This Is The Makeup Of My 10 Stock Portfolio

By | June 24, 2020

I will tell you but there are rules: I don’t want to influence you to buy particular stocks, especially without investigating them for yourself. So no company names or stock ticker symbols.

Second, I will not give you enough information to figure it out for yourself.

All I can say is that I have invested in 10 technology stocks, 3 of which are large cap stocks and the remainder are either small cap or micro cap stocks.

Who Told Me To Buy Technology Stocks?

Funny question, nobody really. Warren Buffett generally says to buy business you understand. And he buys businesses that would have been great back in the 60’s… and often have stood the test of time.

I, on the other hand, have been a technology guy all my life. I currently own my own technology consulting business. I started out in software in the 80’s, owned a product distributorship at the end of the 90’s, went to consulting in the 2000’s. When I owned my own product distributorship with my wife, we wrote our own website and updated it regularly.

A long-winded way to say I understand technology, generally. And I’ll buy companies where I understand their tech and business model.

What Are Technology Stocks?

The primary business of a technology company is not always technology. Perhaps it is distribution. Perhaps it is advertising. Perhaps medical services through technology. But technology is big in companies I buy.

When Did I Start Buying Technology Stocks?

I decided that tech was my trade 3 – 4 years ago. But I really didn’t understand what made a technology company good until maybe a few months later. Small, fast growing, perhaps unprofitable, companies that seem to appreciate the fastest.

Is It A Good Idea To Buy Technology Stocks?

If you understand the businesses, yes technology seems to be a good place to be. If you understand railroads, car manufacturers, or aerospace, you may want to stick with those kinds of companies.

Is Small Cap Better Than Big Cap Stocks?

It is always better to get a successfully growing company when they are small. Large cap stocks will get you exposure to international markets, but will often move very little from day to day, month to month, year to year. Unless they are seriously growing for some reason.

There might be a small number of large cap tech stocks that would be good to own. See what you think for yourself.

Will I Keep The Same Portfolio Makeup In The Future?

Maybe. Maybe not. I am likely to keep stock of 10 companies into the foreseeable future. But maybe I’ll buy some non-technology stock. Maybe I’ll move more into small caps or maybe I’ll slide into another large cap.

What is most important is that I own stock in 10 great companies.

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