“Like many Apple fanboys (and fangirls), David Howard owns an iPhone, iPod and an iPad — not to mention a sizable chunk of the company’s shares, which comprise about 25% of his portfolio,” Reshma Kapadia reports for SmartMoney. “And the Austin-based mechanical engineer would like to add to his investment, but his financial adviser is trying to talk him out of it.”
“It is a message many financial advisers are preaching, even if clients don’t want to hear it,” Kapadia reports. “Some say they have had clients who rarely comment on portfolio strategies call to complain when an adviser sold Apple shares.”
Kapadia reports, “Amid the near unconditional love from analysts and fund managers for the world’s most valuable company — and the consumers who adore all-things Apple — some financial advisers are questioning how much of a good thing is too much. They say many of their clients are overloaded with Apple shares, not just through individual stock but also through other holdings as fund managers have piled in.”
“To be sure, most investing pros — including the advisers trimming shares — remain big believers in Apple’s long-term growth prospects. Plus, the company’s decision last week to begin paying a dividend of $2.65 a share arguably makes the stock even more attractive to long-term investors and retirees,” Kapadia reports. “But the problem, pros say, is that clients’ growing positions in Apple means less-diversified portfolios.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “James Wigg” for the heads up.]
Related articles:
Apple shares hit new all-time intraday, closing highs – March 27, 2012
U.S. elections: Time for investors to worry? – March 27, 2012
Apple’s devoted shareholders get rich, and hang on – March 23, 2012