- Meta Platforms is a highly profitable business that has a large share of a growing digital marketing industry.
- It is a market leader in VR headsets and could potentially make it a profitable contribution to future returns.
- Through its open-source LLM plans, Meta could become a leader in AI development, as well as harness its own to offer further value to its advertising customers.
- We expect it to outperform the market over the next 10 years, and see its current valuation as a buying opportunity.
Welcome to Moats and Monopolies! We share our portfolio every quarter here on Seeking Alpha, and since starting just over a year ago, we have comfortably beaten the S&P 500. This has been in no small part due to our investments in 4 of the so-called ‘Magnificent Seven‘ stocks, which comprise Microsoft (MSFT), Apple (AAPL), Tesla (TSLA), Nvidia (NVDA), Amazon (AMZN), Meta Platforms (NASDAQ:META) and Google Parent, Alphabet (GOOG). (We own Meta, Microsoft, Alphabet and Amazon).
Over the past decade, this group of mega cap, US-based technology companies, have comfortably beaten the market, and they collectively make up around a third of the current S&P 500 index. Below, we can see how an equal weighted portfolio of the 7 companies would have performed over the past decade against SPDR S&P 500 (SPY). It’s not even close – turning an initial $10,000 investment into over a quarter of a million with a 40.9% compound annual growth rate.
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