Similar to ALU in our Growth Portfolio this morning we have considered one of our top tech positions in the International Portfolio with a similar conclusion. Again we are looking to pare back our exposure to the lofty tech valuations in 2022 but quality / growth companies cannot be ignored in a market where the strong keep delivering and the weak get hammered – sounds dramatic but the tape doesn’t lie. Apple may have frustrated me significantly with their after sales support over Christmas but at this stage the quality of their products and the sheer cash on hand of this almost $US2 trillion beast cannot be ignored – its cash generation is currently around $US100bn pa arguably making it a defensive play!
We are more likely to cut the likes of Amazon (AMZN US) or The Trade Desk (TTD US) when we meaningfully reduce our tech position but that’s for a later day. We may consider trimming our AAPL exposure slightly if / when we see a test of $US200 but this remains a core holding for MM.