100% tech stocks here. It’s why my net worth is up 40% this year. I’m staying this way for at least another 5 years.
Which stock / ETF did you buy?
I have AMZN, AAPL, NFLX, MSFT, SHOP, RNG, BILL, DOCU, ZM. No ETFs.
That's smart and you got balls. As warren buffet said: "Diversification may preserve wealth, but concentration build wealth"
Don't you fear risk of some of these tech stock going down at some stage?
I expect volatility but I’m also expecting another tech bubble in the next 5-10 years and I’ll sell into that bubble. I’m holding until things get really out of hand. Tech is the way the world is moving and I want to take advantage of that trend.
How do you know the tech bubble is here? Six-figure forward PE ratios like in 2000?
These posts summarize my thoughts pretty well without having to type it all out from scratch. In short, I think things need to get a lot crazier for me to feel like we're in a legit bubble like the 60s or the 90s.
https://joefahmy.com/2013/11/13/bubblehttps://joefahmy.com/2013/12/13/stories-1999While the software stocks I'm in (SHOP, ZM, RNG, BILL, DOCU, AVLR etc) may not be profitable at the moment, it's because they are growing at 30-50%+ per year and are spending money to continue growing at that pace to eventually take over the world. With gross margins of 70-85%, whenever the growth slows and they decide to focus on profitability, they will be insanely profitable and the market knows that. They have legitimate revenues, not like a bunch of the stocks of the 90s which may have had no revenues at all. AMZN, NFLX, MSFT etc are huge and 'expensive' but they are also growing at like 30%/yr, something we've never seen before. Tech is truly doing things that are 'different' this time, but will eventually end in a mania bubble like the 90s. We're just not there yet IMO.
Stocks with no revenues like SPCE and NKLA, I agree with you their runs were not much more than wild speculation or pump and dumps. Those stocks are 'bubbles' but they are few and far between, and are not driving the market like the tech stocks we all know.