RiskReversal Pod Dan Benton's Rules For Tech Investing In 2025
May 9, 2025
Dan Benton, CEO of Benton Capital Management and a former tech analyst at Goldman Sachs, shares his wisdom from decades in the industry. The conversation covers his '20 investing rules' for technology, the evolution of giants like Apple and Microsoft, and the pivotal shift toward AI and AR/VR. Benton emphasizes innovation and management quality as key drivers in tech investing. He also speculates about the future of companies like Nvidia and SpaceX, stressing the significance of strategic foresight in navigating this dynamic landscape.
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Dan Benton's 50% Tech Returns
- Dan Benton achieved 50% annualized returns in tech investing from 1993 to 2001.
- This outperformed the S&P 500, which averaged 25% returns during 1995-1999, without leverage.
Early Tech Valuation Mindset
- Tech stocks initially traded at value multiples due to rapid product obsolescence fears.
- Investors doubted sustainability since no revenue was expected from current products in 10 years.
Mitigate Risk in Tech Stocks
- In tech investing, when estimates are being cut, expect only positive earnings surprises to move stocks up.
- Prioritize risk mitigation as tech is a controversial and volatile sector.
