This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Software Rules the World

Stocks in this article: MSFT AAP RHT ISRG GOOG

NEW YORK ( TheStreet) -- Ever since our nation was founded there have been Americans doubting its survival, urging that we copy a rival.

In the earliest years of the Republic, this meant England. In the early 20th century, Germany became the model. Anti-communists wanted us to copy the Soviet Union. Later in the century it was Japan's keiretsu model that was favored. Now it's China.

But China is a century behind us. What it has perfected are the tools on which Americans like Henry Ford built their fortunes. Despite the bullet trains and new suburbs, China has yet to figure out what Americans have always nurtured -- the imagination that produces great software.

Take a look at that laptop on your desk. The brand may be Chinese, but inside it's running an American operating system, Microsoft (MSFT) Windows. That phone in your hand? Sure, it's made in China. But the software, the branding, and the experience are as American as a Macintosh Apple (AAPL).

The one market that counts most, in all the world, is software. It's the last product we have that's made entirely by hand. But it's more the product of imagination than of typing. And America dominates it.

As Red Hat (RHT) CEO Jim Whitehurst pointed out earlier this year, in a speech I reported on for, today's cloud software tools are like the auto-lathe of two centuries ago. We're still at the nuts-and-bolts stage of the information revolution, he said. There is much more to come.

Want to know who best uses these American-made tools? Americans. Who leads in transaction processing, whether credit cards or stock trades? We do. Who leads in robotics, in the mass customization that will remake tomorrow's factories? We do. Who created social media and the apps explosion? We did. Whose colleges do the best job of training young minds for the 21st century's challenges? Ours do.

My point isn't to deliver a pep talk. It's to point out that the fulcrum upon which our leadership rests is software. Most particularly, software that defines what Apple devices or Google (GOOG) clouds or Intuitive Surgical (ISRG) robot surgeons can do -- their operating systems.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs