With big gains and exciting headlines, it’s no wonder why billionaires are bullish on the Technology Sector this quarter.
As the biggest sector of the market, eclipsing Industrials and even the Financial Sector, the Tech industry provides us all with exciting news and developments.
Recent trends have shown that the sector is a hot investment area: In the first couple of months of 2017 Apple and Google stocks were up around 15% and payment processing giant PayPal was up almost 20% Q/Q.
New innovations and inventions are always keeping us on our toes: Apple is gearing up for the release of its 10 year anniversary of the iPhone and Amazon has recently won patents for several designs, like warehouse robot technology designed to replace janitors and a pretty cool floating sky warehouse that looks like something that was created after reading an H. G. Wells novel.
The strong stock gains and futuristic developments have prompted billionaires to add more tech-focused stocks to their portfolio, as reflected in the latest IBLN index rebalance. Let’s take a look to see what they’re buying!
Allocation to the Information Technology Sector within the IBLN Index was up 20% since the last rebalance, with the addition of new stocks including Salesforce, Micron, and Symantec. Activision Blizzard and Electronic Arts were also added this quarter – these adds represent an interesting trend reflecting the rise of a new eSports industry.
All Big 5 tech companies are included in the IBLN index: Apple, Google, Amazon, Facebook and Microsoft. Many of these stocks are owned by more than just one or two billionaires: Facebook is owned by an incredible 9 billionaires on our list (Robertson, Tepper and Loeb to name a few), Apple is owned by Buffett, Einhorn and 3 others, and 7 billionaires own Google Class A shares (GOOGL is up 74.15% over the past 3 years, by the way).
As you can see in the Historical Sector Allocation graph below, the Tech sector has been gaining ground as a percentage of the Index over the past year – the sector represents double the proportion it was a year ago:
IBLN Index Historical Sector Allocation
Check out the full IBLN Index holdings here.
The increasing representation of Technology stocks within the IBLN Index shows the strong positive sentiment that the billionaires have for the industry. It’s a growing trend and presents itself as a huge investment potential for the savvy buyer.
The future of the industry relies heavily on innovation and invention and with inspirational leaders like Jeff Bezos, Tim Cook and Mark Zuckerberg at the helm, you can rest assured your money is being invested in a thrilling place.
There is no section of the modern economy that the tech industry hasn’t touched, and future trends are only expected for tech usage to become more prominent.
Grab yourself a piece of the pie while it’s still hot: invest in the IBLN Index today!