The Best Tech Investing Rule to Follow in 2015

Over the last couple of weeks, we've gone over what the tech landscape will look like in 2015.

Today, I want to show you which one Tech Wealth Secret will be your most important tech investing principle for the New Year.

First, I'm going to use this rule to illuminate three leading tech companies.

Then, if you use this rule correctly, you'll be quickly fattening your tech portfolio...

Go for Growth

Like I've been saying the past couple of weeks, I see plenty of growth ahead for technology and the U.S. economy through at least 2015. Consider that U.S. industrial production in November rose 5.1% from the same month in 2013.

tech investingAlso in November, the economy added 321,000 jobs. That means, for most of 2014, we've seen employment grow at more than 200,000 jobs per month, putting the nation on track for the strongest job growth since 1999.

And that's why Rule No. 4 of my five-part Tech Wealth Secrets will be crucial for your investing success in the New Year. Rule No. 4 says to "focus on growth."

More than any other sector in the economy today, high tech offers us the best chance of finding quality growth firms that consistently beat the market.

To show you just how dramatic an impact higher growth can have on tech stocks - and your wealth - let's take a look at three high-profit examples.

2015 Fast-Growing Pick No. 1: Avago Technologies

Let's start with Avago Technologies Ltd. (Nasdaq: AVGO), a Singapore-based chipmaker focused on two key growth sectors.

The company makes chips that speed up data centers used for cloud computing. It's also a key supplier for the iPhone 6 from Apple Inc. (Nasdaq: AAPL).

No wonder Avago topped analysts' forecasts when it reported its fiscal fourth-quarter results on Dec. 4, sending shares up more than 8% that day.

Avago reported earnings per share (EPS) of $1.99, ahead of the Street's expectation by $0.31.

In the days after that beat, Avago gave up some gains as the entire market came under pressure. But the growth trend is in its favor - over the past two years, Avago has beaten on earnings or raised forecasts several times, driving shares up 200% in the period.

Earnings growth is so key in this climate that even big-cap leaders can find their stocks in an uptrend when profits surge.

This next pick is already up 62% since May 2013 - more than triple the Dow's returns...

2015 Fast-Growing Pick No. 2: Adobe Systems

Take the case of Adobe Systems Inc. (Nasdaq: ADBE). The $37.35 billion market-cap stock was largely out of favor when I told you about it back in May 2013.

Wall Street felt the big software firm behind PDF files and Photoshop was out of touch with cloud-based computing.

But I told you to keep an eye on Adobe because it was moving away from its old-school method of selling software. Instead, it had unveiled a new subscription model called Creative Cloud.

And it all came together for the firm on Dec. 12. With its new strength in the cloud, Adobe beat on earnings for its fourth fiscal quarter. But the cloud growth really impressed investors - Adobe came in with 644,000 new cloud subscribers, more than 20% above analysts' projections.

Investors jumped on the news, sending shares up 9% on Dec. 13, the very day the Dow Jones Industrial Average lost 300 points. And since our original 2013 chat, shares are up 62% - more than triple the Dow's return since then.

2015 Fast-Growing Pick No. 3: Intel

Back on Aug. 13, I told you Intel Corp. (Nasdaq: INTC) was poised for share-price appreciation because it was targeting new technology to help it earn more money.

I noted that Chief Executive Officer Brian Krzanich has moved heavily into both mobile computing and wearable tech.

Earlier in the year, Krzanich had unveiled two new wearable devices: a pair of earbuds for fitness tracking and a "smart" headset that works as a voice-controlled digital assistant.

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He also paid $90 million to acquire the division of ST-Ericsson that makes microchips for wireless GPS. And he unveiled new chips optimized for smartphones and tablets.

So, I wasn't surprised to see Intel's stock rally shortly after beating forecasts for third-quarter earnings on Oct. 14. That day, the stock gained more than 2%.

Intel only beat consensus forecasts by $0.01 that quarter. But the trend is what mattered most - the Silicon Valley giant has beat analyst forecasts in four of the last five quarters.

Since the Oct. 14 earnings release, Intel is up roughly 14%. That's 64% better than the Standard & Poor's 500 Index's gain in the same period.

Thus, by using Rule No. 4 of my Tech Wealth Secrets, you greatly increase your odds of finding winning tech stocks that generate big profits.

And that's only going to become more important in the year ahead as investors focus on earnings growth as barometers for both the U.S. economy and the stock market.

In other words, focusing on growth does two things - it gives your portfolio stability in a choppy market, and it accelerates the rate at which you create wealth.

More from Michael Robinson: On Oct. 13, 2013, Michael predicted shares of Apple stock would surge to $1,000. Just over a year later, readers who bought AAPL stock on his recommendation have made gains of 48%. And it's going to happen again. Those who follow Michael's lead this time could see gains of 27%. Here's what will propel AAPL stock to a presplit price of $1,000 per share - and when it will get there...

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.

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