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Beware tech companies that could go the way of the knocker-upper


Beware tech companies that could go the way of the knocker-upper

When it comes to investing in tech companies, it’s essential to distinguish between two types of businesses. On the one hand are hardware companies, which can end up fighting for market share and, eventually, relevance. On the other are platform companies, which benefit no matter which technology ends up winning.


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Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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  1. A technology has been discovered (used for a billion years in nature) that is to genetic engineering what the brower and search engine is to The Internet.

    A major breakthrough has in genetic engineering and has given medical researchers unpreceded exacting control to control the human genome, using this CRISP process to cure diseases.

    In Queensland researchers at the CARP institution are approx 12-18 months from commencing human trials on their anti-ageing/anti-cancer pill using this exacting control over the human genome. https://www.carp.org.au/our-mission

    I have read through their experiment abstractions (I study genomic computation UCSanDiegoX: CSE181.1x) and formed the opinion that they are on the path to the fountain of youth. This could have major implications for every part of finance and government.

  2. Perhaps I’m wrong, but it started to sound as if Tesla may be in the background as part of the discussion (automotive industry, electric vehicles, not a platform company).

  3. “separating hardware technology companies from the platform tech companies that benefit no matter which technology gains supremacy.”

    The same principle as in the Gold Rush, when those who sold services that were needed, rather than those who went mining, the former were the ones who made the real money.

  4. Great advice for sure but statements like “and the inevitable shift, thanks to societal and environmental demands, to electric drive trains.” need to be regularly challenged. There is a very real possibility for example that hydrogen may replace carbon based fuels, resulting in the long term continuation of internal combustion engines. Societal demands can change, can be completely removed from commercial and economic reality, witness the tremendous support for the waste that household rooftop solar has led to, or the sudden concern at burying plastic waste in landfill because it may somehow affect the ocean….? sorry – still can’t quite join the dots there. When it comes to societal demands, fashion (and personal interest) beats facts every time thereby introducing greater levels of uncertainty in predicting logical outcomes.

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