SINCE QUANTITATIVE EASING, THE NASDAQ COMPOSITE HAS BEEN A GRAVY TRAIN! I WISH I’D HAD THE COURAGE OF MY CONVICTIONS!

 

Company

8th March 2009

4th February 2020

Share value

% gain/loss

APPLE

$28.90

$308.66

$1.35trn

+965%

AMAZON

$61.69

$2004.20

$998bn

+3,148%

MICROSOFT

$16.50

$174.38

$1.33trn

+957%

ALPHABET

$185.80

$1482.60

$1.02trn

+697%

INTEL

$15.20

$64.42

$275.5bn

+324%

CISCO

$16.77

$46.53

$195bn

+177%

TEXAS I’MENTS

$14.35

$123.40

$115bn

+760%

FACEBOOK

$38.23+

$204.19

$582bn

+434%

ADOBE

$21.62

$358.00

$174.6bn

1,555%

NETFLIX

$5.26

$358.00

$157.1bn

6,706%

PAYPAL

$34.69#

$116.51

$136.7bn

+235%

BROADCOM

$18.47

$305.23

$121.4bn

+1553%

NVIDIA

$9.60

$240.33

$147.1bn

+1534%

LAM RESEARCH

$23.35#

$308.44

$43.9bn

+1221%

TWITTER

$43.98*

$33.07

$25.7bn

-24%

 

These calculations do not concern splits or rights issues, as were enjoyed by Apple

+ June 2012

# July 2015

+ August 2009

*Nov 2013

At its ‘low-point’ on 8th March 2009, the NASDAQ Composite dipped down to 1293. Confidence had been trashed, with most tech stocks, many of which had been hyped up at the time of the froth generated from the TNT rally at the turn of the century. On Monday it closed at 9273 – up 617% in the last decade. Regardless of market conditions there has always been an appetite for tech stocks with a track record – none more so than Apple, Amazon and Alphabet, whose appeal has been universal, despite a major blip at Apple, until Steve Job put this mobile titan back on the bridle and Jeff Bezos’s Amazon, which posted loss after loss in its embryonic years, managed to extoll the virtues of this on-line extravaganza.

As for Alphabet (Google), they were hugely reliant on Sergei Brin, Larry Page and Eric Schmidt. They were recently replaced by Sundar Pichai as CEO.  Intel and Texas Instruments have led the charge for chip stocks. Microsoft has no peer in the realm as the computer software titan, with its shares up 957% in just over ten years. Lam Research has made astonishing progress as an on-line exchange. Netflix has created unknown wealth for its investors and its founder and CEO Reed Hastings. The level of valuation over this period has been made with almost indecent haste.

With the likes of Tesla coming up on the rails – up 51% in the last 5 working days - it may be folly to think that the tech sector has run its race.

David Buik

SOURCES – CNN, BBC, CNBC, Reuters, Daily Mail, FT, The Times, Sunday Times, Sunday Telegraph, Guardian

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