In these tough times I thought I'd just throw an idea out there.
If you had to reduce your portfolio down to just a sole share (business rather than IT) - you had to hold that share through thick and thin - what would that share be and why? Can't be something you have offloaded in the recent doldrums...
For myself I would go for a high barrier to entry type business with a strong recurring revenue, has plenty of cash for bad periods, is not too exposed to trade conflicts and has huge growth opportunities still in front of it (but not at an astronomic pe ratio).
Probably looking at things this way I would say that Microsoft is probably the one share I would hold on too. Covid will hit its business sector presumably as companies go out of business however highly likely home users, work from home may also mean users come in that way. More folk probably will want surface pros and the cloud working and remote comms should be good plays for the business as some companies will realise these means of working have upsides. Huge opportunities still in robotics / AI we presumably are only at the beginning of a journey when we project into the future.
The move to make Microsoft not only carbon neutral but carbon negative is a smart one and shows a bit of leadership. It works with the future user base of its products rather than against them and sees a huge problem as an opportunity.
Be very interested to hear other ideas from other individuals as it could be a good source of thought.
Yes agree,
did you add this you your portfolio and any views on future 12 months
