Top Holdings: Then and Now
Fidelity Advisor Growth Opportunities mutual fund is the top large stock 10-year performer, according to Kiplinger.* The fund’s holdings, as shown in its most recent filing with the Securities and Exchange Commission, paint a picture of the economy as it is now, with notable exclusions of past powerhouses.
The fund’s top five holdings are:
|Alphabet (i.e. Google) (NASDAQ: GOOGL)||$358 million|
|Facebook (NASDAQ: FB)||$249 million|
|Amazon (NASDAQ: AMZN)||$358 million|
|Microsoft (NASDAQ: MSFT)||$528 million|
|Apple (NASDAQ: AAPL)||$313 million|
Companies, once considered the bedrock of the American economy that the Fidelity fund does not own: GM (NYSE: GM), Boeing (NYSE: BA), Norfolk Southern (NYSE: NSC), Johnson & Johnson (NYSE: JNJ), Con Edison (NYSE: ED), Ford (NYSE: F), Coca Cola (NYSE: KO), among other “Blue Chips.”
In 2019, “Communications Services” with companies such as Comcast (NASDAQ: CMCSA), Netflix (NASDAQ: NFLX), and Google among others, constituted almost 18% of the fund’s portfolio. In 2009, there were no communications services holdings. Energy was 10% of the fund’s portfolio in 2009. Today it’s a meager 1%. Back then, Morgan Stanley (NYSE: MS), Merrill Lynch, Lehman Brothers were core holdings of the fund. Today, none of them are represented.
What’s the takeaway? The economy has changed and growth opportunities for investors, and by extension many workers, are likely to be found in technology.
David R. Evanson is a financial journalist in Philadelphia.
*Anonymous, (2019). Top-Performing Mutual Funds by Category. Kiplinger. Retrieved December, 2019