As I perused my investment portfolio this morning, I was struck by a revelation: I am a veritable tech stock junkie. Every January, I vow to shift my strategy towards solid long-term investments, such as WMT or KO. No more tech stocks with low valuations, absent dividends, and nonsense multiples. Yet, when the tech stocks hit their lows in January, it was like a Black Friday sale for investors. How could I resist companies like META and TSLA at such discounted prices? It was like discovering a pair of current-season Balenciaga sock sneakers at 70% off. To pass up such a deal would require a level of self-restraint best suited for a life in a monastery. I’m not quite there.
So, I gave in to temptation and bought up shares of META, TSLA, AAPL, and GOOGL. These are sold companies. Who could blame me? But I didn’t stop there. INTL, SQ, SHOP, UBER. I hit my lowest when I purchased PLTR and SOUN—two companies I wouldn’t have dared to touch before. What the hell is wrong with me?
Simply put, I am addicted to tech investments. Tech stocks are inherently volatile, making them thrilling and exciting to invest in. Yes, the downside risk is considerable, but the potential rewards can be absolutely staggering and glorious. It isn’t about money. It is about winning and winning big. For example, while my purchase of KO in January has generated only a meager return of three dollars over three months, my investment in META is already up to 218 dollars, and TSLA has risen to 187 dollars. The 46-cent dividend I collected from KO is hardly a cause for celebration.
Some wise investors have cautioned me against relying too heavily on tech stocks. They have lived through 1998 and remember the dot-com bubble burst all too well. I was a kid then. I barely remember the headlines. Their words of warning feel like a cautionary tale from battle-hardened Vietnam veterans: “You will be drafted into the military and forced to fight a war you don’t support.” I believe you. It’s just hard to imagine.
Perhaps it’s time to reconsider the definition of staples stock. After all, can any of us truly envision a world without iPhones and Google searches? Can you live without Youtube or Netflix? For me, the answer is a resounding no. While I can survive without Hershey’s or Coca-Cola, my iPhone is an extension of my body—a third arm. When the pipes in my home burst, I still slept there; when the home internet went down, I immediately booked a hotel room.
It’s unlikely that I will ever be cured of my tech stock addiction. Even in the darkest moments of the tech industry, there is always an option to short or buy cheap. Perhaps I will change my tune when I am older and wiser, but I doubt it. If you can spot the potential and invest wisely in companies that could yield 10x or even 100x returns, why settle for a modest 10% increase? Some may deride investing in tech as legalized gambling, but that is precisely the point. If you knew that the next card the dealer would draw was a king and that he would bust, why would you not play?