Here are my 5 top stocks as we start Q3 2021

Here, Edward Sheldon provides readers with a look at his top portfolio holdings. Interestingly, his top four stock holdings are not UK shares.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

At the start of every quarter, I always spend some time reviewing my investment portfolio. Here’s a look at my five largest stock holdings as we begin the third quarter of 2021.

Alphabet

My largest stock holding as we start Q3 is Alphabet, the owner of Google and YouTube. It was my top holding at the start of the last quarter and it’s performed well for me, rising more than 20% over the last three months.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Although Alphabet shares don’t offer the value they did six months ago, I’m still very bullish here. I expect the company to continue generating strong growth on the back of its dominant positions in digital advertising, streaming, and cloud computing. 

Of course, after Alphabet’s strong recent performance, we could see a pullback. But I’m not worried about this. I’d most likely buy more shares as I see the stock as a core holding.

Upwork

My second-largest holding is currently Upwork. It operates the world’s largest freelance employment platform. This was my fourth-largest holding at the start of Q2 but I bought more shares during the quarter. The combination of this top up and some share price strength has made UPWK a larger position in my portfolio.

Having Upwork as my second-largest position is a risky strategy. This stock – which is more speculative in nature than most of my holdings – is highly volatile.

However, I’m comfortable with the risks. I think the ‘gig economy’ story is still in its infancy and I expect Upwork to get much bigger in the years ahead. I’ll point out that I’m not the only one who likes UPWK. Baillie Gifford, which has a fantastic track record picking disruptive growth stocks, is a major shareholder here.

Amazon

Amazon is a new entry into my top five stocks. I added to my position here during Q2 to make the stock a major holding in my portfolio. I’m bullish on Amazon for a couple of reasons.

Firstly, I think its e-commerce sales are likely to expand significantly in the years ahead. Secondly, I expect Amazon’s cloud division to experience strong growth over the next decade as businesses move their operations to the cloud.

Amazon stock has been consolidating this year. It now looks like it could be able to break out and move higher. That said, I expect Amazon shares to be volatile going forward. This stock regularly has pullbacks of 20%+.

Apple

My fourth-largest holding is good old Apple. It has been a bit of a laggard this year, underperforming the broader market. I’m fine with that. Last year, Apple shares rose around 75%.

I remain bullish here. Not only is Apple having success with its iPhones, iPads, and Macs, but it’s also seeing strong growth in its services division (although this division is under scrutiny from regulators).

Diageo

Finally, my fifth-largest holding is alcoholic beverages company Diageo, which owns Smirnoff, Tanqueray, and a range of other top spirits brands. It was my third-largest holding last quarter but has slipped down to fifth place, despite the fact it performed well during the quarter.

DGE adds some balance to my top five holdings as it’s more ‘defensive’ than the other stocks. That said, the stock has had a great run since November and is currently quite expensive. So there’s a chance it could experience a pullback in the near term.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Edward Sheldon owns shares of Alphabet (C shares), Amazon, Apple, Diageo, and Upwork. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. The Motley Fool UK has recommended Diageo and Upwork and has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Stack of one pound coins falling over
Investing Articles

Should I bite on these 4 double-digit dividends?

Our writer considers whether these four double-digit dividends look sustainable and what that means for his portfolio.

Read more »

Close-up of British bank notes
Investing Articles

Can the Rolls-Royce share price get any cheaper than 80p?

The Rolls-Royce share price was edging back towards £1 and maybe above penny share levels. But then new troubles sent…

Read more »

Senior woman wearing glasses using laptop at home
Investing Articles

2 value stocks with high dividend yields to buy in July

Our writer examines two value stocks for his portfolio that marry low price-to-earnings ratios with high dividend yields.

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Could I double my money buying at today’s Scottish Mortgage share price?

The Scottish Mortgage share price has crashed. Does that mean now could be a rewarding moment for our writer to…

Read more »

Hand holding pound notes
Investing Articles

Will the Lloyds dividend yield top 5%?

Our writer considers the outlook for the Lloyds dividend -- and what he should do about it.

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

3 ways I’m protecting my FTSE 100 stock portfolio right now

Jon Smith writes about several different ways he's trying to plan for the future to try to make his FTSE…

Read more »

Preparing a budget during a pandemic
Investing Articles

3 reasons I think the Aviva share price could double in 5 years

I'm not aiming to get rich quick, but today's Aviva share price makes me want to buy more and hold…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The easyJet share price fell 10% last week. Here’s what I’m doing!

Last week saw the easyJet share price continue its poor performance. Here, this Fool weighs up if this is an…

Read more »