I Turned $30,000 into $900,000 — Now What?

Hi Scott,

Many years ago when I was single I invested $30,000 into Apple shares, and this has grown to just over $900,000. I have a young family, and a mortgage, and due to COVID my work has dried up. My big worry is that holding so much of Apple means all my eggs are in one basket. I have a ‘glove puppet’ argument in my head, with one puppet (Warren Buffet) telling me Apple is a great business and to never sell, and the other puppet panicking about the need to diversify. It does not help that Apple shares are rocketing! Should I take my profits and diversify, or am I suffering from FOMO?

Dennis

G’day Dennis,

You think you have FOMO? I bought my first iPhone way back in 2007. If I’d spent the money on Apple shares instead, I’d have $20,000 today.

Here’s a way to think about your question: if I gave you $900,000 right now, would you invest the lot into Apple? Only you can answer that, but I’m guessing your answer might be “probably not”.

Yes, Warren Buffett is a big fan of Apple, saying “it’s probably the best business in the world”.

His company, Berkshire Hathaway, owns 245 million shares in Apple, which makes up a staggering 43% of the Berkshire portfolio. (Fun fact: his Apple shareholding has increased in value by $40 billion since March. Funner fact: Buffett traded his old-school flip phone for an iPhone … last year.) 

However, despite Buffett’s love for Apple, there’s a reason he’s decided to put his wife’s entire estate into a simple index fund — to stop what you’re going through. Life’s too short for imaginary arguments with glove puppets!

Scott