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Update on tech stocks to buy: Just the other day, I was pondering the decline in PC sales - down 4.4% in the first quarter, compared to last year, according to market researcher IDC. And I assumed, without doing any research, this meant software was also down.
And I wasn't alone.
With the long-term decline in PC sales, dating back to at least 2012, many investors and the big-money guys on Wall Street are writing off software, too. On the surface, the logic makes sense: If people are buying fewer computers, they'll need fewer accounting, sales management, and word-processing packages.
But that's a superficial analysis. Turns out that increased sales of commercial software more than makes up for the decline in PC-related software.
This is why I always do in-depth research before sharing anything with you. Our seemingly impeccable logic can often lead us in wrong directions.
And the right direction is to stay focused on sectors that consistently generate profits and positive cash flow.
Today, I'm going to talk to you about one of the single best software investments you can make. With it, you'll start benefiting from the profits of the entire software industry, from the big dogs to the young and growing.
Here's how you get there...
Stocks to Buy: Here's How to Profit from the Software Industry
A recent report by Gartner says the software industry hit $407.3 billion in sales last year. Thus, at a time when many on Wall Street were gloomy about software, sales actually grew nearly 5%. And that more than made up for the roughly 10% decline in PC sales that IDC says the industry suffered in 2013.
The sector's staying power is one of the reasons I've always paid so much attention to the software industry. These firms don't have to invest billions in plant and equipment the way hardware companies do. Plus, the software industry runs on a licensing model, meaning that software firms often "rent" their products rather than selling them outright.
That's a business strategy that traditionally generates a bigger profit.
The challenge, of course, is identifying the best stocks to buy to profit from this sector transformation.
Fortunately, there's another way that I want to share with you now.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.