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Do You Have to Own Tech Stocks?

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  • (0:45) - Creating A Portfolio Without Technology Stocks
  • (4:30) - Portfolio Breakdown Of An Everyday Investor
  • (10:45) - Reacting To A Selloff: What Did He Buy?
  • (17:20) - The Big Takeaways From The Everyday Investor
  • (22:15) - Episode Roundup: SHW, OLN, DOW, F, T, AAPL, MSFT, INTC, FAST
  •                 Podcast@Zacks.com

 

Welcome to Episode #269 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about creating a winning stock portfolio.

With tech on a multi-year hot streak, does that make tech stocks an essential must-own for any portfolio?

Or can you do fine without owning it?

This Superstar Investor Doesn’t Own Any Tech Stocks

Ed, a 91-year-old long-term stock investor, and one of Tracey’s family friends, worked in the chemical industry for his career.

In 1990, he retired from Sherwin Williams (SHW - Free Report) , the global paint and coatings giant, and got a compensation package which included stock.

He has held onto many of those shares and 31 years later they have risen around 9,000%. This easily outperformed the S&P 500 during the same time, which returned around 1100%.

Ed loves stock investing and has 9 other stocks in his portfolio.

They include companies that pay dividends, such as Dow Inc. (DOW - Free Report) and AT&T (T - Free Report) .

Dow pays a dividend currently yielding 4.5% and AT&T is yielding 6.6%.

But he doesn’t own tech.

Big Technology and Dividends

If you’re an investor who wants to own dividend paying companies AND tech, there are several prominent examples including Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) .

But Microsoft didn’t start paying a dividend until Feb 19, 2003.

Since then, it has returned about 1000%.

Sherwin Williams, however, is a dividend aristocrat. It has raised its dividend 42 consecutive years.

Since Feb 19, 2003, when Microsoft paid its first dividend, old economy company Sherwin Williams shares are up over 2900%.

Do you need to own technology stocks in your portfolio?

Find out the answer on this week’s podcast.

[In full disclosure, Tracey owns shares of MSFT in her personal portfolio.]

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

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