Take The Risk Out Of Tech

Article Excerpt

The Internet and other communications advances get the word out on new technology almost instantaneously. The best new products build up huge sales overnight and the products they replace see their markets evaporate just as quick. Many investors try to deal with this situation by chasing after every available scrap of information or opinion. But information changes continually, and opinions are often wrong. You’re better off to confine your tech investments to stocks that can build what you might call a captive or at least loyal market. A good example is Beckman Coulter, one of our long time favorites, which has more than doubled for us in the past five years. Every time Beckman sells a new machine, it acquires a new customer for its supplies and maintenance services. It’s a modern version of the Gillette formula: sell the razor cheap, then cash in by selling replacement blades. BECKMAN COULTER INC. $59 (New York symbol BEC; Conservative Growth Portfolio, Manufacturing & Industry sector; WSSF…

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