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Over the past 35+ years, my investment strategy has evolved considerably. Today, I consider myself a seasoned value investor, looking for undervalued stocks and looking for big cash dividends. But this is not the only approach my wife and I take to our family capital. After all, from 2009 to 2021, growth stocks easily beat value stocks by a large margin.
Value and growth stocks
From mid-2022 onwards, my wife and I will be building a new family portfolio with future dividends and Capital gainInitially we bought an underrated selection FTSE100 and FTSE250 Stocks in real estate that generate income.
But portfolios based solely on value/dividends/income may underperform the wider market in the long run. This is especially true during periods of hyper-enthusiasm, as happened in 2020-2021.
Therefore, my wife and I decided to buy US mega-cap growth stocks to balance our new portfolio. And this led us to invest in his four “American Goliaths.” All of these are among the largest companies on the planet.
Four US tech giants
Last October 13th, USA S&P 500 exponential and tech oriented NASDAQ Composite Both indices hit 2022 lows. And while these indices were recovering, my wife bought four US growth stocks for our family portfolio in early November.
These high-tech titans alphabet, Amazon.co.jp, appleand MicrosoftNot coincidentally, these companies are among the four largest US publicly traded companies. To me, acquiring these businesses was like making a big bet on the 2024 comeback of American companies.
I expect these four companies to lead the next recovery once the current financial turmoil in the US (high inflation, rising interest rates, slowing growth) abates.
Achievements so far
For the record, earnings on these stocks have been minimal so far. Here are their respective performances so far:
Outstanding winners so far microsoftshares have risen nearly a tenth in four months, apple and alphabet (Google’s parent company) is making a small profit.and online retail colossus Amazon has resulted in very little paper loss so far.
The overall return for all four growth stocks is 2.1%. Given the volatility of US tech stocks, this is a fairly modest return. I’ve been eyeing the stocks of these tech leaders for a long time, but avoided buying these overinflated stocks during the 2020-2021 “bubble of everything.”
It’s been a while since I played
All four stocks have fallen significantly from their 2021 highs. Here are their respective performances over the last 12 months:
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After these four tech megacaps plummeted, I felt like I was buying value stocks rather than growth stocks. Despite high valuations and minimal or non-existent dividends.
Based on my usual valuation standards, these stocks still look pretty expensive. But experience has shown that U.S. technology stocks have a long history of outperforming earnings growth. So my wife and I will continue to use this her 4 megacap innovator for years to come!
#Bought #U.S #Growth #Stocks #Tech #Recovery