{"id":34227,"date":"2016-03-31T17:34:22","date_gmt":"2016-03-31T21:34:22","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=34227"},"modified":"2016-03-31T17:34:22","modified_gmt":"2016-03-31T21:34:22","slug":"the-portfolio-we-should-all-own-forever","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=34227","title":{"rendered":"The portfolio we should all own &#8212; forever"},"content":{"rendered":"<p style=\"text-align: left;\">Yesterday I ran five charts of stocks over the past ten years. Two things amazed:<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">1. The differences between the returns over the ten years.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">2. How all of them did better than the S&amp;5 500.<\/p>\n<p style=\"text-align: left;\">Here are the results:<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2016\/03\/handful.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-34242\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2016\/03\/handful.jpg\" alt=\"handful\" width=\"289\" height=\"215\" \/><\/a><\/p>\n<p style=\"text-align: left;\">What we all did (i.e. how we messed up) was <strong>to not stick with them.<\/strong> We got panicked out of them when they fell, got busy with something else, then forgot to get back in when stocks turned (like lately).<\/p>\n<p style=\"text-align: left;\">I could expand this list to include companies like Tesla (11.45 times appreciation over the past ten years) and Facebook (2.53 times). But history is not relevant &#8212; unless you pluck a lesson from it:<\/p>\n<p style=\"text-align: left;\">You love the stock if the management and their technology impresses.<\/p>\n<p style=\"text-align: left;\">Tesla is the classic double whammy. Great management. Great technology. Facebook is pretty good. And now Microsoft, with its new boss, looks pretty good.<\/p>\n<p style=\"text-align: left;\">Harry&#8217;s thought is simple: Let&#8217;s all buy a portfolio of <strong>Great Technology, Great Management Stocks<\/strong> and lock them away for ten years.<\/p>\n<p style=\"text-align: left;\">Which ones? I had this &#8220;brilliant&#8221; idea to google &#8220;T<em>he Most Innovative Companies.<\/em>&#8220;<\/p>\n<p style=\"text-align: left;\">Bingo, lists appeared from Forbes, Fortune, BCG Global Insights, and Fast Company.<\/p>\n<p style=\"text-align: left;\">I scanned the lists (added my own and my friends&#8217; ideas) and came up with this list:<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Adobe ADBE<br \/>\nAmazon AMZN<br \/>\nApple AAPL<br \/>\nAutodesk ADSK<br \/>\nBaidu BIDU<br \/>\nBox BOX<br \/>\nCisco CSCO<br \/>\nExpedia EXPE<br \/>\nExpress Scripts ESRX<br \/>\nFacebook FB<br \/>\nFitbit FIT<br \/>\nGE GE<br \/>\nGilead GILD<br \/>\nGoPro GPRO<br \/>\nGoogle &#8212; Alphabet GOOGL<br \/>\nMicrosoft MSFT<br \/>\nMobileye MBLY<br \/>\nNetflix NFLX<br \/>\nOracle ORCL<br \/>\nPalo Alto Networks PANW<br \/>\nPriceline PCLN<br \/>\nSalesforce CRM<br \/>\nTesla TSLA<br \/>\nVerizon VZ<\/p>\n<p style=\"text-align: left;\">I went through their price charts of the last ten years\u00a0 (or less, if they were younger), and learned:<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">+ Most go down sharply at some point &#8212; usually during a recession. But they usually bounce back.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">+ Some go down for a long time and may or may not bounce back, e.g.Fitbit or GoPro.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">+ Some sit down for a long time and then skyrocket, e.g. Tesla.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">+ Some suddenly get with innovation and transform themselves &#8212; like Verizon &#8212; and pay a handsome dividend &#8212; like Verizon.<\/p>\n<p style=\"text-align: left;\">I don&#8217;t profess to have discovered a new investment approach.<\/p>\n<p style=\"text-align: left;\">But brilliant management and brilliant technology has a good chance of making it over time.<\/p>\n<p style=\"text-align: left;\">Hence I am asking you, my readers, to check out my list and let me have your additions or deletions.<\/p>\n<p style=\"text-align: left;\">FYI, here&#8217;s a nice chart I found when googling most innovative companies. These tend to be very large companies. Most won&#8217;t become ten-baggers over the next ten years. We&#8217;re looking for smaller ones with great technology and great leaders. Fitbit, Mobileye and GoPro fit that criteria. Google\u00a0 Forbes, Fortune, and Fast Company and see what you find.<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2016\/03\/Innovative1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-34228\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2016\/03\/Innovative1.jpg\" alt=\"Innovative1\" width=\"691\" height=\"533\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2016\/03\/Innovative1.jpg 691w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2016\/03\/Innovative1-300x231.jpg 300w\" sizes=\"auto, (max-width: 691px) 100vw, 691px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff;\"><strong>Apple&#8217;s new tiny SE phone. <\/strong><\/span>It&#8217;s impressed the reviewers. Here&#8217;s one. Click <a title=\"Apple's tiny iPhone SE reviewed by Business Insider\" href=\"http:\/\/www.businessinsider.com\/iphone-se-review-2016-3?utm_content=10ThingsSAI&amp;utm_medium=email&amp;utm_source=Sailthru&amp;nr_email_referer=1&amp;utm_campaign=Post%20Blast%20%28sai%29:%2010%20things%20in%20tech%20you%20need%20to%20know%20today&amp;utm_term=10%20Things%20In%20Tech%20You%20Need%20To%20Know\" target=\"_blank\"><strong>here.<\/strong><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff;\"><strong>A Jewish Divorce<\/strong><\/span><br \/>\nA New York City judge is presiding over the divorce proceedings of a Jewish couple.<\/p>\n<p style=\"text-align: left;\">When the final papers have been signed and the divorce is completed, the woman thanks the judge and says, &#8220;OK. Now I have to arrange for a Ghet.&#8221;<\/p>\n<p style=\"text-align: left;\">The judge inquires what she means by a &#8216;Ghet&#8217;.<\/p>\n<p style=\"text-align: left;\">The woman explains that a Ghet is a religious ceremony which is required under the Jewish religion in order to receive a divorce that is recognized by the Jewish faith.<\/p>\n<p style=\"text-align: left;\">The Judge says, &#8220;You mean it&#8217;s a religious ceremony like a Bris?&#8221;<\/p>\n<p style=\"text-align: left;\">&#8220;Well,&#8221; she replies, &#8220;Yes, it&#8217;s sort of similar to a Bris, only in this case you get rid of the entire prick.&#8221;<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21218\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton.jpg\" alt=\"HarryNewton\" width=\"200\" height=\"199\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton.jpg 200w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton-150x150.jpg 150w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a><br \/>\nHarry Newton, who got to take Rosie to the Doggie Park. See you tomorrow. Send me your additions and deletions, please.<\/p>\n<p><script>\/\/ <![CDATA[\n(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){   (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),   m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)   })(window,document,'script','\/\/www.google-analytics.com\/analytics.js','ga');   ga('create', 'UA-45200733-1', 'technologyinvestor.com');   ga('send', 'pageview');\n\/\/ ]]><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday I ran five charts of stocks over the past ten years. Two things amazed: 1. The differences between the returns over the ten years. 2. How all of them did better than the S&amp;5 500. Here are the results: What we all did (i.e. how we messed up) was to not stick with them. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-34227","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/34227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34227"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/34227\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}