Seven tech stocks that can broaden your -2-

   S&P 500                             26.2%         19.5                                                  5.3%                                     12.0% 
   S&P 400 Mid Cap                     16.5%         14.3                                                  3.3%                                     11.0% 
                                                                                                                                          Source: FactSet 

The seven stocks have performed well this year and you can see that their forward P/E ratios are high relative to the indexes. West said these stocks "consistently trade at a premium to the market because of their durability of growth, high returns on capital and high free-cash-flow conversion."

"Costar is the most expensive," he said, "because of the large investment they are making in their Homes.com residential real estate service," which they are building as a competitor to Zillow Group Inc. (Z), he said.

The Buffalo Mid Cap fund has returned 25.9% this year, through Dec. 19, compared with returns of 25.4% for its benchmark, the Russell Mid Cap Growth Index, and 16.5% for the S&P 400 Mid Cap Index. For five years through Tuesday, the fund returned 93.7%, compared with returns of 91.8% for the Russell Mid Cap Growth Index and 81% for the S&P 400 Mid Cap Index.

Don't miss: This is a good time to invest in a bond fund. One manager has an advantage over his largest competitors.

-Philip van Doorn

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12-23-23 0730ET

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