Does it bother you that FAANGs make up over 10% of the S&P 500??

[underwrite]

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Originally Posted by copyright1997reloaded So let's say by magic the components of FAANG all lose half their market cap in an instant, while the rest of the market magically stays even. The result in the S&P 500 would be a 5% loss. Not the end of the world. My largest single stock holding is Apple. It didn't start that way, it started as a modest purchase of 100 shares at $19/share in October of 2000. It was an undervalued, cash rich company then...and remains so now.

Good points.

[underwrite]

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Originally Posted by mpeirce Yeah, I think along these lines too. I have a (used to be small) IRA account that I allow myself to play in a bit. I bought Netflix when it swooned down to $83. After it more than doubled, I sold half and held the rest. It's now just over of $400. (I bought it because I know people there and it's been a well run company and didn't believe the mini-crash was warranted) I also picked up some Amazon at $790 and it's now over $1700. And I'm FIREd now because of AAPL. Tech is a fascinating sector and I love it! (That being said, the vast amount of my holdings now are in broad indexes like Vanguard Total Market and a couple of international index funds.)

Wow. Nice trades.

[underwrite]

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Originally Posted by UnrealizedPotential That's part of it. Also, I don't want to be caught in a market correction where everything just tanks. I've been there. It's no fun at all. So I want at least a chance I won't get killed like I did in 2008. I can't take that kind of risk anymore. Eventually I recovered from 2008, but mentally thinking about stocks I am in a different place now. I am not working anymore, but relying solely on my portfolio for income. That is a huge difference.

Definitely. I’m still working, but would rather avoid another full roller coaster ride like we experienced during the financial crisis.

I’d rather have lower volatility even if my gains are reduced.

[gerntz]

Won't surprise me if down the road some of the fangs aren't broken up due to being monopolies. Read something recently about 90%+ of online searches are done on one of the fangs.

[nash031]

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Originally Posted by ExFlyBoy5 You bought in 2013? Have you held onto it ALL (AAPL) since then? What is your target? $1000? I had a fair amount of AAPL but when it had DOUBLED, I sold most of it. I am a firm believer in the pigs/hogs analogy.

I bought some in January ($554 - $79 split adjusted) and some in August ($478 - $68 split adjusted). Made sense to me to buy more of something I thought was undervalued at $550 when it dropped an additional 20%. It's now just up over $190, about 10% over my value calculation. I'll look to sell when it's closer to 25% overvalued by my numbers, so target sell is ~$217 (split adjusted ~$1500) or higher for now. That value changes, obviously, with earnings numbers, etc. and I'm not firmly tied to it. If it continues its present run-up north of $200, I may well consolidate those gains. Otherwise, I'd be fine with holding AAPL longer if it works out that way. I had no money to buy when I first heard about the iPod back in 2003, otherwise I'd probably be retired by now.