Tuesday, April 16, 2019

5G may be a game changer

With download speeds up to 100 times more than current wireless bandwidth, this may be a game changer for mobile devices, from cell phones to your home's connectivity to the internet in general. Like all new technologies, there will be winners and losers -- as it should be. Those that execute well, will prosper. Those that don't, may die a slow and painful death. (This is an economic principle called creative destruction).

Back in January, Investor's Business Daily put together a list of 15 companies they thought had a better than average chance of succeeding with this new technology. (Granted, as of this writing, there is only one cell phone capable of using this technology -- made by Motorola -- and the networks, like AT&T, TMobile and Verison, are just coming on line, sort of...)

I put together this basket of stocks and did a mock portfolio investing an equal amount in each company. How did they do? All were up. The total profit on a $100,000 investment was about $23,000. Not bad. But remember, from Jan through April, the markets in general were higher, from 12 percent to 19 percent, depending on which index you're tracking. But I'd say these stocks mostly out-performed the market. 

Next Step: Narrow down the list; 15 are too many stocks to manage at one time for most private inestors. I will reduce this to 5 to 7 stocks based on 1) ROE; 2) Profit Growth; 3) Debt; 4) Moat; and 6) Managment and other very important factors. Stay tuned. 

Note: Change and %Chg are daily figures for April 15 (Market was down slightly for the day)

Do your own due diligence. Learn to research companies on your own. Then wait for the company to be fairly or undervalued. 

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