3 growing tech stocks I bought this month

In times like these – a potential market correction – prudent portfolio management is king.

Regular readers of my articles might know, I have a psychological, otherwise unimportant, rule of thumb to hold around 33% cash in my stock portfolio.

I choose 33% cash as the upper limit because, in the rare case the market value of my portfolio falls 50%, my portfolio’s balance will then grow to 50% cash, 50% fully invested.

More than 33% and I run the risk that my returns fail to beat the market. That is, the ALL ORDINARIES (INDEXASX: XAO).

The best thing about holding cash though, is the flexibility to make and take opportunities when they arise. With the All Ords down 4.3% this past month (and even more since September 1), I feel like a kid in a candy shop. The only difference is, I’ve got around 25% cash to spend!

Now I know what you’re saying, 25% is a little below my rule of thumb. But it’s a rule of thumb. And when markets’ correct, it’s OK to spend a little bit more. As I’ve done this month.

Usually, I wade into a stock and try not to get swept away with the current, if the share price falls rapidly thereafter. I’ll wait a little while and buy some more. Provided nothing has changed with the company.

3 tech stocks for your spare cash

One of the tech stocks I bought recently was Nearmap Ltd (ASX: NEA). I’m kicking myself for not buying the $180 million geospatial mapping provider sooner. I was impressed by the company’s full-year results back in August. I believe it’ll become a much more profitable organisation in the medium-term, even without the US expansion going exactly to plan. The prospect that it may pay a dividend is icing on the cake.

Another one I bought recently is Computershare Limited (ASX: CPU). Computershare is the leading share registry company in a number of countries, connecting thousands of companies to their valued shareholders. As a result of its exposure to North America, Computershare will benefit from a falling AUD and the prospect of rising US interest rates. With a wide (and growing) economic moat, operationally, its future is also looking bright.

Lastly, BigAir Group Limited (ASX: BGL) is a wireless network provider for campus and business environments. It provides an alternative to conventional fixed line networks which enables it to provide a backup for business-critical computing. The company has efficient operations and provides its services in a niche market (something I really like). Although, it also has scalability. The company’s most recent acquisitions were earnings per share accretive in FY14 and with further synergies set to be recognised in FY15 the long-term appears more profitable for shareholders.

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I’m happy as punch to be holding these three new tech stocks in my long-term portfolio (I recently bought one more but, due to trading restrictions, I can’t talk about it for a few days). In my mind, I’ve been rewarded for keeping a healthy cash balance before the recent market setback. When everything was rosy.

Of the three companies, I think Nearmap is probably highest on the risk-reward curve. But it provides excellent long-term upside from today’s prices, so I’m happy. But I think all three companies would make a great addition to all enterprising investors’ portfolios!

However, there's one more tech stock I think you should definitely consider adding to your portfolio. In fact, our top investment advisor Scott Phillips has just named it his #1 stock pick for 2015 and I think it is a GREAT buy at today's prices. Best of all: You can get his full report on this ultra-promising ASX stock for FREE.

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Motley Fool Contributor Owen Raszkiewicz owns shares of Nearmap Ltd, Computershare Limited and BigAir Group Ltd. The Motley Fool owns shares of Computershare.  

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