Yo Pit Crazies,

I dumped the last of my Apple Inc (Ticker: AAPL) and Amazon.com (Ticker: AMZN) shares on Thursday.

I scaled out of most of them in 2021 but I had a decent amount left and decided that this was  the end.

We talked about this during the Mid-Year Trading Recharge on Wednesday.

It was a good relationship and, in the Circle of Trading Life, I reused those funds the same day.

What did I buy?

You can see that right here …

I Bought Alphabet Inc. (TIcker: GOOGL)

Of course, it might not be the best way to dive in, but generally when I want to keep ownership I find the same day is the best way.

That way the investment decision is front and center and I don’t forget I have the extra cash laying around.

This is really about valuation.

AAPL and AMZN are great companies but they are getting pricey valuation wise. They were crazy high in 2020 and 2021. Since I first bought GOOGL shares in the early 2000’s, after they do a big tech spend, traditionally the stock has rebounded. Also 30% pullbacks from highs are not bad either.

The stock split is coming. The split has not worked for AMZN since the earning multiple is getting compressed. I think a 30 P/E for that company is the eventual landing area and it is closer to 50 after the weak Q1.

GOOGL is 20 P/E right now, before stripping out the cash. After that, the number goes to the high teens.

The stock split 2-for-1 years ago and the 10-for-1 split might give it a temporary boost.  Of all the FAANG stocks, it is the one I like the most.

The big reason is no multiple expansion. GOOGL is back to the same multiple it had prior to 2002 except the earnings are way bigger. AAPL and AMZN cannot say that.

That was my IRA portfolio rebalance. I will check back in a year to see how it went.

If you want some portfolio rebalancing action in your trading, OP mentoring is the place to be.

To Your Trading Success,

AG