Commentary for week ending 10/23/2021
My commentary for this week will be relatively brief. But I need to say something about Facebook (FB). There have been a lot of comparisons to FB to being the “big tobacco” stock of 2021 because of the threat of legal actions. Personally, I think that is fallacious as FB is a vital part of small business and I doubt that any legislation will stop it from collecting ad dollars. I regard any weakness as a buying opportunity – not a reason to sell. But let’s suppose that FB is like Altria ( née Phillip Morris). Many years ago I bought 1,000 shares of Phillip Morris at about $18/share. That 18,000 dollar investment netted me thousands of dollars thru growth, dividends and spin-offs. Of course FB doesn’t pay a dividend but it makes it up in growth. My point here is that hated stocks which fulfill a want like tobacco in the case of Altria or advertising in the case of FB, they often overcome adversity, thrive and grow.