Caller has 62% of his portfolio in Apple. CNBC hosts freak. (video)

From Fast Money’s “Buy, trim or hold Apple?” which aired Friday:

Investors ask questions of the traders. With CNBC’s Sara Eisen and the Fast Money traders, Guy Adami, Steve Grasso and Mike Khouw.

Cue the video:

My take: Nidal should hang out here. He’d be in good company, and he might get better answers.

24 Comments

  1. Romeo A Esparrago Jr said:
    IMHO it depends.
    For me, what percentage of 100% of his portfolio represents his TOTAL net worth? If it’s below 50%+, I think the answer is obvious.

    From what people have posted here, I’ve read some of you state AAPL is/was 100% of your portfolio. But I know that doesn’t represent your total net worth.

    Based on where my wife & I are in our lives, our financial advisor says that we would still have a comfy lifestyle if AAPL share price dropped to zero at anytime.

    3
    January 15, 2022
  2. Romeo A Esparrago Jr said:
    Oh, and right now, we buy, trim, and hold AAPL.
    Trimming for funding portfolio diversification, for paying for big expenses like a down payment, for selling squirts for fun when there are peak highs when AAPL is on an upward trajectory, for gifting/donations, and sometimes (always reluctantly LOL) for taxes. Hold is the dominant majority of our AAPL strategy.

    4
    January 15, 2022
  3. David Emery said:
    A friend who’s a more sophisticated investor than me says “Diversification is for those who don’t manage. Better to buy a few things based on your understanding.” That’s kinda “go big or go home,” but it’s not an argument for gambling, as much as for “keep your bets simple. so you fully understand them.”

    In my case, most of my money is in 403b (non-profit equivalent of 401k). The investment choices for the 403b were substantially limited by my (former) employer a couple of years ago, but I’m happy with the fund selection I still have, and the service I get from TIAA is pretty good. Of the stuff not limited by the 403b account, 2 stocks (AAPL, and wife’s employee VRSN) are the lion’s share, about 2/3 AAPL. Both of those stocks have done quite well for us.

    4
    January 15, 2022
  4. Jonny T said:
    My own experience tells me Fund Managers manage money to avoid embarrassment for themselves. They just need to do okay and go guessing over all kinds of diworsification. I made a confident bet on Apple after 7 years of accumulated knowledge about it, and as a result my % in AAPL is ridiculously high. I don’t invest in business models I don’t approve of, or companies whose behaviours I don’t like. So, I struggle to find anything that approaches todays Apple; its ethics, its products, its silicon, its services, its billions of R&D, its customers, and on and on.. Call me stupid or simple if you want to, but it’s been fun so far, even when trying to keep a cool head during its 30, 40 and 50% drops. Which, with hindsight, were rarely if ever justified by anything related to the company’s performance or prospects.

    6
    January 15, 2022
    • Bart Yee said:
      A YouTube comment on the above video: “How well can you sleep at night with it being 62% idk…”

      My reply:
      “Many of us sleep quite well. Literally every time AAPL has taken a dip, even February 2020, it’s a long term buying opportunity or ride it out (same for January 2019 from Trump China tariff trade war). AAPL / Apple has always recovered, retaken it’s former price and grew from there. Why? Because they know what they are doing from products and services, have a very solid and profitable business and model, and support their users with a very sticky ecosystem. Apple users worldwide have discretionary income and are quite willing to spend because they see value in Apple products long term and services overall. Plus Apple R&D keeps pushing where new products and markets can occur.

      Pick any Apple dip and ride it out, not saying it goes up forever, but it doesn’t stay down forever either.”

      I learned (a bit painfully) not to panic or capitulate during a heavy downturn if you didn’t go to cash quickly. With Apple I rode out the downdrafts and added some too.

      Apple is resilient and we investors must be too.

      6
      January 15, 2022
  5. Jerry Doyle said:
    “…. My take: Nidal should hang out here. He’d be in good company, and he might get better answers.”

    I agree fully with your take PED. (I am writing here about my Apple investment, not my daughter’s Apple investment)…. I attempted to have a diversified portfolio while holding Apple, but Apple’s growth continually in later years usurped all my other holdings disproportionately in size. To balance my portfolio meant selling shares of Apple, which I refused to do. So, I sold all my other holdings and used those funds to go “all-in” on Apple after listening to emeritus Apple 3.0 Joseph Bland tell Tim Cook that Joe was “all-in” on Apple. Tim, upon hearing Joe state that fact did not flinch at all. For me, Joe’s statement sucked the oxygen from my lungs. I always was taught to “diversify” your investments. I literally mulled over almost daily Joe’s statement that left an indelible imprint in my investment mind. I discussed with another FOB many times about going “all-in.” After one year of discussions, analyzing and realizing that I live, eat and sleep Apple I decided to go “all-in.” The result: I almost daily have to slap my face asking “if this is real” what Apple has given me.

    I do not worry about Apple. I sleep like a baby. Notice the commentator says what emeritus Apple 3.0 Joseph Bland says: “hold Apple, don’t trade it.” I go one step farther than brother Joseph. I say, “hold Apple, don’t trade it and don’t sell it.”

    10
    January 15, 2022
  6. Commenter (me) keeps 95% of his portfolio in Apple. Has held those shares for 16 years. Bonds? Yuck! Index or mutual funds? Yawn. I went to my credit union to see if they offered any CDs paying 33% interest. They chuckled and offered me a .5% CD.
    My long-ago broker but still good friend at Merrill Lynch quietly tells me taking his ‘quietly-offered’ advice all those years ago was the best move I ever made.
    I frame it this way:
    1. Apple is the equivalent of a phone company or oil stock in the early years of the last century.
    2. Many use the product, they can’t live without it, and they don’t switch.
    3. If I were employed at Apple I’d probably have most of my retirement funds in my employer’s stock as a result of options granted. I’m an Apple retiree that never worked there, though I trained many to use their products, with Adobe PageMaker, FrameMaker & Photoshop mostly.

    5
    January 15, 2022
  7. Bart Yee said:
    I don’t see what the problem is. This fellow had 62% of his portfolio in companies that produce the dominant high end smartphones by units and revenue and whose loyal 1 billion users upgrade every few years and a Fortune 9 company ahead of the entirety of the leading search company. And another company building the dominant tablets unit and revenue wise Fortune 99. And another company that has the best high end computers powered by breakthrough silicon chips and has seen industry leading growth Fortune 89, and yet another company with the dominant smart watches and wireless earbuds, Fortune 83 company. And a service company growing such that it doubled revenue in under 4 years and is now a Fortune 46 company? Plus and R&D company poised to disrupt two markets with innovative AR and Automotive EV products and who know what to come.

    So yeah, this guy is mightily diversified with segment leading companies on every front and continued growth prospects. You have to wonder why the other 38% of his portfolio hasn’t kept up.

    7
    January 15, 2022
    • Excellent example of Risk Assessment, Bart. Risk Management was a subject I occasionally taught under contract as part of Project Management training in prep for ISO certification in the UK & EU, as well as at international firms including Newell, Microsoft and Boeing. Oddly, the alternatives to investing in Apple come with far greater risk to those edging into retirement using so-called balanced portfolios.
      It could also be attributed to my love of roller coasters, especially the old wooden ones!

      2
      January 15, 2022
      • David Emery said:
        “at international firms including … Boeing…”

        Huh. That’s something that in my observation on the big Army FCS contract that Boeing did poorly, and reading about 737 MAX that poor performance on FCS got carried over (by the PM who became Boeing’s CEO) to the rest of the company 🙁 🙁

        0
        January 15, 2022
        • Yes, David, I often wonder if my lessons ever had a lasting impact on corporate & government practices. I taught there when the Bell Boeing V-22 Osprey was under development. Carly Fiorina was still at Lucent when I taught PM & CRM there. A shame Bell Labs melted down. Some employees who passed my courses put that on their resumes and got hired elsewhere.

          1
          January 15, 2022
  8. Ken Cheng said:
    Was Warren Buffett calling?

    2
    January 15, 2022
  9. John Konopka said:
    I am diversified.
    I own stocks in an iPhone company, an iPad maker, a Mac maker, a software services company, a smart watch company, an AirPods company, an App Store and more.

    9
    January 15, 2022
  10. Bart Yee said:
    It never occurred to me till now that there’s someone else who is “all in” on Apple: Apple is.

    They don’t buy or merge with anyone else big to produce value. They buyback their own stock because it’s the most valuable (and undervalued) stock / company they know and trust. They go all in on their own technologies while seeking out the best outside tech available to assimilate into their products when prudent. And Apple is all in on themselves and their processes.

    10
    January 15, 2022
    • Jonny T said:
      Which surely means it is okay for us to be as well!

      3
      January 15, 2022
  11. Hap Allen said:
    Once upon a time, AAPL was a tiny tot in my portfolio. Years later, it’s not.

    Is it a growth stock? A value stock? A quality (quality shareholders?) stock? Maybe all of them?

    I value Nassim Taleb’s concept of the precautionary barbell. While AAPL is far from risk-free (one end of the barbell), my thinking is tending in that direction.

    Still–à la Taleb–and considering my overall situation, I remain positioned to avoid total ruin.

    1
    January 15, 2022
    • Jonny T said:
      It is actually just a business that has, and still does, stay true to its core values.

      3
      January 15, 2022
  12. Michael Goldfeder said:
    After Warren Buffet bought big time into Apple, he was asked about his investment and basically said it’s the best business model he can think of, and he’d like to buy the entire company. That was enough for me to go all in on the stock. Watched it closely for a few years but missed pulling the trigger at the price point I was looking to purchase. It went back up and I was kicking myself for waiting. Then I was fortunate to get in right after Trump started his tariff war with China in December, 2018 that tanked the stock.

    Between Apple 3.0 information, everyone’s comments, and the Apple buybacks when the stock price drops, sleep has never been an issue.

    I do remember in May, 2019 when the stock hit $200 pre-split, I was thinking of selling. It shortly dropped back down and I hung in until it went back up to $225 in November, 2019. Thought about selling again but didn’t. Covid hit, then I miraculously found the Apple 3.0 site as a lurker, and maintained my shares. More importantly my sanity based on what everyone here was posting. You folks are tremendous pools of information!! Each and every one of you!

    Finally signed up in August, 2020 and that was around the same time the 4 for 1 split was announced. Jerry Doyle’s investment story of $3,500.00 back in the mid 90’s was all I needed to keep this ride going!

    Can’t thank everyone enough for all of their knowledge and experiences as it has been beyond anything I could have imagined. Toss in “zoom calls” as another form of engagement and it makes it much easier to maintain a 100% position in Apple. Nidal needs to have CNBC tell him about Apple 3.0. That will solve all of his concerns 100%.

    7
    January 15, 2022
  13. Bruce Oran said:
    I have been gradually investing in Apple since the return of Steve. Over time, like Jerry Doyle, all of my other holdings became more and more dilute. In spite of much pressure and concern by my spouse, I now, at the near end of my career, have more assets than I ever dreamed possible. It has also simplified my estate planning, as my children and grandchildren will benefit from inheriting my stock on a step-up basis. Having owned my shares through several splits and re-investing all dividends, I have accumulated quite a bit over these many years. In spite of the occasional dips, the fundamentals have not changed and my near 1 stock strategy has required little effort with lots of reward. The hardest part has been convincing my accountant, wife and children of the wisdom of this approach. It is no longer doubted!

    8
    January 15, 2022
  14. Walley Francis said:
    I have owned AAPL since 1995 and last purchased around 2002.I have sold a bit of it as I needed for purchases (car, house) but not much. I have always said that AAPL is worth more than the market is valuing at and so I continue to hold. I do occasionally donate some shares to charity for tax reasons. It is currently about 80% of my net worth but why change anything just because of that? If apple goes to 0 I will still be OK. I have no interest deworsefing my investments and I like the dividends

    6
    January 15, 2022
  15. Walley Francis said:
    Thank you Sactojoe.
    In my early years of investing in AAPL I did not know what the future held. I just knew that it was undervalued and I knew a bit about what it had and what it could be worth.
    I even had a Newton Pad 2100 but knew that it represented what Apple was doing wrong . Great products but little strategic direction. So many products introduced and left to die with no support.

    Steve cleaned all of that out and focused on what was most important. He had learned from his first time at Apple and at Next.

    3
    January 15, 2022

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