Sell Intel.Intel has been an amazing investment for many of us. If you've been a good LTB&Her, you probably have a nice chunk of it in your portfolio.The question that LTBHers need to remember to continue to ask themselves, however, is whether they would buy it now, if they had no position in it. Given the large number of other attractive investments available, the answer must be no.I think the best that we can hope for from Intel in terms of earnings growth is in the high 20%. I am sorry, but that just does not cut the mustard: not when you can choose to invest in Brocade, Extreme, AMCC, Broadcom, i2 or Network Appliances.So, sell your Intel. Shed a tear for an investment (a dear silverback gorilla who's time is passing) that has rewarded you handsomely over the years. Then move on. Please, don't love Intel. Save that love for your spouse and children, who will be better served when you sell that Intel and buy something better.Disclosure: I've been reluctantly selling Intel all year and will probably sell my last slug of it quite soon.Long BRCD, EXTR, AMCC, BRCM, ITWO and NTAP!Hjelmerus
So, sell your Intel. Shed a tear for an investment (a dear silverback gorilla who's time is passing) that has rewarded you handsomely over the years. Then move on. Please, don't love Intel. Save that love for your spouse and children, who will be better served when you sell that Intel and buy something better.Please define "better." I leave that risk/reward relationship to each individual investor with his or her own needs to consider. No I do not own Intel. I am young, a relatively new investor, and aggressive. I want an early retirement and Intel won't get me there.Fast forward 20 years.Let's say I am worth enough to retire quite wealthy. Now how does Intel stack up against a younger, perhaps less stable company, in terms of risk and reward? Again, to each their own.A friend of mine owns Intel and sat thru today disappointed but unshaken. Has their gorilla status been removed? By whom? AMD with their 15% market share?It's easy to find faster growth than Intel. Just screen for hypergrowth revenues with your favorite stock screener. But these numbers do not speak to sustainability.I could purchase GE today and feel very confident in my long term safety. I feel I could do the same with Intel, and at a higher rate of growth. I'd love to own some Disney and Wal Mart too. Talk about stocks I could sleep well owning any night, no matter how catastrophic the correction. The growth rates might not tickle your fancy, but you could be nine-nines certain the company would prosper long after your life on this planet. That's a helluva minute risk given the reward.PC sales are not in hypergrowth and haven't been for a long time. But this isn't exactly the automobile industry we are talking about. Owning shares in the leader of a still growing space, with the technology to branch well beyond that space, does not seem a bad deal to me.Don't pronounce the body dead prematurely.
Please define "better."For those who are saving for small children and long-term family goals, better means greater long-term returns.The usual boilerplate disclaimer about each individual's risk-reward tolerance, investment goals, etc... goes without saying.... My post was rhetorical.Hjelmerus
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