I first bought Apple stocks $AAPL in 2016 when it was $90/share and now it is well above $400/share and a $2 Trillion company. I've profits of over 300% on Apple. At some point, Apple was the largest position in my portfolio at 15%, now it is only 3%. Do I regret selling my Apple shares?
Apple will undergo a 4-1 split soon. Fundamentally, this doesn't change anything but splits are generally welcomed by Wall Street. Since Dow Jones $DJ30 is weighted according to price and Apple is its largest component, this split will be bad for the index.
In 2016, I was new to investing and when Warren Buffett $BRK.B started investing in Apple, I became interested. It was a company with $60 billion in FCF per year with a market cap of only $400 billion. It made sense to buy. Apple stocks were cyclical because of iPhone sales and I took the opportunity to buy. In 2018, there was the trade war and a market correction, I added more shares until Apple became 15% of my portfolio in 2019 when the stock price recovered.
The stock was then being valued as a tech stock and I sold. Another reason why I sold Apple is because it was the largest company in the world and had big correlations with the S&P 500 $SPX500 and it was better to invest in smaller companies.
Since I was betting on 5G, I invested in Skyworks Solutions $SWKS . It made no sense holding both Apple and Skyworks Solutions at the same time. Over the long-term, I am more bullish on Skyworks Solutions than Apple.
The mistake that I made was buying too much of Apple and then selling too much. If it was still about 5% of my portfolio, I would have held it. Just because today, the market is giving a X33 PE ratio on Apple doesn't mean it will always do so in the future. If in the future, Apple earnings keep rising but the markets values the stock at a lower multiple, then it will go down. That's why I won't be buying any new Apple shares today. But these shares that I currently own, I'm holding forever.
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