At the start of every quarter, I always take some time to review my stock holdings. With that in mind, here’s a look at my five largest as we start the second quarter of 2021.
Alphabet
My largest stock holding is Alphabet, the owner of Google and YouTube. At the start of the year, this was my second-largest holding. However, an 18% share price rise in Q1 has pushed it into top place.
I think Alphabet is well-positioned to benefit from the reopening of the economy. As travel picks up, travel advertising should boost its revenues. Meanwhile, in the long run, the company looks set to benefit from the growth of the online advertising market.
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One risk I’m keeping an eye on here however, is regulatory intervention. This could impact the investment case.
Apple
My second-largest holding is Apple. This was my largest at the start of the year. However, the stock experienced some weakness in Q1, pushing it down a notch.
I’m still very bullish on Apple. Looking ahead, I’m excited by its potential in healthcare. CEO Tim Cook is hoping this will be Apple’s largest contribution to mankind.
Looking at the valuation, I actually think Apple shares offer a lot of value right now. The stock’s forward-looking P/E ratio of 26 is very reasonable, to my mind.
Apple does face plenty of competition from rivals such as Samsung. This is a risk to consider. However, I think the long-term investment case remains attractive.
Diageo
My third-largest holding is alcoholic drinks champion Diageo. I see Diageo as a good ‘reopening’ stock to own. Last year, its sales fell due to Covid-19 lockdowns. This year, sales should pick up as the global economy reopens.
Diageo isn’t just a reopening play though. In the long run, there’s plenty of growth potential due to the company’s exposure to emerging markets .
Of course, if there are Covid-19 setbacks, DGE could be impacted. However, I’m a long-term investor here. If the share price was to fall again, I’d most likely buy more shares.
Upwork
My fourth-largest holding is Upwork. It operates the largest freelance employment platform in the world.
This stock is a bit different to my other holdings – it’s much more of a speculative play. The reason it’s one of my top holdings is that it’s done very well for me. I first bought it at $12 last year. Today, it’s at $45. In Q1, the stock rose nearly 30%.
I think this stock has enormous potential. In my view, it has the scope to be the Amazon of the employment world. That said, it’s very much a higher-risk stock. Profits are small and the share price is volatile.
ASOS
My fifth-largest holding is online fashion retailer ASOS. This is another stock that performed well in Q1. Over the period, it rose about 20%.
Back in December, I said I may take some profits here to make it a smaller holding and reduce my risk because the stock’s quite volatile. I still plan to do this at some stage. However right now, the company is performing well and the share price is trending up. So, I’m not going to trim my position just yet.
