Is META More of an Advertising Company or Tech?
Let’s start with this.
Some investors’ portfolios are concentrated in 7 stocks. You know the companies—Apple, Microsoft, Amazon, Alphabet, Nvidia, META, and Tesla. Some investors invest this way. They dismiss the investment industry’s over-diversified approach.
Warren Buffett is the most famous of these investors. Buffett and others think better homework means fewer risks and mistakes. It reduces the need to over-diversify.
Many investors over-diversify to avoid heavy losses. The reason they expect heavy losses is simple. They know little to nothing about the companies behind the stocks they own. They hope that over-diversifying covers their lack of research. But that leaves them with average stock returns or lower.
This brings me to META.
I researched and valued META based on its fundamentals. All the talk about META did not entice me. Many professional and average investors discuss META. Most are not saying what META is. They may assume everyone knows.
I do not dismiss the future benefits of AI for META and other companies. Nor do I know enough about AI to give an opinion. But I know what META is today.
META’s core business is still advertising. It’s still a tech company. But ninety-seven percent of META’s sales are from advertising. Someone told me I was mistaken. I then showed them a page of META’s Annual Report. The sale’s percentage surprised them.
I can understand how investors get caught up in the constant talk about Meta and others. But investors still need to know what stock they are buying.
My META Stock Report will be out soon.
Enjoy your weekend.
I have published two new stock reports available for purchase now, and two are coming shortly. Check them out here.
And to get your free stock report on Amazon.com, Inc., sign up for my newsletter below.
