Dod101 wrote:richfool wrote:I am very conscious that I pick up further exposure to several technology stocks through other IT's that I hold.
For example (from top ten holdings):-
Amazon: Monks: 4.1% FRCL: 1.81%
Tencent: JAI: 6.8%
Alibaba: Monks: 2.14% JAI: 3.6%
Alphabet: Monks: 1.84% FRCL: 1.01% Witan: 1.24% JPGI: 3.9%
Samsung: JAI: 7.50% SOI: 4.48% AAIF: 3.75%
I think you illustrate the danger in holding too many ITs. I hold 9 ITs all in very different areas of the investment universe. (surprised it is as many as that!) I will undoubtedly have the usual FTSE suspects in more than one, but none are in the least as volatile as your tech stocks might be I think.
Your concentration with say Alphabet and Samsung illustrates my point.
Dod
Dod, yes, indeed.
Though I have to say as a general point, I don't mind some overlap/duplication, as I take the view that it does two things. One it increases my exposure to a particular stock or sector, where that may be desired, without holding it in one (possibly specialised) IT. Secondly, I do get the perspective and expertise of different managers in determining when to buy, hold or sell that stock. I would for example, rather hold 5% of Amazon, spread over 2 or 3 IT's, than hold 10% of it in just one IT (as would have been the case with SMT). Thus I obtained my desired exposure to Amazon by buying Monks and FRCL.
The above said, I had previously noted that several IT's I hold included Taiwan Semi-Conductor Manufacturing Co in their top ten holdings. So last night I went through my IT holdings to see which held it and in what proportion. The result was quite surprising. This is a list of the percentages held by the various IT's, which note are from several (3) different sectors. There were 8 in total:
Murray Int Inc- 5.15%
Henderson Int Inc - 3.41%
Invesco-Perp G & I - 2.60%
Monks - 2.24%
Witan - 1.54%
JP Morgan Asian Inc - 4.80%
Schroder Oriental Inc - 5.51%
Aberdeen Asian Inc - 4.25%
So, yes I do think the duplication of Taiwan SCMC is excessive, and presents an increased risk if anything untoward affected that stock. (As Bruce Stout holds it, I trust it is among the safer stocks to hold (wink!).)