Savvy Investors Are Buying Blockchain Technology Stocks
$IBM, $GBTC, $BR
The technology known as blockchain is what the cryptocurrency market is built on. However, that is not its only function, it is also being used to change nearly every industry that deals with transactions and ledgers.
Yes, there is Key connection between blockchain and cryptocurrencies, because without blockchain, cryptocurrencies could not exist.
And Yes, there is a big difference when it comes to investing in a stock that focuses strictly on cryptocurrency Vs one that focuses on the technology that drives it.
1 stock that is as close to a pure play on cryptocurrencies as you can get is Bitcoin Investment Trust (OTCMKTS:GBTC), which basically tracks the price of Bitcoin.
So goes the price of Bitcoin, so goes GBTC’s share price. But while bitcoin and other cryptocurrencies may end up being huge winners in the years ahead as the blockchain revolution continues, there are far less volatile investment ideas available to investors now.
There are many stocks currently benefiting from this technology trend, and some better than others, you want to minimize the risk and have a lot of upside potential over the long term.
Blockchain Stocks: Broadridge Financial Solutions (BR)
BR provides investor communications and other solutions to the financial sector, and it’s one of the pioneers in its industry, and it is $16 billion company is that it has emerged as a standout when it comes to implementing blockchain technology.
Many see BR as boring because much of its business centers on facilitating proxy votes and other financial transactions, but the stock has been anything but.
Take a look at its performance so far this year. It is up more than 50% YTD and easily beating the 8% return on the S&P 500. With momentum continuing to power this trend leader there is more Northside ahead.
Blockchain Stocks: International Business Machines (IBM)
IBM (NYSE:IBM) may not be the 1st company that comes to mind when discussing blockchain technology, it has a been in the process of shifting its business model for a few years now.
Revenue has declined annually as a result, but considering the blockchain portion of revenue also remains low there is huge Northside potential that could be the catalyst to turn Big Blue North.
The stock is down 4.5% YTD and has failed to keep up with the broad benchmarks. So, the current weakness could be presenting a solid buying opportunity. IBM is an Aristocrat stock that pays out a 4.3% dividend.
It is also worth noting that there are blockchain ETFS (exchange-traded funds) for those who want to take a broader approach to this trend. But, Shayne and I believe that the best strategy is to build your own basket of stocks and these BR and IBM should be considered to capitalize on the shift in how business will be conducted in the decades ahead.
Have a terrific weekend
Latest posts by HEFFX Australia (see all)
- Hocquart History: A classic prep on a new path - August 7, 2020
- Hocquart Longines Preview: A battle of three parties - August 7, 2020
- Five head-to-heads we could see in 2020 - August 7, 2020