Investors’ considerations of price in technology investments

Navigating High Valuations: The Cost of Investing in Technology

Investing in technology is not currently a cheap option, as some of the largest US tech giants have experienced incredibly high valuations. However, there are ways for wealth managers and investors to access the opportunity while keeping valuation in mind. According to Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, investing in technology can be expensive at the moment. 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.

Investing in technology can be an expensive option at present with some of the largest US tech giants experiencing incredibly high valuations. However, there are ways for wealth managers and investors to access this opportunity while keeping valuation in mind.

According to Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management investing in technology can be expensive at present with some US tech giants experiencing incredibly high valuations.

Storm Uru who co-manages the Liontrust Global Technology fund believes that there is a significant opportunity in technology but cautions against excessive valuations by setting target prices for stocks he owns.

If a stock exceeds its target price Uru sells it unless there is a fundamental reason for owning it.

Smith focuses more on companies facilitating artificial intelligence (AI) due to more attractive valuations compared with pure AI companies.

Uru also believes that companies benefiting from AI rather than being AI themselves are worth investing in.

Overall both experts emphasize the importance of considering valuation when investing in technology while also being aware of potential exponential growth opportunities.

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