I think that investing, and staying invested, in the ASX's leading tech shares makes a lot of sense during the coronavirus share market volatility.
Investors are trying to figure out which industries are worth buying into.
Travel shares like Webjet Limited (ASX: WEB), Qantas Airways Limited (ASX: QAN) and Sydney Airport Holdings Pty Ltd (ASX: SYD) have been smashed. Maybe they're too cheap to ignore and will be great performers over three years.
Bank shares like Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) are being priced as though we're in the middle of the GFC. It could get there, but they have built up strong capital positions for events like this.
Retail, cinemas, theme parks and casino shares that require crowds of people to do well are being severely hit.
Tech shares don't need crowds of people to do well.
Think of the various offerings. Altium Limited (ASX: ALU) has Altium 365, a cloud offering so people could work from home.
One of the main selling points of Xero Limited (ASX: XRO) is that it's a cloud product.
Cargo shipping remains important so that essential healthcare items, food and other items make it to where they are needed. WiseTech Global Ltd (ASX: WTC) has an important function to play, even during the lockdowns.
Businesses will need to keep operating during these times or be ready to get back into action as soon as possible, when possible. That's why businesses like Technology One Limited (ASX: TNE) are important.
Education and healthcare technology requirements aren't going to disappear, so businesses like Citadel Group Ltd (ASX: CGL) will continue to be needed.
These businesses are the ones with attractively-high margins and good growth prospects with the increasingly technological nature of the world. Most tech shares don't have large debts on their balance sheet, so they're relatively safe compared to businesses with sizeable debt and concerning debt covenants that rely on the physical presence of customers.
You want to own and buy the best businesses on the ASX that you can for the long-term.
