Roughly three years in the past, I made a decision that I used to be going to construct my Shares and Shares ISA and Self-Invested Private Pension (SIPP) round 4 well-known shares. My view on the time was that, going ahead, the world was more likely to develop into extra know-how pushed, and I noticed these shares as an effective way to play that theme.

So what have been the shares? And the way have they carried out during the last three years?

My 4 massive bets

The 4 firms I constructed my funding portfolio round three years in the past have been Apple, Microsoft, Alphabet (Google), and Amazon (NASDAQ:AMZN).

I used to be very bullish on all 4 on the time, so I made them my largest portfolio holdings.

By way of efficiency, they’ve accomplished nicely general, returning a mean of 48% (excluding dividends), or 14% a yr.

Microsoft’s been the perfect performer as a result of its publicity to synthetic intelligence (AI) however Apple and Alphabet have additionally produced sturdy returns.

These returns have propelled my portfolio greater and put me nearer to reaching monetary independence.

Taking a long-term view

It’s been a bumpy experience although. In 2022, all 4 shares fell closely. Amazon, for instance, dipped about 50%.

As a long-term investor nevertheless, I’m comfy with share price turbulence. If traders need to pocket massive long-term positive factors from the inventory market, that’s the price of admission.

I’ll level out that as an alternative of panicking and promoting them once they fell in 2022, I purchased extra of all 4 shares at decrease costs. So once they rebounded in 2023, my ISA and SIPP did very well.

My portfolio right now

Now right now, I’m nonetheless constructing my portfolio round these 4 firms. I feel all of them have a whole lot of potential in our digital world.

Nonetheless, Nvidia‘s also come into the mix. As a long-term investor, I want to have a lot of exposure to the chip designer, as it’s on the coronary heart of the AI revolution.

Of all these shares, the one I’m most enthusiastic about proper now could be Amazon. Its earnings are ripping greater in the mean time. This yr, analysts are forecasting earnings per share progress of greater than 50%.

In the meantime, it’s positioned itself nicely to learn from the AI growth. With its new ‘Bedrock’ service, it will probably assist firms make their very own giant language fashions like ChatGPT.

One different factor to notice about Amazon is that it’s a lot much less owned by portfolio managers than Apple, Microsoft, and Alphabet. So I feel there’s potential for brand new consumers to return alongside.

The chance here’s a downturn in shopper spending or enterprise spending on cloud providers. This might sluggish progress.

Taking a medium-to-long-term view nevertheless, I’m actually bullish on the inventory.

With the corporate’s valuation close to all-time lows proper now, I feel this ‘Magnificent Seven’ inventory has the potential to hit $250 within the medium time period.