It may seem like a good thing for most other investors to agree with your top portfolio holdings, but over-ownership can be a real problem for popular stocks. In fact, three of the most over-owned stocks in the market, Apple (AAPL), Microsoft (MSFT) and General Electric(GE), are suffering from their extreme popularity.
Apple (AAPL)
AAPL is exceptional in many ways, and its widespread ownership is no exception. It may seem absurd, but so many investors and funds already own AAPL that there may be no buyers left.
Last year, TD Ameritrade released data on the most popular stocks across four different generations of investors. There were plenty of variations among the generations, but one thing was consistent: AAPL was the top holding of every single generation. Not only that, but AAPL was several times more popular than the number two stock owned by each generation.
Bernstein reported this week that AAPL remains one of the most crowded trades in the market. According to WhaleWisdom, which compiles 13F statistics, institutional investors currently hold more than $341 billion in AAPL stock. That’s more than any other stock.
Microsoft (MSFT)
MSFT comes…
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