In a similar vein to GOOG, I’m interested in hearing y’all’s take on FB. I know some investors have ethical qualms investing in this company after the 2020 election and other issues, but the power of this business cannot be denied and at a trailing PE of 22.7, the price seems very reasonable to me for a company with a wide moat and a clear vision for the future.
I’ve admired the business performance of these two companies for a long time without investing. Maybe it’s time to change that soon if the market swoon continues. I’ve got my 2022 IRA contributions ready to deploy …
One thing I love seeing on FB’s balance sheet is a declining number of shares outstanding. The annually reported number peaked back in 2017 at 2.901 billion. Most recently they reported 2.814 billion.
To cut to the chase, here’s where I settled on the FAANG group:
F: ethics, no. We all have our limits.
Amazon: bought in 2020, mostly wrt AWS
Apple: no need to buy more (thank you, Mr Buffett!)
N: don’t trust any media company to be durable >2 yrs out. And, no moat.
G: bought in 2020, 2021
Might buy more AMZN, GOOG this year. Still mulling/deciding on price point
N: don’t trust any media company to be durable >2 yrs out. And, no moat
214 million subscribers is not a moat? or for that matter the huge context library they have created? If they are not most, you can apply the same logic to FB and say tomorrow everyone will leave FB or all policy holders of GEICO will switch, etc.
You have a $30 B revenue run rate. You can argue they are expensive, etc, but arguing they have no moat is not a strong argument.
The mandated negative jargon on Facebook is something that honestly makes be laugh so hard my stomach hurts at times. The criticisms are completely circular and opposite one another while is seems there’s a belief that if you state you hate FB then you are a complete person.
For me, again being likely the oldest poster here, FB has more usefulness than just about any apparatus I’ve ever encountered. I follow no individuals on FB and I do not major news read news sites. But the 20-30 groups I’m involved with and the clicking to see what the younger members of the family/friends are up to is just incredibly delightful to me.
FB and Google are as dominant at any two businesses I’ve known.
The mandated negative jargon on Facebook is something that honestly makes be laugh so hard my stomach hurts at times…is seems there’s a belief that if you state you hate FB then you are a complete person.
Well, that was rude.
Not to say your points aren’t valid, and your arguments are the more convincing ones to many.
And (to paraphrase Dickens), “It may be that in the sight of Heaven (I) am more worthless and less fit”
But if a young man spoke to me that way, I would pull him aside for a short conversation
I have also purchased FB at prices between $300 to $325 (mostly around $320). It is now around 3% of my portfolio and I plan to add more if the price falls further.