The problem with technology is that there is always the danger of being run over by competition. So today, JDSU may look well-positioned to you, but if things change, as they always will especially in technology, there is no way to be sure that JDSU will reign in the longer-term.
So much for the longer-term. As for the short-term, things look lousy too, considering the overspending and overinvestment in technology in the past few years.
Insurance is something that doesn't change a whole lot. The concept remains pretty much the same. Insurance companies may use technology to do things better, but they are still doing the same thing.
The constant change in technology is the reason why we see so few franchises in that arena, when compared to, say, consumer franchises such as KO or G or DIS or HSY, or to drug companies such as MRK, JNJ and PFE, to name a few. The only tech company that has come close to be called a franchise is MSFT, and to some extent INTC. But for every MSFT, there are literally tens of thousands of companies that go bust or just manage to survive. |
