By Quentin Fottrell
‘Apple now makes up about 50% of my portfolio’
“The decision to buy this stock gave my mom financial security, and it feels almost disloyal to sell even a portion.” (Photo subject is a model.)
Dear Moneyist,
I’d like your advice on a dilemma I’ve been struggling with.
When my mother passed away, I inherited a significant number of Apple shares through an inherited IRA. My overall investments are about $600,000, and Apple now makes up about 50% of my portfolio. My broader strategy is to invest primarily in dividend-paying ETFs across sectors, and I plan to retire in 10 years.
I’ve been taking my RMDs in stock rather than cashing in, so I still hold all of the Apple shares. While the stock has dipped at times, it has performed strongly overall – as this past week’s climb reminded me. Still, it feels like I have far too many eggs in one basket. The dividend only nets me about $1,000 per year.
I worry that a downturn in the tech sector, or something Apple-specific, could wipe out half my portfolio. There’s also an emotional factor. My mother, who worked modest jobs most of her life, bought Apple at around $8 a share. The decision to buy this stock gave my mom financial security, and it feels almost disloyal to sell even a portion.
I’d like your advice on how to approach this stock long-term. Should I begin trimming my position and reallocating, or is it reasonable to keep holding given my 10-year horizon? I do have some funds in cash and real estate, but most of my investments are in the market. Thank you for your perspective.
Grateful Daughter
Related: ‘It might be another Apple or Microsoft’: My wife invested $100K in one stock and it exploded 1,500%. Do we sell?
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
Be clear about the gamble you’re taking.
Dear Grateful,
Your mother was a smart, forward-thinking woman, and also a generous one.
If you are going to hold 50% of your portfolio in Apple, you need to be an Apple believer. That doesn’t make you right or wrong, and it doesn’t mean nothing bad will happen to the stock in the next 10 years, but it does mean you should (probably) be an Apple enthusiast. It will help you journey through the peaks and valleys that come with owning most stocks.
You’re breaking one of the cardinal rules of stock ownership, as you know. That is, putting all your stock (or 50% in this case) in one company’s basket. It can lead to disaster, and it can lead to riches beyond your wildest dreams for the lucky few (if, for example, you long had Nvidia (NVDA) or Palantir (PLTR) shares in your portfolio). Be clear about the gamble you’re taking.
Should you diversify, let go of the wild ride Apple has had this year, and may have in the coming years. If the stock goes from strength to strength on the back of demand for its flagship product, the iPhone, which has become so ubiquitous that it’s now used as shorthand for the mobile phone. Otherwise, view this Apple stock as a gift, separate from your actual portfolio.
Apple has had a resurgence over the last month.
Apple shares have been anything but smooth in the first half of 2025; the stock fell by approximately 30% earlier this year due to real concerns about President Donald Trump’s tariffs and the company’s ability to keep up with rivals in artificial intelligence. The recent launch of the iPhone 17 looks to have led to a surge of demand for both the smartphone and the stock.
Apple’s resurgence over the last month has made it a breakout star on the Nasdaq Composite COMP in recent days. The iPhone 17 has also had a welcome reception in China, a market that is key to Apple’s growth plan over the next 10-plus years. Its revenue-sharing agreement with Alphabet (GOOGL) for its Google Chrome browser also remains intact.
Your decision should be based on two things: (1.) your risk tolerance and (2.) your informed opinion about Apple’s ability to deliver. It should (probably) not be based on your emotional attachment to the shares and/or your unwillingness to part with them because your mother left them to you in her will. That said, your mother knew a solid long-term bet when she saw one.
Apple stock has a storied history to live up to.
Kevin Simpson, founder of Capital Wealth Planning, has at least that in common with your late mother. He told CNBC’s “Halftime Report” that he remains an Apple bull. “We love Apple. I think that this and probably for the next two launches are really a refresh,” adding, “We looked at this and said, ‘OK, the stock has really rallied into the release.’ The earnings report was fantastic.”
He did, however, say he was not convinced that we’re going to see AI on the phone, despite Apple (AAPL) CEO Tim Cook saying that the iPhone is already awash in AI. Speaking on CNBC’s “Squawk Box” earlier this month, he said: “We have AI everywhere in the phone, everywhere in the AirPods. Live translation is AI. We just don’t call it as such.”
But there are bearish views, too. In its second-quarter investor letter, Macquarie Core Equity Fund said: “Apple declined in the quarter and meaningfully underperformed the S&P 500 SPX,” adding that while Apple “continues to have laudable attributes and strong repurchase intent, the company is failing to grow at historical rates given the maturation of many key products.”
Apple has a storied history to live up to. As do you. The decision must be yours.
Don’t miss: ‘God works in mysterious ways’: I became a Nvidia millionaire playing ‘World of Warcraft.’ Am I smart – or just lucky?
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More columns from Quentin Fottrell:
My car needs $3,500 for repairs, but only has a trade-in value of $6,000. Do I bother fixing it?
‘I’m tired of corporate America’: My wife and I have $1.65 million. I’m 61. Can I retire already?
‘I’m convinced the U.S. will be drawn into World War III’: How do I prepare my finances?
-Quentin Fottrell
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09-25-25 0926ET
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