Below is my portfolio of stocks in the order of most favorite to least. Although FB is up +100% in my portfolio it is one of my least favorite stock because their main revenue model is advertising through their slowly dying platforms FB and Insta. Logically if FB as a company doesn’t exist tomorrow no one would care. 1. AAPL 2. MSFT 3. VOO, SPY, FXAIX (s&p 500 etf) 4. TRBCX (Mutual fund) 5. GLD (Gold etf) 6. WMT (biggest competitor to amzn) 7. BAC, JPM 8. FB 9. TLT (bond etf) What is your opinion on FB and other holdings in my portfolio?
Meta is a definitely a long term hold because the amount of money they generate and cash flow. Don’t discount Metaverse. They have the money and talent.
Agree with this
Until Apple gets in the metaverse game and crushes the market…. Let’s not forget that as people go into VR, a portion will want high end VR experiences which will mainly be offered by valve and maybe sony
Prolly diversify more - buy JnJ also - they are Microsoft of consumer products
I would hold it. No it won’t cease to exist tomorrow.
1. FB and Insta aren’t dying platforms. Once the network effect is successfully established it is super difficult to move away for entities involved. 2. The feedback loop established by huge amount data they have, makes them a monopoly in social networking space. 3. These cash cow platforms allow FB to make big bets in other domains e.g. Metaverse. This provides them a disproportionate advantage over any other competitors in R&D space.
Their digital ad business is a cash cow with decent moat, and still some more room on increasing revenue per user. The VR segment has the biggest potential that might take the company to the next level. The current traded price is pretty low vs its intrinsic value, so plenty of margin of safety here. It’s definitely a hold for me, might accumulate more if the stock drops lower.
Why not just by the index long term and let compounding do all then work? Take a look at warren buffets annual shareholder letter showing the top 20+ companies then and now. You will typically only find one or two remaining in the list in the now. Berkshire is always one of them.
Fb is still growing YoY, hodl
I don’t use FB, so if it ceases to exist tomorrow its 3B users wouldn’t care or the millions of businesses that depend on the platform for its day to day activities.
I take it like this, TSLA has made a lot of people a lot of money. I had $TSLA shares too in 2018 but I sold it because I couldn’t see it go up and down back then. Sure it grew up, but my other investments that were following the same investment pattern didn’t. I didn’t have the money then to YOLO. If you don’t have the confidence in Meta, it’s absolutely fine to not invest in it and take profit for what you have today. Treat it like, it doesn’t fit your investment principles so it’s okay to not invest into it. It doesn’t matter if it goes up or down, it didn’t meet your requirements when you had money in it. But generally speaking, social media is here to stay. If FB goes away, folks would move to Twitter, Reddit, LinkedIn, or Blind. So if social media has to exist, FB/Insta/WhatsApp are gonna be around. And when it comes to metaverse, only Meta can make it mainstream. It’s not the next gen hardware or over the top experience. In simple words it’s adoption. Look at the past, so many headsets have come out but UX was complicated. And one would be narrow minded to think Ads are the only way Meta can make money from Metaverse. Opinions of my own not the company I work at, all the FB/insta things can be done in Metaverse like groups, marketplace, etc. Ads would be around, but i highly doubt that that would be the sole source of income then.
Sorry for the off-topic, but why do you have 3 s&p 500 ETFs? Different accounts?
Yes Roth and 401k