. If a stock exceeds the target price, he sells it unless the fundamental reason for owning the stock has improved. Smith focuses more on companies that facilitate artificial intelligence (AI) rather than pure AI companies due to more attractive valuations in that sector.

Uru also believes that companies benefiting from AI, rather than being AI companies themselves, are worth investing in. This approach has become increasingly interesting to him. Overall, both experts emphasize the importance of considering valuation when investing in technology while also being aware of the potential for exponential growth.

Investors must keep an eye on valuations when it comes to investing in technology. While there are many opportunities available in this sector, it can be challenging to time when to invest and exit while maximizing returns. Dan Smith suggests focusing on companies facilitating AI rather than pure AI companies due to more attractive valuations.

Storm Uru agrees with Smith’s approach but also emphasizes caution about excessive valuations. He sets target prices for the stocks he owns and sells them if they exceed those prices unless there is a fundamental reason for owning them.

Both experts agree that investors should consider valuation when investing in technology while also being aware of potential exponential growth opportunities.

Investors looking for ways to access technology investment opportunities while keeping valuation in mind should consider working with wealth managers like Dan Smith or Storm Uru who have experience navigating these markets effectively.

By Samantha Johnson

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