Opportunities in the “Picks & Shovels” of the Tech Sector (1:26)

Identifying the great, but out-of-the spotlight companies that support the current tech revolution

Tagged: Market Commentary Portfolio Strategy

Transcript

Chris Davis:		And when you think about the courage to buy when something is under a cloud and there's intense scrutiny, that's definitely been a strategy that's provided us entry points. But another strategy that's provided us entry points in technology is often just indifference or a side of the technological world that somehow is not garnering all the attention.
		It's sort of out of the spotlight in a sense. And so you think about companies like Texas Instruments, uh, where they're incredible ubiquity in electronic devices, but they maintain a low profile. They aren't selling the hot dot, the sizzle product, and yet they've built an incredible record not just in terms of managing their own business, but also in terms of the capital allocation discipline in their company.
		And that's been a compounding machine for a couple of decades now. And similarly, a company like Applied Materials, in a sense is everybody thinks about all the new semiconductor plants getting built and places bets on who the winners are and who the losers are, what we would say is that in a sense applied materials is the arms merchant to this arms race globally. They are the provider of the picks and shovels in this gold rush and again a fabulous management disciplined capital allocation and decades of record to look at and a very, very difficult business to discuss.