A Simple Way to Profit From Computing Trends
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
David has a very simple strategy that he wants to share with investors: Buy mobile computing leaders, and sell PC makers. In 2011, 550.9 million smartphones and tablets hit the market, compared to 351.4 million desktops, laptops, and netbooks. And mobile device adoption is still growing very, very quickly. PC makers Dell and Hewlett-Packard may look cheap, but they are cheap for a reason -- because their futures don't look very promising. David doesn't think investors can buy just any company in the mobile space, though. Companies like Research In Motion and Nokia, previous leaders in the space, are behind the mobile curve and won't be able to catch up. Within their 10-Bagger, real-money portfolio, John and David have invested in the leaders: Apple and Google. Not only are both companies at the forefront of mobile trends, their stocks are attractively priced relative to their very bright futures.
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The article A Simple Way to Profit From Computing Trends originally appeared on Fool.com.David Meierowns shares of Apple.John Reevesowns shares of Apple and Google. The Motley Fool owns shares of Apple and Google.Motley Fool newsletter services recommendApple, Google, and Nokia. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.