It's true, we're living in a rapidly-evolving technological world which will alter our lives long into the future.
From decentralised electricity and automation to big data and ubiquitous technologies, the coming decades are likely to be characterised by disruption and a power struggle between governments and big data providers.
For the investor such change can present opportunities for outsized returns.
Indeed, if your company is on the receiving end of disruption or long-term shifts in consumer trends, you'll likely be well on your way to generating market-beating investment returns.
Whilst, undoubtedly, the best place to find technology giants such as Apple, Google and Microsoft is overseas; there's a number of innovative technology companies trading right here on the ASX which you should know.
Here are five which deserve a spot on all Australian investors' watchlists.
- XERO FPO NZ (ASX: XRO) is a New Zealand-based cloud computing accounting software provider which is kicking goals for shareholders. Whilst not yet profitable, the company continues to present as a very compelling long-term investment given the disruption it'll likely bring to the SME accounting market both locally and abroad.
- Netcomm Wireless Ltd (ASX: NTC) develops and distributes devices for machine-to-machine (M2M) communication. M2M is forecast to grow exceedingly well over the coming decade as more of our everyday devices become internet-enabled. Netcomm specialises in M2M communications, with a wide and ever-expanding range of devices using fixed and wireless networks.
- Nearmap Ltd (ASX: NEA) is a junior technology company which provides aerial photography for individual, business, government and other large enterprise customers. Think of Google Maps, just clearer and more frequently updated. The company has announced its first commercial U.S. sales following its expansion into the USA.
- Technology One Limited (ASX: TNE) is Australia's largest publicly-listed software company, with operations in six countries. The company's growth has been impressive, with net profit after tax rising at 13% compound over the past 15 years. Technology One's customers include over 1,000 large corporate and government departments.
- SEEK Limited (ASX: SEK) needs no introduction among Australian job seekers but its international growth is worthy of particular attention. Through strategic interests in job sites throughout China and Brazil; SEEK could continue to disrupt traditional jobs markets for many years. Since growing revenues 20% in the half-year to 31 December 2014, SEEK International now accounts for 56% of group revenues.
Should you buy, hold or sell these five stocks?
Each of these five businesses are worthy of a spot on investors' watchlists, given their growth potential and track records. However at today's prices, personally, I'd have to say my favourite for new money is Xero.
