Time to sell Alphabet/Amazon/Apple?

I have a reasonably diversified portfolio of funds as my main investment but as much for fun I bought a few shares in these three two years ago.  Best thing I ever did investment wise of course and a silver lining in these Covid times but having doubled in that time and with the whole Brexit/US election/unemployment/insolvency/winter of who knows what to come is it time to get out and maybe buy back later after the (inevitable?) crash?

 
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  • MaxiRobriguezMaxiRobriguez Forumite
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    Brexit won't impact on the profitability/growth etc of Google, Amazon or Apple. If anything your investments would likely grow in price if GBP falls against the dollar, which I think is more likely than the alternative. US election/unemployment la la is also unlikely to impact. These are global corporations, which will still be heavily used whether or not one old man wins or the other.

    What would cause a crash is if the growth expectations many have for these companies are not met, or become clear they won't be met. 
  • Username999Username999 Forumite
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    If they have doubled in value I think I would sell half and diversify into other stocks.

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  • PrismPrism Forumite
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    Maybe they will crash. Or maybe we will look back in a few years time and think weren't they cheap back in 2020.
  • blue_max_3blue_max_3 Forumite
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    max... said:
    I have a reasonably diversified portfolio of funds as my main investment but as much for fun I bought a few shares in these three two years ago.  Best thing I ever did investment wise of course and a silver lining in these Covid times but having doubled in that time and with the whole Brexit/US election/unemployment/insolvency/winter of who knows what to come is it time to get out and maybe buy back later after the (inevitable?) crash?

     
    That's called timing the markets and incredibly difficult to do. If you are feeling fearful, you may be better selling. 
  • steampoweredsteampowered Forumite
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    There's only one thing I can say for sure. Tech stocks could go up, or they could go down. Nobody can tell you which way they will go.

    The question then becomes a risk assessment. Are you happy to accept the risk of tech stocks tumbling in value, in order to benefit if they continue increasing? Or would you prefer to diversify your investments so that you do not have all of your eggs in one basket? 

    Username999 made a good suggestion. Perhaps it would be a sensible idea to sell some of your Tech stocks - so that you still have exposure to the Tech sector, but you are a bit more diversified into other parts of the global economy. In that case a crash in Tech stocks will still damage your portfolio but not as badly as currently.

    I disagree that a crash is "inevitable". If that was the case, the stock price would already reflect that.
  • ChesterDogChesterDog Forumite
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    The fact that you put the word inevitable in parenthesis and with a question mark after it means you already know it's not applicable.
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  • edited 30 September 2020 at 12:37PM
    max...max... Forumite
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    edited 30 September 2020 at 12:37PM
    Thanks chaps, yes it's not inevitable of course but things ain't exactly looking rosy for the coming months to put it bluntly and although other sectors are likely to be hit much worse surely a proper shakedown will also affect the tech giants to some extent.  
    Yes, time in the market not timing the market and all that - I have that time but just feel this is rather a unique situation of much greater magnitude.
    I have plenty of exposure to these techs in funds anyway - these stand alone shares were the first I have bought in maybe 30 years and are a small part of a portfolio - under 5% in truth but just thought it would be interesting to hear opinions.
    Maybe best to sit tight and as always mitigate any losses by just buying more if they do come steeply downwards.  
  • ThrugelmirThrugelmir Forumite
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    After an exceptionally good run there's no harm in top slicing and diversifying your portfolio. That's if you've some alternative investments in mind. 
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  • AlanP_2AlanP_2 Forumite
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    You could move on to 3 * Bs instead once you sell them. Double up again, and repeat with Cs - by the time you get to Z you'll be richer than Jeff Bezos.
  • DireEmblemDireEmblem Forumite
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    All three could be considered tech stocks, but they are also all global, and relatively highly diversified.

    Amazon has some interesting products in the pipeline that could further growth - its new contactless payment system for example.

    Apple - 300m mobiles were sold in Q1 2020, and only 40m were iPhones, so a lot of room to expand still, and they are making headway in India (20% import tax on goods, however Apple are looking to produce in India).  Then you have their subscription offerings - Apple TV, iTunes, news and soon Fitness.  The fact they have a large cash war chest that I think is roughly 10% of the mCAP, they have a lot of room to manoeuvre.

    Alphabet - not so sure on this one.  I think they are still used for over 60% of internet searches, but I cant see where their future growth would be generated from.  They have dabbled in mobile phones with little success, and I think their attempts to monetise a subscription based model for YouTube similar to Netflix I also see as a flop.

    In all honesty, there are worse companies to hold at the moment.  You could top slice and diversify, but that also then just averages out your returns.  I think it all depends on your exposure to each company, and your appetite for risk.  I wouldn't have any more than 5% of my investments in each, but that's just me.
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