Forget Bitcoin! I’d buy FTSE 250 tech stocks to get rich

first_imgForget Bitcoin! I’d buy FTSE 250 tech stocks to get rich Simply click below to discover how you can take advantage of this. See all posts by Rupert Hargreaves The recent FTSE 250 market crash may cause some investors to buy other assets, such as Bitcoin for its perceived defensive qualities.After all, the virtual currency has almost doubled since its March lows while the FTSE 250 has gained just over 25% in the same period.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, while Bitcoin might look like a great alternative to equities, the market has a long track record of recovery from even its most challenging periods. One sector, in particular, is charging ahead of the rest of the market.Bitcoin vs tech stocksBitcoin’s perceived defensive qualities look attractive compared to other assets in the coronavirus-ravaged economy. But the cryptocurrency appears to be a poor investment when compared to FTSE 250 tech stocks.Technology companies have been among the biggest winners of the coronavirus crisis. As economies around the world have been placed into lockdown, consumers have become increasingly reliant on technology to help with everyday tasks, such as shopping, meeting friends and completing work.The coronavirus crisis has forced many companies to change their working practices. And many businesses are now saying they will allow employees to work from home forever. This suggests that our relationship with technology has increased dramatically over the past few months and is unlikely to go back to the way it was before the virus struck.FTSE 250 opportunitiesAs such, technology companies that have been big winners over the past few weeks, are likely to see continued growing demand for their products and services over the next few years.For example, shares in FTSE 250 IT infrastructure solutions provider Softcat are up nearly 40% from their March low.Analysts are expecting the company to report high-single-digit earnings growth this year on the back of increased demand for its products and services.Other examples include security software business Avast, Computacenter and Electrocomponents.The significant advantage these FTSE 250 tech companies have over Bitcoin is the fact that they produce cash flows.Bitcoin is only worth as much as buyers and sellers are willing to pay for it. This makes it difficult to value. The price of the cryptocurrency will only increase if there are more buyers than sellers. Unless it continues to gain traction as a store of wealth, this may never happen.On the other hand, FTSE 250 companies produce cash flows. This makes them easier to value, and these cash flows should grow over the long term.Indeed, as the world becomes increasingly reliant on technology and technology solutions, it seems highly likely that earnings will continue to grow steadily for the foreseeable future.As these cash flows grow, company valuations should increase, pushing up the share price. That suggests investors should see steady returns over the long run.Bitcoin does not offer the same kind of long-term potential. Therefore, it may be best to avoid the cryptocurrency. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Rupert Hargreaves | Monday, 25th May, 2020 | More on: ^FTMC center_img Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Softcat. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shareslast_img

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