This is the next big tech sector boom.

It’s going to be big. Real big.

And if history is any guide, there are going to more than a few 53,000%+ winners.

The Best Buy and Hold Investment For the Next Five Years

One of the best investments of the last decade has been the cloud computing sector.

“The cloud” has allowed every company, employee, and home user to store massive amounts of data, music, movies, and software remotely.

Everyone from Amazon (AMZN) and Microsoft (MSFT) has harnessed the cloud to grow and make increasingly consistent revenue through monthly subscription-based services.

It’s not hyperbole to say cloud computing is one of the primary reasons the Nasdaq is back close to tech-bubble levels.

While the big tech companies have benefited greatly from the cloud, the big winners have been the “pure plays.”

Take Akamai (AKAM) as an example. By making the transfer of data from the cloud to the user fast and easy, it has become an integral part of the cloud computing evolution. It makes the cloud work for big-spending customers including CBS, software giant SAP, NASA, and many, many more.

Akamai share prices reflect it’s position and growth too. Its shares were at lows around $1.33 a decade ago when cloud computing was just an idea. It has ridden the cloud ever since. Last week Akamai shares set a new all-time high above $73 per share. From their 2003 lows to their recent peak, that’s total gains of more than 53,000%.

The real reason the cloud grew so tremendously is the consistent levels of higher investment in cloud infrastructure and the spending on cloud-related services.

Here’s a chart that shows have fast it has grown over the past few years:

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As you can see, the growth has been remarkable consistent and will continue to be strong.

There’s no recession here. Not even close.

The tech trend we’re looking at now though will be bigger than the cloud.

It’s cybersecurity. The similarities are too strong to ignore.

For example, Chief Information Officers (CIO) who command hundreds of billions of dollars worth of technology budgets, near uniformly agree security is their top concern.

A recent survey of CIO’s from Piper Jaffray found the #1 concern is security. And as a result, CIO’s expect to invest more in security than they ever have before.

The survey found 75% of CIO’s were going to make security their top spending priority in 2015. That’s up from 59% of CIO’s last year.

Higher priority means more spending. And as we saw with the cloud, more spending means massive potential growth for companies focused on providing security.

Now, your editor realizes there are many aspects of cybersecurity. Some are proactive like firewalls. Others are reactive like having staff on hand to deal with successful cyber attacks. And we can talk for weeks about all the different options available.

The main point I want to focus on is that it’s growing and will continue to grow.

At this point, cybersecurity growth is one of the surest bets in the market today. And some of the world’s true long-term investors are still getting positioned for years of growth ahead.

This is How a Bull Market Begins

These investors are not Wall Street’s hot money who don’t look further ahead than one or two quarters.

We’re looking at what investors with five-year, ten-year, or longer horizons on their investments.

These true long-term investors are venture capitalists.

They really only make money in one way. By getting in early, growing a company, and then cashing out in an initial public offering or takeover.

That process, even in the most successful cases, takes years. Often it’s at least five years.

Venture capitalists don’t invest unless they know there will be a huge market in a few years.

That’s why cybersecurity is attracting much, much more investment from venture capital. They know this is going to be a very big market a few years from now.

Frankly, cybersecurity is a big problem. But it will be bigger and bigger. It has years of growth ahead of it just like cloud computing did a decade ago. And it’s a very good sign to see “slow money” betting more and more on it.

The chart below from the MIT Technology Review shows that venture capital has flowed steadily in cyber security startups over the last few years:

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Remember, these investors aren’t trading stocks here. They can’t cash out of a trade in a few weeks or a few months. They’re in it for years and years. That’s just the nature.

So when we see cybersecurity startup investment climb steadily from less than $1 billion in 2010 to $2.4 billion last year.

We know they see the same multi-year boom ahead in cybersecurty that we do.

The goal of every investor should be to find a multi-year boom, jump on it, and ride it until it ends in a fantastic bubble of euphoria.

You’ve seen it over the last few years in commodities.

We’ve personally rode what happened in a big way with the biotech boom.

The cloud computing boom was right there too.

In time, cybersecurity will have delivered huge returns to investors too. It will have it’s share of 53,000% winners and plenty of other big winners by the time it has run it’s course.

So if you want to ride a boom comfortably over the next few years, cybersecurity is one of the few areas you still can go along safely and comfortably know years of growth are ahead.

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