Jim Cramer Manages Tech Stocks in His PortfolioSeptember 20, 2020
The portfolio at the Action Alerts PLUS Charitable Trust holds a number of the biggest tech and other stocks. But it can’t hold all of them forever – profit sometimes calls. Jim Cramer explains the why and wherefore on the September conference call with AAP members.
How about the big ones? Not the 1 as in “buy” but the ones that are…okay: Apple, Amazon, Facebook, Alphabet and Microsoft. Every time I look at those names I am reminded I don’t really feel that badly about not owning Zoom or CrowdStrike or RingCentral or Snowflake. All of these stocks we had to trim so we can buy them lower.
Apple’s new announcements yesterday remind how big the revenue service stream can be, you know. That’s why we like it. Call me steadfast. Why’d we take some off the table? Tough decision. Tough, tough, tough. But I couldn’t stand it if the stock collapsed. One hundred ten is the level where we will tell you to buy it. Let me see how far away — It’s 113. But beware, new club members. We’re going to take that one to one that goes to 110. Why? Because it was 137. That’s a very nice decline. Want to take advantage of it.
I’d find the…I did some work on Facebook ahead of the call. I find the Facebook FTC investigation just a headline of a story. The company has become the de facto way for small business to grow. They have two million small business ambassadors. I think that the FTC is going to regret that it went against a company that has pivoted to be able to help small-business people. I would bless a buy if the headlines take the stock back, let’s say, it was down four, to the 240 to 250 range.
I actually at this point would love for Alphabet to make some dramatic move to bring out some value. It hasn’t done that. But I will accept the stock’s bizarre pattern. Listen, this is really incredible. It goes up, up, up, up, up. And then reports a crummy number. It goes down, but not as down as it was when it started to decline. Then it does the exact same thing. It is a classic staircase. I feel like we should build a staircase in its honor. Consider us interested again at 1,400.
It would have been terrific for Microsoft, which raised its dividend, by the way, 10%, to have gotten TikTok. It makes me actually want to buy Oracle. Oracle’s going to do really well with it. And that’s how valuable the property is. But there’s plenty of good, relatively reasonably priced tech stocks that I’m happy with, including gaming and of course, the regular business that is just so, so strong. But mostly Azure, which is a competitor to Amazon Web Services and does business with Walmart+, which is going to be extraordinary. I’m tempted to upgrade 190s if it gets there.
All right. What can I say. We had to trim some of uber Cramer favorite Salesforce. Well, that’s bucking the trend today. It’s interesting. It’s very powerful. It is up 2.5% on Snowflake day. Marc, remember, owns 250 — Marc Benioff owns $250 million worth of Snowflake. Maybe that’s … why it’s going up. The company owns it. Maybe they’re not selling Salesforce because then they’ll realize that they made a killing and it’s actually going to move the needle. That’s very interesting. I just caught that myself.
Am I annoyed that I sold it ahead of the Snowflake? No, I’m ashamed of the losses we take. I am not ever ashamed of a profit. Never kick yourself if you have a profit and you take it.
Oh, we took some Amazon off, one of my favorites, was at one point 8% of the fund. I did instantly regret that, of course. But I don’t want to be the Amazon fund. OK. And that’s how I feel every time the stock becomes more than 7% of the portfolio, which it tends to do because it keeps going up.
I feel that discipline must always trump conviction. I used to have it on a little yellow Post-It: Discipline always trumps conviction. It will come in handy again, if this market ever decides to go down. Amazon? Call me an upgrader at 3,000. It’s at 3,100.