Global portfolio: Goodbye Google, moving into the deep value US banks

LONDON — An eventful webinar today with only the seventh sale since the portfolio was started 50 months ago. Our strategy of buy-and-hold-forever is great in theory, but we live in a dynamic world where the only constant is change. And once again the underlying rationale for acquiring one of the stocks has changed. For the second successive year, the issue of online privacy was high on the Davos agenda, perhaps even more in focus last week than in January 2018. With a highly relevant court action on payment for content in Germany and another massive fine levied in France, it's time to re-assess the sustainability of a once all-powerful Google business model. Regulators around the world hate the Google/Facebook duopoly in online advertising, and once the laws change – as they must – their hugely profitable business models will be significantly affected. The funds raised from the sale of Alphabet shares (Google's parent) have been reallocated to the ultimate value investment place, US banks. We've picked blue chip JP Morgan and the venerable Morgan Stanley, both trading at low ratios by historical standards and at price:earnings ratios substantially below a year ago (MS at half the 18 times of early 2018). – Alec Hogg

Overall portfolio:

Four of the stocks in the portfolio moved up smartly from their price levels at our end November webinar, with Apple the only significant loser after disappointing news on its sales in China. The portfolio, which began at $200,000 in December 2014, edged a few thousand dollars higher than end November's level, and is now worth just under $350,000, or almost R4.6m in South African currency. The Rand improved by 25c against the US Dollar, offsetting the stock price improvements. In SA terms, the portfolio has grown at an annualised rate of 27% since its launch.

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