Industry in Focus:

 INDUSTRY BRIEF: Software is a broad category that spans everything from consumer applications to business databases and computer network management.  The industry subcategories have experienced their own booms and busts -- often depending on their stage of maturity -- but broadly speaking, software has been one of the great growth industries of the past quarter century.

The stocks of software companies have taken a hit lately, in large part due to contractions in valuations rather than a downturn in their businesses.  Indeed, last quarter software stocks in aggregate posted earnings growth of 30%+.  And while some of the marquee stocks like Microsoft and Oracle have fallen out of favor for the moment, many lesser-known names such as Activision Blizzard continue to do well even through these tough times.

 Bottom Line: It's hard for any investor to ignore the ongoing importance and growth potential of software companies in the 21st century. While these stocks are not known for high dividend yields (or any dividends at all, for that matter), they are known for exceptional rates of growth and profitability.  

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