The Instigator
epicray1
Pro (for)
Tied
0 Points
The Contender
Sdio
Con (against)
Tied
0 Points

Big Tech Companies Are Not Good Long-Term Investments

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Voting Style: Open Point System: 7 Point
Started: 11/30/2015 Category: Technology
Updated: 11 months ago Status: Post Voting Period
Viewed: 188 times Debate No: 83259
Debate Rounds (4)
Comments (1)
Votes (0)

 

epicray1

Pro

Anyone can accept.

Definition of "not good long-term investments": investments that will cause an investor to eventually lose money or make a minimal amount of money in the long span of time.

Round one: Acceptance
Round two: Main arguments
Round three: Counterclaims and additional arguments
Round four: Final rebuttals (no additional arguments other than rebuttals)
Thank you.
Sdio

Con

I accept but would like some clarification. What is your definition of long term? It can be argued that every company on Earth would be a risky investment because eventually they'll collapse/merge/get bought out.
Debate Round No. 1
epicray1

Pro

epicray1 forfeited this round.
Sdio

Con

Still waiting...
Debate Round No. 2
epicray1

Pro

Sorry for accidentally forfeiting a round. It has been an extremely busy week for me.
Just for some clarification, by "long-term", I meant for 15+ years, and by "big tech companies", I meant any company that relies mostly on technology.

Companies that are based off of technology or the internet are the most vulnerable companies. Just ask Zenith Electronics. Technology, at this time, is a thing that is being innovated and being advanced by people every second of every day. Because of the innovation of technology and the fact that this innovation can be extremely hard for current tech and internet companies to catch up with, many technology companies can quickly rise to power and then be knocked from the throne by other companies that have the more advanced technology. The iPhone, for instance, has only been around for eight years, but is has already been dominating the markets when it comes to profit and it is extremely popular among many of the youth in today's culture. This signature technology rose to power quite quickly. Another tech company, AOL, also rose to power quickly, but it quickly got knocked from the throne by other internet service providers. Frankly, when you look at the history of many tech company giants, most of them had experienced their peak for only a couple years before falling. Only a few tech giants, like Microsoft or Apple, have been experiencing success for 10+ years, but Microsoft has been having plenty of problems lately and is now vulnerable to slipping out of its prime while Apple can easily be taken out of its prime when the next new tech fad comes back in.

In conclusion, tech companies usually cannot last in their prime for very long when compared to many other great businesses, like Coca-Cola, a company that has been satisfying its shareholders for many decades now. Wise investors like Warren Buffett have often avoided tech stocks in the past. He hasn't completely shied away from tech companies, but he tends to avoid them most of the time. Mary Buffett has also written in her Buffettology books that big tech companies are not "consumer monopolies", or great long-term investments. Therefore, if you want to invest in a company that will provide you great returns for a long time, don't invest in tech companies.
Sdio

Con

Sdio forfeited this round.
Debate Round No. 3
epicray1

Pro

epicray1 forfeited this round.
Sdio

Con

Sdio forfeited this round.
Debate Round No. 4
1 comment has been posted on this debate.
Posted by epicray1 12 months ago
epicray1
@Sdio, you may post you main arguments and rebuttals in round three and may post your final rebuttals in the last round.
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