Yahoo! Inc Intel Corporation Microsoft Corporation Google Inc The Changing Of The Tech CEO Guard
Post on: 23 Июнь, 2015 No Comment
Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?
I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets — year-in and year-out.
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But really, besides the double-headed CEO thing, this was hardly news.
More than half a dozen disruptive tech trends are hitting Silicon Valley all at once, and, well, the industrys veterans arent getting any younger. And so, a quiet revolution is sweeping the top ranks of techs biggest and most powerful companies.
Heres proof: In the past three years, 10 top global tech companies have announced new CEOs.
And today Im going to show you how to invest in the 11 members (remember: Oracle takes up two slots) of this New Guard all at once for a price well below what many of these stocks cost.
This one investment has already thrashed the overall market by 46.5% so far this year.
Now let me tell you all about it
The Changing of the Tech CEO Guard
In my 30-plus years knocking around Silicon Valley, I cant remember a similar stretch of time with so many CEO changes.
Despite the huge pace of change in technology, Silicon Valley has long been home to a number of senior leaders who stayed at the top for many years.
Just look at Ellison, now 70. Since cofounding Oracles predecessor, Software Development Laboratories, in 1977, he had served as the companys only CEO. Thats a nearly 37-year tenure, one that Bloomberg lists as the longest in the current tech industry.
At Microsoft Corp. (Nasdaq: MSFT), there were only two CEOs for most of the companys history founder Bill Gates for 25 years followed by Steve Ballmer for 14 more.
Robert Kotick has held the CEO spot at Activision Blizzard Inc. (Nasdaq: ATVI) for roughly 23 years, and Steve Sanghi at Microchip Technology Inc. (Nasdaq: MCHP) is just a few months behind him. Next January, John T. Chambers will celebrate his 20th year as CEO of networking giant Cisco Corp. (Nasdaq: CSCO).
Jeff Bezos at Amazon.com Inc. (Nasdaq: AMZN), Steve Singh of Concur Technologies Inc.(Nasdaq: CNQR), and Scott Scherr at Ultimate Software Group Inc. (Nasdaq: ULTI) are all tied at 18 years. And Reed Hastings of Netflix Inc. (Nasdaq: NFLX) is right behind them with a 16-year stint.
Thus, until recently, Silicon Valley has placed a high priority on having stable leadership. Thats because its nearly impossible to find executives who have all the unique skills required to run far-flung global tech enterprises.
So a top tech companys board often must extend the CEO a long-term contract that includes a hefty amount of stock options. So, both the board and the chief executive have every incentive to lock each other up for many years.
But that dynamic is changing as the tech landscape shifts rapidly.
In just the past five years, weve seen the rapid rise of Big Data and the Internet of Everything as well as mobile and cloud computing.
These companies need great leaders who can adapt to the lightning-fast pace of change all around them. And thats why we pay so much attention to tech leadership.
We have a five-part system for investing in tech to put us on the road to wealth. Rule No. 1 states that Great companies have great operations and that usually starts with leadership.