PICKING AN ELECTRONIC BRAIN
Andrew Kaplan has headed Fidelity Investments' $1.8 billion Select Electronics Fund since August, 1996. Through June 2, his fund was up 17%.
ON WHETHER TECH STOCKS ARE OVERVALUED
''No, except for networking stocks. Earnings for every [other] major group, including semiconductors, personal computers, telecommunications, and software, have hit new highs. There are still reasonably priced stocks around.''
ON WHAT'S REASONABLY PRICED
''My rule of thumb is to never pay over 30 times next year's earnings. It's really hard to make money on valuations any higher than that. A company's profits may grow 100%, but not forever.''
LARGE TECH STOCKS' SAFETY VS. SMALL TECH STOCKS'
''The only relative safety is when you buy at a low p-e. But with large-cap stocks outperforming small caps recently, I've shifted my fund weighting toward smaller tech stocks.''
HIS FAVORITE TECH SECTORS
''Semiconductor equipment makers, telecommunications equipment suppliers [wireless and other emerging portable markets], and applications software makers.''
SECTORS TO AVOID
''I'm worried that a personal-computer price war is coming as companies vie to expand market share.''
Return to main story
| 
