March 17, 2001
Jim Glassman sees software companies
Jim Glassman sees software companies like Microsoft, Adobe, and Symantec as defensive tech stocks in this bear market.
He likes software companies because "Software is like the computer chip industry except you donít have to build a factory. Itís like the pharmaceutical industry except you donít need FDA approval. Itís like Hollywood without the $20 million salaries."
In other words, software companies have low capital costs; they rely on "gathering a bunch of really smart people together to create something new and special." The downside is that low capital costs allow some other company to gather their own bunch of smart people and make something better.
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