Buy Apple Stock in 2021?
I have been holding Apple stocks $AAPL since 2016 and it is the oldest position in my portfolio. Today, it is about 2% of my portfolio with over 400% profits but at some point, it was over 20%. Why did I buy Apple? Why did I sell Apple? and will I buy more?
In 2016, I was new to investing and I was following Warren Buffett $BRK.B . He was investing in Apple and I looked at the stock. The market was bearish on Apple then, and I invested in it. In 2018, Apple crashed again and I bought more until it became 20% of my portfolio. The PE ratio was 10 and it made sense to buy Apple which was undervalued.
In 2019, I started taking profits on Apple since it was too correlated with the S&P 500 $SPX500 and the markets itself were getting expensive. I wanted exposure to 5G and I got it through Skyworks Solutions $SWKS .
But I still held Apple since it is still a great company. The business has been changing and they are now less dependent on iPhone sales. The brand is still very powerful. The amount of FCF they generate a year enables them to buyback shares to pay dividends. With 2% of my portfolio, I believe I can still hold, this is a stock to hold forever but at current price, I won't buy more.