Our recent purchase of Whole Foods is up 10% today and up more than that since we bought our first tranche a couple weeks ago. I’m going to step in and buy a second tranche in it today.
Since the advent of the iPhone and Android smartphone, I’ve explained over and over that the single best way to invest in the Smartphone and App Revolutions is by simply buying Google and Apple. Here’s me on my old show from Fox Business back in 2008, explaining why you shouldn’t overthink the idea of just buying these two stocks.
I’ve researched the industry for thousands of hours, scouring for every way to try to invest in “The Biggest Market in the History of the Planet,” LINK and I always come back to these two names, both of which I’ve owned for more than a decade. Sometimes when I look at my portfolio and my writings, I kick myself for having wasted time and money and reputation on anything but these two stocks when it comes to tech. Likewise, I’m convinced that each remain must-own stocks for any tech investor and here’s why — the App Revolution is just getting started.
I’ve always gravitated towards the term App Revolution rather than Smartphone Revolution because the App Revolution is much bigger than just smartphones. Tablets are mainstream because of the App Revolution that started with the Smartphone Revolution. But the Smartphone and Tablet phase of the App Revolution, which has now already peaked in growth rate and will likely peak in total units sold in another couple years, is just the beginning.
The Wearables Revolution is coming and total sales of Wearables will be bigger than the total sales of Smartphones and Tablets combined five years from now. Throw in some smart appliances, some smart cars and that whole Internet of Things concept, and we’re talking about billions of new units that will use some sort of operating system and user interface for you to control.
In this, Android has a huge advantage in that in addition to having already long ago hit critical mass, there are endless hardware/device/appliance/IoT manufacturers now developing their apps on Android. Apple’s going to make lots of new form-factors and wearables and will eventually license more of the iOS part and the operating system itself to appliance and car and IoT manufacturers too, but they’re already late and not even close to making that kind of a seemingly drastic move.
In this first phase of the burgeoning Wearables Revolution, Apple will also focus on making profits from selling the wearable devices themselves first. And isn’t it remarkable that with all those companies out there trying to make a cool Android Wearable have failed while all indications are that Apple Watch will be the first runaway and mainstream wearables success.
Anyway, stick with Apple and Google. They’re still by far the best ways to play the Wearables Revolution phase of the still burgeoning App Revolution which is now well on its way to becoming the single largest market in the history of the planet. And the App Bubble bloweth.
PS. Here’s one of the most important Cody Underground podcasts I’ve ever done. Your risk profile and approach to investing has to, by definition, be as unique as you are.