*This content is brought to you by Brenthurst Wealth
By Johan Burger, CFP® *
The start to 2022 has not been kind to the world’s high-flying tech stocks, with the US and Chinese tech giants taking a hit. Concerns in the US Centre are regarding economic growth, rising inflation and audience retention, while their Chinese counterparts are fighting government clampdowns.
Either way you look at it; the Nasdaq is down more than 11% this year, in addition to some of the big losers, including pandemic darlings Robinhood and Peloton. Big names like Meta, Amazon and Netflix have also seen their stock prices knocked back quite severely.
This scenario has not pleased investors – some of whom are starting to question their exposure to what appears to be quite risky stocks.
The risk is exactly what creates the rewards in listed equities. An important fact to consider regarding these types of stocks is that they are precisely the ones that will be thriving in 10, 20 and 30 years from now.
Companies like Microsoft are already quite established, and they have proven to be adaptable and to remain relevant, even though there is still the risk that they could be overtaken by new technologies. Although companies dabbling in artificial intelligence, quantum computing and other emerging technologies carry the greatest potential reward, they also carry the greatest risk.
Look no further than tech behemoth Amazon to understand the phenomenal growth that is possible if you back the right horse early enough. The company listed in 1997 at around $1,50 and today has a share price in the region of $3 000. Unsurprisingly, it has not been a smooth ride to get there, and the company’s share price has had its fair share of ups and downs over the past years. But it remains a perennial winner, and that is exactly why investors love the stock.
The best way to profit from other tech stocks – which can grow as fast – is to try to get in early and to hold on, no matter what.
Here are three crucial points to remember, should you have doubts regarding the wisdom of holding onto these stocks:
Tech stocks = growth stocks
The argument in favour of tech stocks – from information technology to biotechnology – remains unchanged, no matter the short-term influences of the past year.
Amazon’s growth is the perfect example of how developing technologies and platforms of tomorrow will position these businesses for the future. Tech companies have remained relevant through the 2000s and 2010s and will continue to do so going forward.
The slight blip at the beginning of 2022, will be forgotten in decades to come.
Volatility is an opportunity, not a threat
Stock prices climb and fall all the time, sometimes more than at other times. That is a reality that you have to come to terms with as an investor.
The other reality worth bearing in mind is that you only record a loss on your investments if you sell when they are worth less than when you bought them. If you do not sell when shares dip, then you have not lost anything. The value of those shares in your portfolio might be lower, but only at that point in time.
More importantly, with a discounted price on a stock you believe will rebound and grow, you might consider it the ideal opportunity to rather buy thereof. When the market and share rebound, you will benefit from its recovery.
A rough ride
This advice (to buy the dip) may annoy investors who recently bought when tech stocks were at all-time highs.
As I have mentioned, your portfolio might be less valuable than when you first invested, but you only lose capital if you sell when the price is lower than what you paid.
The best advice I can provide you with is to remind yourself that investing is a long-term game and that the market’s long-term trend is always upwards. The beginning of 2022 may seem like it is all crashing down, but when you look back in 10 or 20 years, these few months will hardly register.
The long and the short of this tale is that doing nothing, is the best thing you can do to make sure your retirement savings remain on track. If in doubt, reach out to a financial advisor to help get a better perspective on the risks and rewards you can expect from exposure to tech stocks in portfolios.
- Johan Burger, CFP®, is head of Brenthurst Wealth Pretoria
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
