I still remember all the negative talking about Mark Zuckerberg, how he has lost his mind and that he is on the verge or ruining Meta. During such times one should buy
Hi Thijs; Congratulations on your META purchase. I had the opportunity to buy META at around $100/share, but I got scared away by META investment in Metaverse. One note that you should consider when determining exit price. With the rise of AI, it is going to impact every aspect of our life,. META is going to be forefront of this. As you know, there are three parts to AI. One, you need the software, like Chat GPT. Second, you need the hardware, like NVDA A100 GPU. Third, you need the data. I can think of no other company that has more data than META. Just something to consider. Cheers, Sung
Hi Sung! Thanks a lot as always for your great comments. I always appreciate your wisdom. I do think you have a point, but what about Alphabet? Alphabet is winning the race in AI (against Meta) right now it seems, and they have quite the large datasets themselves. Having that said, the quality of Meta as a business is convincing and I am not planning on selling. Thanks Sung! Cheers!
Great video Thiijs, as ever - but there's a key question you didn't address. Many value investors are way up on this stock in a short time. At the current price, it seems overvalued to me using a DCF model and a reasonable rate of return, so the risk of holding has increased substantially. Although it isn't natural for us value investors, what are your thoughts on selling out of part or all of the stock? thanks!
Excellent question. As Meta possesses enough strength to bolster forward (from a business perspective) I do believe not selling is the better option here. Obviously I am not adding at these prices. Yet, I feel comfortable seeing my stake in the business produce value for the years to come. Of course, there will be many ups and downs and if this price increase continues the business might overextend its value. This is something I have come to accept and can live with.
@@Hellocali1 i dont use Twitter for several reasons. The main one being that I dislike Elon and his fans more than anything. The reason Meta created Threads is because a lot of other people left for the same reason. Other text based apps saw a huge increase but the companies behind it couldn't handle it. Meta obviously has the biggest team in the world so they should be able to handle making a good functioning app. Also the fact that you can bring all your IG followers with you very easily and that it also directly promotes and is linked to your IG is why almosy every creator with IG will be trying Threads while most dont bother to try Twitter. I can see Threads becoming pretty big if Meta plays their cards right.
I shied away from buying when it was cheap (hindsight is wonderful) as was not sure the metaverse will work out or soon enough anyway, and due to the risk of slow decline of the rest of it (I havent used FB in a decade or so and rarely touch Instagram) Looks obvious now but I am happy enough not to have jumped in. Righlty or wrongly, I judged it as too risky for me. Of course, I'm no match for Monish...
No worries! It's not the quick double that is so interesting or appealing, but rather what comes next (i.e. What the business will do and produce over the upcoming 20+ years). A double is wonderful, but the real compounding only starts after that.
Who goes to CVS still? The only thing going for them is the pharmacy. The stuff in the stores are way more expensive than just going to target or Amazon imo
I still remember all the negative talking about Mark Zuckerberg, how he has lost his mind and that he is on the verge or ruining Meta. During such times one should buy
Hi Thijs;
Congratulations on your META purchase.
I had the opportunity to buy META at around $100/share, but I got scared away by META investment in Metaverse.
One note that you should consider when determining exit price.
With the rise of AI, it is going to impact every aspect of our life,.
META is going to be forefront of this.
As you know, there are three parts to AI.
One, you need the software, like Chat GPT.
Second, you need the hardware, like NVDA A100 GPU.
Third, you need the data.
I can think of no other company that has more data than META.
Just something to consider.
Cheers,
Sung
Hi Sung! Thanks a lot as always for your great comments. I always appreciate your wisdom. I do think you have a point, but what about Alphabet? Alphabet is winning the race in AI (against Meta) right now it seems, and they have quite the large datasets themselves. Having that said, the quality of Meta as a business is convincing and I am not planning on selling. Thanks Sung! Cheers!
Great video Thiijs, as ever - but there's a key question you didn't address. Many value investors are way up on this stock in a short time. At the current price, it seems overvalued to me using a DCF model and a reasonable rate of return, so the risk of holding has increased substantially. Although it isn't natural for us value investors, what are your thoughts on selling out of part or all of the stock? thanks!
Excellent question. As Meta possesses enough strength to bolster forward (from a business perspective) I do believe not selling is the better option here. Obviously I am not adding at these prices. Yet, I feel comfortable seeing my stake in the business produce value for the years to come. Of course, there will be many ups and downs and if this price increase continues the business might overextend its value. This is something I have come to accept and can live with.
Threads is gonna be awesome❤
Why? Because people are bored of Twitter?
@@Hellocali1 i dont use Twitter for several reasons. The main one being that I dislike Elon and his fans more than anything. The reason Meta created Threads is because a lot of other people left for the same reason. Other text based apps saw a huge increase but the companies behind it couldn't handle it. Meta obviously has the biggest team in the world so they should be able to handle making a good functioning app. Also the fact that you can bring all your IG followers with you very easily and that it also directly promotes and is linked to your IG is why almosy every creator with IG will be trying Threads while most dont bother to try Twitter. I can see Threads becoming pretty big if Meta plays their cards right.
I shied away from buying when it was cheap (hindsight is wonderful) as was not sure the metaverse will work out or soon enough anyway, and due to the risk of slow decline of the rest of it (I havent used FB in a decade or so and rarely touch Instagram) Looks obvious now but I am happy enough not to have jumped in. Righlty or wrongly, I judged it as too risky for me. Of course, I'm no match for Monish...
No worries! It's not the quick double that is so interesting or appealing, but rather what comes next (i.e. What the business will do and produce over the upcoming 20+ years). A double is wonderful, but the real compounding only starts after that.
Look at CVS. Near 52-week lows. At a p/fcf of around 5.
Who goes to CVS still? The only thing going for them is the pharmacy. The stuff in the stores are way more expensive than just going to target or Amazon imo
we all know about CVS
I do sometimes go for the scratchers tho
@@Hellocali1 they are an insurance company as well, your comment makes me want to buy it more
@@crohmer what else are you buying right now
Have you taken into account how much share-based comp they are doing? They are about even if I’m not mistaken 🥴?
Of course! They are a net buyer, they buy back far more than they dilute through share based comp.
are you interested in BN?
They should stop buyback at this level
I see them continuing for a little while longer, but you are right. It has become considerably less attractive.