Why You Should Rethink Your Tech‑Stock Game Plan
Warren Buffett once compared a herd of lemmings to a squad of street‑smart investors.
In today’s market, even the sharpest of tech players can feel like that—especially after the steep slide of the last few days. As investment director Russ Mould of AJ Bell reminds us, now’s the moment to ask: Why did you jump on the tech train? What should you do next?
The Two Paths You’re Likely on
- Bandwagon Buyers – You piled in because everyone else was.
Now that the market has taken a hit, those investors may feel exposed and uncertain. - Conviction‑Based Buyers – You bought because you truly believe that the “FAAANM” firms—Facebook, Alphabet, Amazon, Apple, Netflix, Microsoft—own dominant positions, strong management, solid finances, and robust future cash flows.
If that’s your case, dips could be prime buying opportunities.
The Temptation vs. Reality
It’s tempting to cling to the idea that tech stocks are pandemic‑proof and “deserve” higher valuations because consistent earnings growth feels scarce right now.
But the same narrative is old news—and that means it’s already baked into the numbers. Don’t let familiar words mask hidden risks.
Key Takeaway:
- Re‑evaluate whether your enthusiasm is rooted in deep conviction or simply following the crowd.
- If you’re a conviction buyer, consider buying the dips—but remain sober about how lofty the rally can stay.
- For bandwagon buyers, reassess your position: hold, adjust, or exit, depending on how confident you feel.
Keep an eye on the market’s pulse, and make sure your next move reflects a clear, thoughtful strategy—not a reflexive J‑curve.
