Some of Little’s investments are up 30% or 40% in less than six months. He said investors have to look past short-term market fluctuations – although he doesn’t expect another market drop this year – and take a view of up to four years from now.
It was clear when the pandemic started that there were certain sectors you had to watch and certain sectors that you had to be cautious about. He liked any companies that were connected to 5G or those that would benefit from large swathes of the population sitting at home, like a Netflix. He steered portfolios towards innovation and technology.
This approach has continued and, having stockpiled cash for several months, Little has been able to seize on opportunities and modify the portfolio to be more aligned with a Democrat U.S. government. Another recent opportunity arrived when Apple’s iPhone sales disappointed.
He said: “The reason Apple dropped was because the earnings for the last quarter on their iPhone sales were down in the ditch. Nobody’s going to continue to buy old technology – 5G is here and everybody’s waiting for the 5G phones to come out. So, we started buying Apple within the last four or five days.”
He added: “There were places that we knew we couldn’t be looking at, like real estate investment trusts, so we’ve backed out of all those and brought more fixed income into the portfolios. It was all based on the design of taking advantage of the opportunity that was given to us during the panic sell in March and then looking out and seeing what companies won’t be affected as much from a more socialistic viewpoint from the White House.”
