I bought these 4 US growth stocks for big gains!

From 2021, the family portfolio is heavily concentrated in value stocks, especially low-cost ones FTSE 100 sharing. Fortunately, this proved to be a good call because the past 12 months have been good for value stocks and bad for growth stocks (and especially US tech).

Growth stocks have a bleak 2022

However, as a veteran investor, I don’t place all of my hopes on one particular theme, market, or investment factor. For example, at the end of 2021, my wife and I reduced our exposure to expensive US stocks, fearing a bubble that would burst. And it did, with 2022 being the worst year for the US stock market since the dark days of 2008.

But as the last year came to a close, I saw that many US mega-cap growth stocks suffered some pretty brutal losses. For example, the shares in the four largest listed companies in the UK (by size): Apple, Microsoft Corp, Alphabet (formerly Google) and Amazon.com. This is the high and 52-week high of the four tech whales.

The declines range from more than three-tenths at consumer gadget giant Apple to more than half at online shopping giant Amazon.com. Combined, these stock declines have wiped out trillions of dollars of investor money, with Apple alone losing $1trn in market capitalization. wow

When growth stocks become value stocks

As an old-school value investor, I like to buy quality companies next the stock price has run out. So, in early November – shortly before the US midterm elections – my husband bought shares in all four of these mega-tech growth stocks. Here’s the current stock price, plus a year’s worth of performance:

Since we bought these four new stocks (on or around November 3), Apple is down 6.7%, Microsoft is up 5%, Alphabet is up 4.7% and Amazon is down 3.6%. Overall, these growth stocks have yet to generate real returns for family portfolios. But time is on our side, right?

Now for the bad news

For the record, I expect a fairly deep and long recession in the UK and Europe this year. However, I also believe that the US will be the best major economy in the world by 2023. And that is why, like my hero Warren Buffett, I am betting on America to bounce back.

Then again, I have no doubt that there may be a price drop – and maybe a fall – in US stocks in 2023. But I also expect that when the US Federal Reserve moves from raising interest rates to lowering them, then the US economic powerhouse will take off again. And I can not think of many better ways to ride this recovery than to acquire shares in the four largest growth Goliaths in the world!