Why I'm Investing in the Global Technology Feeder Fund

I was thinking about what to write next. Right now, after reaching the minimum that I intended to invest for the Philippine Equity Smart Index Fund--I decided to do an update on the ATRAM Global Technology Feeder Fund. This is part of the feeder funds that I'm starting to invest in right now to broaden my investment spectrum (read here). A bit of the report from April 2022 and May 2022 would be as follows:

April 2022

May 2022

The figures for April 2022 and May 2022 show the companies where the money gets invested during two months as well as the regional exposures. I guess most of the regional exposure is based in the USA for this reason--the funds are American-based. Yet, it has slowly diversified by adding into other countries. For example, Samsung Electronics is from South Korea. Although not listed, having a 4.6% exposure to the People's Republic of China means that there's the possibility that the feeder fund may have picked Xiaomi Inc. but it's not in the top ten holdings. Though, there's the possibility that Xiaomi Inc. may become part of it.

Warren Buffett (from what I heard) originally didn't want to invest in technology stocks. I may have not been admitted into B.S. Information Technology (BSIT) after my Associate in Computer Science (ACS) course because my programming grades were too low. However, I feel that I could still make some money out of IT stocks (sell when the market gets higher) through this feeder fund. It wouldn't be instantaneous (and I'm hoping to invest at least PHP 8,000.00 each for both of my feeder funds) but I could at least get some pieces of inventory from technology companies.

Just think about Buffett humbly admitting his mistake. The Korn Ferry also gives this insight on Buffett with the two major companies:

But Apple and Amazon have evolved, of course, beyond just being tech companies. They are firms with powerful brand names and competitive edges beyond tech. To be sure, both tech firms, along with a few others such as Google and Facebook, have been like that for a decade or longer. When viewed that way, says Chad Astmann, a senior client partner and co-head of Korn Ferry’s Asset and Wealth Management practice, Buffett’s positions in Apple and Amazon are actually more aligned with his core investment philosophy than it is a departure.

“His investments in Apple is to gain ownership of the firm’s ability to create brand value as a consumer goods company, à la P&G [Procter & Gamble], and not necessarily for its ability to create groundbreaking technology,” Astmann says.

Apple CEO Tim Cook agrees. “He obviously views Apple as a consumer company,” Cook said in a CNBC interview Monday following his appearance this weekend at Berkshire Hathaway’s annual meeting, a closely followed event among Wall Street titans. Cook described Apple as a consumer products company, saying that though Apple is in the tech industry, technology should be in the background and that the consumer should be at the center of what its products do.

Seeing Apple and Amazon as among the top pics gives me confidence in the long-term investment. It would mean that small as a fraction as it is--holding on to investments in foreign stocks may be more beneficial than if I kept buying stuff I don't need on Amazon or get a brand new iPhone (since I prefer not to use highly branded products). The other fund allocation such as Alphabet (Google) or Samsung might continue to add value to the stock in the long run.

With the US Dollar (USD) strengthening against the Philippine Peso (PHP)--it might be a good idea to invest minimally like PHP 1,000.00 to PHP 2,000.00 per month or even per quarter to minimize loss. Meanwhile, a weakened PHP may mean I might as well buy more of the Philippine Equity Smart Index Fund with any spare cash. Though I'm eager to hit the PHP 8,000 mark before 2022 ends and I'm nearly hitting it.

Meanwhile, I'll just need to think of technological development. I remembered how I was amazed at the DVD technology's fast loading speed. Anybody who at least the first four Playstations would've probably been amazed at the loading speed. The Playstation vs. the Playstation 2 had a big difference in the loading speed and disk capacity. Anybody who was born in the 1980s may have experienced the Nokia phone before going to several phones. I've had a Nokia phone (three models), two Samsung phones (both gone), and my current Xiaomi POCO M4 Pro. Before, we had bulky TVs and monitors. Now, we have LCD flat screens. I was thinking about the development of technology hear and then. Electric toothbrushes, Alexa from Amazon, Google assist in the phones (and China should remove the ban on Google to maximize the potential of their glorious Communist state), refrigerators with safety features, wireless vacuums by Dyson, etc. should be a clue as to why investing in technology stocks (even indirectly) might be a good thing.

These ATRAM feeder funds would be a good start to getting more exposure to the international market. This would be able to invest in foreign stocks without much of a hassle. It would be a good idea to get a GCash, invest at least PHP 1,000.00 per month in this fund (and aim to reach at least PHP 8,000 within a 12-month mark from the date started for beginners).

References

Websites

"Buffett Goes Humble on Tech" by Kevin Cashman and Chad Astmann
https://www.kornferry.com/insights/this-week-in-leadership/buffett-technology-learning-agility#:~:text=When%20asked%20why%20he%20didn,in%20tech%3A%20Amazon%20and%20Apple.

Comments

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